New Commercial Solar Rebate 2026: The SRES 1MW Expansion
Toowoomba and Darling Downs businesses can now access a federal upfront solar rebate for systems up to 1MW — ten times the old 100kW cap. Here’s exactly what changed, when it starts, what it’s worth to your business, and how to make sure you don’t leave money on the table.
10x bigger cap | ~20% off system cost | 1 October 2026 start date | $230,000+ saved on an 850kW system
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On 5 August 2026, Climate Change and Energy Minister Chris Bowen announced that the Small-scale Renewable Energy Scheme (SRES), the federal scheme that gives an upfront rebate on solar installations, will expand from a 100kW cap to a 1MW cap. From 1 October 2026 (subject to final regulations), businesses, farms, schools and community facilities installing systems up to 1MW can access an upfront discount worth roughly 20% of the system cost, instead of the slower, lower-value large-scale certificate scheme that currently applies above 100kW. The Government’s own worked examples put this at around $68,000–$70,000 off a 250kW system, and more than $230,000 off an 850kW system.
What Is the New Commercial Solar Rebate, Exactly?
The SRES has run since 2011 and is the reason around one in three Australian homes now has rooftop solar. It works by issuing Small-scale Technology Certificates (STCs) upfront at the point of installation, which installers like Excel Power sell on your behalf as a discount off your quoted price, so the saving shows up on day one, not spread out over years.
The catch, until now, has been the 100kW ceiling. That’s plenty for a house, but it locks out most factories, warehouses, farm sheds, shopping centres and schools. Anything larger than 100kW has had to rely on Large-scale Generation Certificates (LGCs) instead, which are priced lower, traded on a fluctuating market, and paid out gradually over years rather than upfront.
From 1 October 2026, that changes. Systems up to 1MW will qualify for the same upfront STC model as households, and eligible systems are expected to lock in a fixed five-year deeming rate through to 31 December 2030, avoiding the annual step-down that smaller systems face as the scheme winds down.
STC vs LGC, in one line: STCs are upfront, fixed-value certificates you cash in immediately as a discount. LGCs are lower-value certificates paid out slowly as your system generates power over years. The 1MW expansion moves your project from the second bucket into the first.
Old Scheme vs New Scheme: The Difference, Side by Side
Before 1 October 2026
✗ Systems over 100kW only earn LGCs
✗ Value paid out gradually over years, not upfront
✗ LGC price floats with the market
✗ Annual step-down as the scheme winds down
✗ Larger commercial rooftops effectively “locked out” of a real rebate
From 1 October 2026
✓ Systems up to 1MW earn upfront STCs
✓ Discount applied straight off your quoted price
✓ Roughly 20% off total system cost
✓ Fixed five-year deeming rate to 31 Dec 2030
✓ The “missing middle” of C&I and ag rooftops finally included
How Much Could Your Business Save?
These figures are drawn from the Federal Government’s own worked examples at announcement, extrapolated on a per-kW basis. Your actual rebate depends on system size, location, STC market price at installation, and your installer’s pricing — Excel Power will always confirm exact numbers before you sign anything.
System Size Typical Use Case Old Scheme (LGCs, >100kW) New Scheme (STCs, from 1 Oct 2026)
- 100kW Large retail store, medium warehouse Upfront STC rebate (unchanged — already under 100kW cap) Upfront STC rebate (unchanged)
- 250kW Mid-size warehouse or processing facility Spread over years via LGCs, lower total value ≈ $68,000–$70,000 upfront (Government estimate)
- 500kW Large distribution centre, ag processing shed Spread over years via LGCs, lower total value ≈ $135,000–$140,000 upfront (estimated, pro-rata)
- 850kW Large retail complex or logistics warehouse Spread over years via LGCs, lower total value More than $230,000 upfront (Government estimate)
- 1MW Maximum eligible system size under the new cap Not eligible for upfront STCs at all ≈ $270,000+ upfront (estimated, pro-rata)
A quick way to think about it: on a typical 250kW–850kW commercial system, the new upfront rebate can cover a meaningful slice of your entire project cost before you’ve generated a single kilowatt-hour, which materially shortens your payback period and improves the return on the investment from day one.
Is My Toowoomba or Darling Downs Business Eligible?
The expansion is aimed squarely at the businesses and primary producers that make up the Darling Downs economy — the Minister specifically named factories, warehouses, farm sheds and large industrial premises as the target. You’re likely in scope if your business ticks these boxes:
- A commercial, industrial or agricultural property with unused roof space
- Sized to install a system up to 1MW
- Installed by an accredited installer using CEC-approved equipment
- For the new upfront rate above 100kW, installed on or after the scheme officially commences (expected 1 October 2026, pending final regulations)
If you’re planning a system above 100kW right now, timing matters. Installing before October locks you into the current, lower-value large-scale certificate arrangement for anything over 100kW; waiting captures the new upfront rate instead. Excel Power can model both scenarios against your business’s actual energy use so you’re not guessing, and help you decide whether it’s worth holding off.
How Excel Power Helps You Claim It
1. Site & load assessment — we review your roof space, switchboard capacity, and energy usage to size a system correctly under the new 1MW ceiling, so you’re not over- or under-building.
2. Rebate-optimised design — your system is engineered to maximise eligible STCs while matching your actual daytime demand, so the rebate and the real-world savings work together.
3. Timing strategy — if you’re on the fence about installing now versus waiting for 1 October, we’ll run the numbers both ways and tell you straight which one comes out ahead for your business.
4. Accredited installation — every install meets the standards required to qualify for the rebate, so nothing jeopardises your claim.
5. We handle the paperwork — Excel Power manages the STC assignment and rebate paperwork directly, so the discount is reflected in your price, not left for you to chase later.
6. One point of contact, start to finish — from your first site visit to your system switching on, you deal with one local team who knows this scheme inside out.
Your Path to a Rebate: What Happens Next
STEP 1 — Book a free site assessment. We come to you, walk the roof, and check your switchboard and energy profile.
STEP 2 — Get a rebate-optimised design and quote. You’ll see the system size, the estimated STC rebate, and the out-of-pocket cost, side by side.
STEP 3 — We time it right. If waiting for 1 October gets you a bigger rebate, we’ll tell you — even if it means your install date moves.
STEP 4 — CEC-accredited install. Our team installs to the standard the scheme requires, so your claim isn’t put at risk.
STEP 5 — We lodge the paperwork. The rebate is baked into your price; you don’t have to chase certificates or forms.
Frequently Asked Questions
What exactly is changing with the commercial solar rebate?
The Federal Government is expanding the Small-scale Renewable Energy Scheme (SRES) so that solar systems up to 1MW — up from the previous 100kW limit — qualify for an upfront rebate through Small-scale Technology Certificates, rather than the slower large-scale certificate scheme. It was announced by Minister Chris Bowen on 5 August 2026 and is expected to start on 1 October 2026.
When does the new 1MW rebate threshold start?
The expanded scheme is expected to commence on 1 October 2026, subject to the final regulations being finalised. Systems under 100kW already qualify for the upfront rebate today under the existing rules.
How much can a Toowoomba or Darling Downs business expect to save?
Government estimates suggest the expanded scheme cuts around 20% off the upfront cost of an eligible commercial or agricultural solar installation. Worked examples from the announcement put this at roughly $68,000–$70,000 for a 250kW system, and more than $230,000 for an 850kW system. Your exact figure depends on system size, location and the STC market price at installation — Excel Power can model this for your site.
Should I install now or wait until October 2026?
It depends on your system size. If you’re installing under 100kW, the upfront rebate already applies and there’s no reason to wait. If you’re planning a system above 100kW, installing before the scheme expands means you’ll fall under the older, lower-value large-scale certificate arrangement for the portion over 100kW — waiting until the new rules commence captures the full upfront rate instead. Talk to Excel Power about timing your project against your own energy needs.
What's the difference between an STC and an LGC?
An STC (Small-scale Technology Certificate) is a fixed-value certificate created upfront at installation and used immediately as a discount off your system price. An LGC (Large-scale Generation Certificate) is created gradually as your system actually generates electricity, priced on a floating market, and paid out over years rather than as a lump sum at install. The 1MW expansion moves eligible mid-sized systems from the LGC model into the faster, more valuable STC model.
Does the expanded scheme also cover solar batteries?
The Cheaper Home Batteries Program, which already applies to small businesses, has separately been extended so that eligible battery installations paired with solar can also earn STCs from May 2026. It runs alongside the SRES expansion rather than being part of the same 1MW cap change.
Is there a separate Queensland state rebate for commercial solar?
Queensland doesn’t currently run a dedicated cash rebate for commercial solar generation. The state’s QBEST program offers a co-contribution toward energy-efficiency upgrades like lighting and refrigeration, which works well alongside — but is separate from — the federal solar rebate.
Does my system need to be exactly 1MW to qualify?
No — any system between just over 100kW and up to 1MW is expected to qualify for the new upfront STC treatment. Systems already under 100kW continue to receive the existing upfront rebate they always have. Systems above 1MW fall outside the SRES and into separate large-scale arrangements.
What do I need to have ready before getting a quote?
A rough idea of your roof space, your recent energy bills (to show your usage pattern), and your switchboard’s capacity are the most useful starting points — but you don’t need any of this finalised. Excel Power’s site assessment covers all of it, so you can start the conversation with nothing more than an idea and an address.
Lock In Your Commercial Solar Rebate Before the Rules Change
Excel Power will assess your Toowoomba or Darling Downs property, model your rebate under both the current and expanded scheme, and design a system sized for maximum benefit — with no obligation and no guesswork.
