

Commercial solar rebates Australia businesses can access can substantially reduce the upfront cost of investing in renewable energy. However, there is no single nationwide cash rebate covering every commercial solar installation. Instead, businesses need to consider federal certificate schemes, state programs, tax treatment and, increasingly, incentives that combine solar with battery storage.
Australia's incentive landscape is also changing. In particular, the Australian Government announced in August 2026 that it intends to extend the Small-scale Renewable Energy Scheme to eligible mid-scale solar systems between 100 kW and 1 MW from 1 October 2026, subject to the necessary regulations being in place.
Consequently, businesses considering a new installation should assess not only the cost of solar but also installation timing, system capacity and the interaction between available incentives.
Unlike a simple cashback offer, many Australian solar incentives operate through renewable energy certificates.
The federal Renewable Energy Target currently incorporates two schemes. Eligible smaller systems can create Small-scale Technology Certificates, while qualifying large-scale renewable energy systems can create Large-scale Generation Certificates. Importantly, a system generally cannot claim benefits under both schemes for the same generation.
| Incentive | Current application | Main benefit |
| Small-scale Technology Certificates | Eligible solar PV systems up to 100 kW | Commonly converted into an upfront installation discount |
| Large-scale Generation Certificates | Eligible accredited large-scale systems | Certificates created from renewable electricity generation |
| Victorian Energy Upgrades | Eligible Victorian commercial and industrial solar | Additional upfront solar discount |
| NSW business battery incentive | Eligible NSW business battery installations | Battery discount, with greater support when combined with new solar |
| Instant asset write-off | Eligible small businesses and qualifying assets | Immediate tax deduction where relevant rules are satisfied |
Because eligibility differs, businesses should verify the rules applying to their project before approving a quote.
Small-scale Technology Certificates are one of the most widely available incentives for commercial solar.
Under current Renewable Energy Target rules, an eligible solar PV system must have a rating of no more than 100 kW and annual electricity output of no more than 250 MWh to participate in the Small-scale Renewable Energy Scheme.
The value of the certificates usually appears as a discount on the solar installer’s quote rather than as money businesses need to claim separately after installation. This arrangement makes the incentive particularly useful for reducing upfront project costs.
The exact benefit varies according to factors such as system capacity, installation location, certificate entitlement and the market value assigned to STCs.
For businesses comparing solar proposals, therefore, it is important to determine whether the quoted price is before or after the STC benefit. Otherwise, two apparently different quotes may not provide a fair comparison.
A significant change has been announced for larger commercial installations.
The Australian Government intends to expand SRES eligibility to eligible solar PV installations with total onsite capacity between 100 kW and 1 MW from 1 October 2026. However, as at September 2026, the Clean Energy Regulator states that this remains subject to the necessary regulations being in place.
Under the proposed arrangements, qualifying mid-scale installations will be able to create STCs rather than relying solely on the existing LGC framework. Eligible mid-scale installations are intended to receive STCs based on a five-year deeming period for systems installed from 1 October 2026 through 2030.
This development is particularly relevant to warehouses, manufacturers, agricultural operations, shopping centres and other organisations considering systems above 100 kW.
Businesses planning projects around this threshold should confirm the final regulations and commencement requirements before relying on the proposed incentive in an investment decision.
Large-scale Generation Certificates have traditionally supported larger commercial renewable energy projects.
Instead of receiving the entire certificate benefit upfront, an accredited power station can create LGCs based on eligible renewable electricity generated. The certificates can then have a commercial value in the renewable energy market.
This distinction can affect project cash flow. STCs generally provide a more immediate capital-cost benefit, whereas LGCs depend on actual renewable electricity generation and certificate creation.
The announced SRES expansion may change the preferred pathway for some new projects between 100 kW and 1 MW. Existing accredited large-scale systems, however, are expected to remain within current LRET arrangements and continue to be eligible to create LGCs.
Businesses should therefore model the available certificate pathway alongside expected electricity savings rather than assessing the solar system purely on its headline installation cost.
Federal incentives are only part of the picture. Some states provide additional support.
Victoria has expanded the Victorian Energy Upgrades program to provide upfront incentives for solar PV installations at commercial and industrial premises.
Eligible Victorian businesses and other non-residential sites can access discounts for qualifying systems between 30 kW and 200 kW. Systems need to meet program requirements and must be installed through appropriately accredited VEU providers.
The Victorian Government has previously indicated that discounts could reduce the upfront cost of a 100 kW installation by up to $25,000 and a 200 kW system by up to $34,300. Actual project benefits depend on eligibility and project circumstances.
Importantly, the former Solar for Business Program has closed. Businesses should therefore avoid relying on older information about rebates and interest-free loans offered under that program.
NSW businesses have another opportunity when combining commercial solar with energy storage.
From 1 September 2026, eligible NSW businesses can access an upfront battery installation discount. Indicative discounts are approximately 30 to 40 per cent when a battery is installed together with new or additional solar, compared with approximately 20 to 30 per cent for an eligible battery-only installation.
The battery capacity must generally be between 20 kWh and 30 MWh, alongside other eligibility requirements. Furthermore, to receive the higher combined incentive, new solar capacity must be installed within 90 days before or after the battery installation.
This creates an opportunity for businesses to assess solar and storage as one integrated investment rather than separate projects.
Solar incentives should also be considered alongside applicable business tax deductions.
The Australian Government has made the $20,000 instant asset write-off permanent from 1 July 2026. Small businesses with aggregated turnover of up to $10 million may immediately deduct the business portion of eligible assets costing less than $20,000, subject to the relevant tax rules.
However, a commercial solar project does not automatically qualify simply because a business is eligible for the scheme. Asset costs, structure, timing and tax treatment matter.
Businesses should obtain professional tax advice before including tax deductions in a solar investment model.
A rebate can improve project economics, but the largest long-term benefit usually comes from generating solar electricity that the business can consume onsite.
Before proceeding, businesses should analyse electricity consumption, interval meter data, operating hours, available roof or ground space, network connection requirements and potential export constraints.
System size is particularly important. Installing excessive capacity simply to obtain a larger incentive may deliver poor financial results if substantial generation has to be exported at a relatively low value.
Businesses should also compare the capital purchase model with alternatives such as a solar Power Purchase Agreement. A solar PPA can provide access to onsite renewable electricity without the business funding the full system upfront, because a third-party provider typically owns and operates the installation.
For larger organisations, integrating commercial solar with broader electricity procurement can provide a more complete energy strategy.
Before signing a solar contract, confirm the incentive rules applying to the project at the actual installation date. Businesses should also verify who receives the STCs or other certificates, whether the quoted price already incorporates incentives, whether network approval has been obtained and whether adding batteries changes available support.
Furthermore, compare projected savings using realistic electricity consumption and solar production assumptions.
An attractive rebate cannot compensate for an oversized system, poor-quality installation or unrealistic savings forecast.
Commercial solar rebates Australia businesses can access can significantly strengthen the financial case for renewable energy. STCs currently support qualifying systems up to 100 kW, while LGCs remain relevant to accredited larger installations. Meanwhile, Victoria provides additional commercial solar discounts, and NSW now offers substantial battery incentives that can become more valuable when paired with new solar.
The incentive environment is also evolving. In particular, the proposed expansion of the SRES to eligible systems between 100 kW and 1 MW from 1 October 2026 could materially change the economics of mid-scale commercial solar projects, subject to final regulatory implementation.
Energy Action can help businesses assess commercial solar alongside electricity procurement, energy usage and long-term cost strategies. By evaluating the entire energy profile rather than looking at rebates alone, businesses can identify solutions designed to improve both financial and sustainability outcomes.
Visit Energy Action to explore commercial energy solutions and determine how solar could fit into your broader energy strategy.
Australian businesses may be able to access federal STCs or LGCs, depending on the size and eligibility of their solar installation. In addition, state-based schemes can provide further support, such as Victorian Energy Upgrades for qualifying commercial solar installations. Because incentive programs and eligibility requirements change, businesses should confirm the rules applicable on the planned installation date before making an investment decision.
Yes. Under the rules applying in September 2026, eligible commercial solar PV installations of no more than 100 kW can participate in the Small-scale Renewable Energy Scheme and create STCs. The Australian Government has also announced plans to extend eligibility to qualifying systems between 100 kW and 1 MW from 1 October 2026, subject to the necessary regulations being implemented.
Currently, systems above the SRES threshold may instead qualify under the Large-scale Renewable Energy Target and create LGCs if they satisfy accreditation and other requirements. However, the announced SRES expansion is intended to allow qualifying new systems between 100 kW and 1 MW to create STCs from 1 October 2026. Businesses considering a project in this capacity range should check the final regulations before committing to an installation schedule.
Potentially. For example, eligible NSW businesses can receive a larger battery incentive when installing new or additional solar within the required timeframe, with indicative combined solar and battery discounts of approximately 30 to 40 per cent of battery installation costs. Whether multiple federal and state incentives can be combined depends on the individual programs, system specifications and eligibility conditions.
Commercial solar can still provide strong financial benefits without a direct rebate when a business has suitable daytime electricity consumption and the system is correctly sized. Solar can reduce the amount of electricity purchased from the grid and may provide greater protection against future electricity cost changes. However, businesses should assess installation costs, consumption patterns, tariffs, export limitations, maintenance and financing before calculating the expected payback period.