The eligibility ceiling for solar under the Small-scale Renewable Energy Scheme has expanded. For businesses considering a larger rooftop system, the 1 October 2026 change is worth understanding before comparing proposals.
The eligibility ceiling for solar under the Small-scale Renewable Energy Scheme has expanded. For businesses considering a larger rooftop system, the 1 October 2026 change is worth understanding before comparing proposals.
I would treat this as a change to the incentive pathway, not a reason to fill every available square metre with panels. A larger eligible system still needs a workable connection and a sound business case.
Source: Clean Energy Regulator's announcement.
The Clean Energy Regulator's announcement says eligible solar capacity under the scheme has increased from 100 kW to 1 MW for systems installed from 1 October 2026.
The regulator expects applications for the new mid-scale pathway to open in mid-to-late November. Eligibility starting and applications opening are different dates.
The announcement is not a fixed cash rebate for every business. The system, installation date, supporting evidence and applicable scheme rules determine what can be claimed. A quote should make its incentive assumptions explicit.
A warehouse that runs during daylight may use solar differently from a venue with evening demand. Review interval data across operating days, weekends and quieter seasons before choosing capacity.
The solar system should be assessed against useful consumption, permitted exports, roof constraints and the tariff. A bigger nameplate rating does not automatically produce a better return.
Where demand is concentrated outside solar hours, battery storage may be worth modelling separately. Include its cost and operating strategy rather than assuming storage is a compulsory part of a larger solar installation.
The incentive change does not waive network requirements. Export constraints, electrical protection, metering and connection studies can affect scope and timing.
The roof needs its own assessment too: structure, access, drainage, shading, fire requirements and future replacement plans. A tenancy introduces questions about permission, lease length and who owns or benefits from the equipment.
I would want these issues visible before an incentive is used to create urgency. A project that needs substantial electrical or structural work should not be compared with a simple installation on headline panel capacity alone.
Ask for the assumed consumption profile, expected generation basis, treatment of exports and a clear breakdown of installation scope. The incentive calculation should identify which pathway and timing it relies on.
If heating and cooling, refrigeration or vehicle charging is changing, include the future loads carefully. Do not count speculative growth as though it is already contracted demand.
My recommendation is to assess the property and the business together. The new threshold creates options, but some businesses will still be better served by a smaller system, staged work or building improvements first.
Research checked 6 October 2026. Project plans and policy timelines may change. The linked sources distinguish announcements, proposals and operating results.
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