The Australian Government has announced a major expansion of the Small-scale Renewable Energy Scheme, opening the door for larger commercial solar projects to receive an upfront STC discount.
From 1 October 2026, the scheme is expected to expand from its current 100 kW limit to include eligible solar systems up to 1 MW, subject to the required regulations being put in place.
This change could reduce the upfront cost of commercial, industrial and agricultural solar installations by around 20%.
Small-scale Technology Certificates have traditionally been available for eligible solar systems up to 100 kW.
Businesses installing larger systems have generally needed to use Large-scale Generation Certificates. Unlike STCs, which are commonly applied as an upfront discount, LGCs are created progressively based on the electricity generated.
Expanding STC eligibility to systems up to 1 MW will make the financial benefit more immediate and simplify the process for many medium-scale commercial projects.
The Australian Government has provided the following indicative examples:
The actual STC value will depend on the installation date, system size, location, certificate market and final eligibility requirements.
The expansion is aimed at medium-sized energy users with large rooftops or available ground space, including:
Sites with high daytime electricity use are generally well suited to commercial solar because more of the generated power can be used directly by the business.
A larger STC discount improves the business case, but commercial solar still needs to be properly matched to the site.
Before recommending a system, MyEnergy reviews:
Installing the largest possible system is not always the right answer. The system should be sized around how and when the business uses power.
Battery storage can be included where it provides a clear operational or financial benefit.
Depending on the site, a commercial battery may help:
Solar-only and solar-plus-battery options should be compared using the business’s actual load profile.
Although the expanded scheme is expected to commence on 1 October 2026, commercial projects can take time to develop.
The process may include:
Starting early allows the project to be properly assessed and positioned for the expected STC expansion.
MyEnergy Engineering has delivered commercial solar, battery storage and remote power projects across Australia and the South Pacific since 2010.
Our in-house team manages system design, engineering, installation and commissioning. We focus on reliable systems designed around the site’s current operation and future power requirements.
If your business is considering a solar system between 100 kW and 1 MW, now is a good time to begin reviewing the opportunity.
Contact MyEnergy Engineering to arrange a commercial solar assessment.
The expanded Small-scale Renewable Energy Scheme is expected to commence on 1 October 2026, subject to the necessary regulations being in place. Final eligibility and certificate values will depend on the confirmed scheme requirements.