Australia Expands SRES To Support Up To 1 MW Rooftop Solar Systems For Businesses And Farms

The Australian Government has announced a major expansion of the Small-scale Renewable Energy Scheme (SRES) to support larger rooftop solar installations for businesses, farms and community organisations. The reform is expected to reduce the upfront cost of medium-sized solar systems by around 20%, helping commercial and industrial energy users lower electricity bills and increase the use of renewable energy.

Under the expanded scheme, the maximum eligible solar system size will increase from 100 kW to 1 MW. This will allow businesses, agricultural operations, schools, hospitals and community facilities to install solar systems up to ten times larger than the current limit. The change is designed to better match the electricity requirements of medium and large energy users while making greater use of commercial rooftops.

Australia already has a strong residential rooftop solar market, with around 22 GW installed. However, businesses have installed only about 5.6 GW, according to the Institute for Energy Economics and Financial Analysis, with much of this capacity coming from systems below 100 kW.

The government expects the reform to encourage solar adoption among manufacturers, farmers, retailers, transport and logistics companies and other commercial users. Generating more electricity at the point of consumption could also reduce pressure on electricity networks and help manage periods of high demand.

The expansion is also expected to improve access to affordable renewable energy in regional and remote areas. Alongside the financial support, the government plans to improve network connection processes for mid-scale solar projects through targeted regulatory changes and improvements to the existing framework.

Minister for Climate Change and Energy Chris Bowen said the reform would extend the benefits already experienced by millions of Australian households to larger electricity users. He said expanding eligibility to systems of up to 1 MW would help businesses reduce power bills, invest in growth and support job creation.

Financial support will continue to be provided through renewable energy certificates generated by eligible installations and traded through the market. The SRES is administered by the Clean Energy Regulator and operates separately from state-based renewable energy rebate programs.

According to government estimates, a 250 kW solar installation could receive a discount of around $68,000, while a 500 kW system could receive approximately $136,000 in support.

A 250 kW system installed at a medium-sized business could generate about 345 MWh of electricity annually and potentially save around $50,000 in electricity costs each year. A larger 850 kW system could produce approximately 1,173 MWh annually and deliver estimated yearly electricity savings of around $175,000.

The government expects the SRES expansion to be budget neutral, with additional compliance costs estimated at only $1 to $2 annually. The expanded scheme is expected to commence on October 1, 2026, subject to the required regulations being put in place.