Australian solar energy regulations and incentives have seen significant updates in 2026, with the Small-scale Renewable Energy Scheme (SRES) now expanded to include mid-scale solar PV systems. This change, effective for installations from October 1, 2026, opens new avenues for businesses and agricultural facilities to invest in larger solar solutions and benefit from small-scale technology certificates (STCs).
What are the New Australian Solar Incentives for Mid-Scale Systems?
The Australian Government has broadened the eligibility for solar photovoltaic (PV) systems under the Small-scale Renewable Energy Scheme (SRES). Previously, systems larger than 100 kilowatts (kW) were only eligible to create large-scale generation certificates (LGCs) under the Large-scale Renewable Energy Target (LRET).
Under the updated arrangements, solar PV systems with a total onsite capacity ranging from 100 kW up to 1 megawatt (MW) are now eligible to create STCs. This change aims to provide greater support for larger solar PV system installations, particularly those undertaken by commercial, industrial, and agricultural facilities across Australia. The government's intention is to accelerate carbon abatement by increasing renewable electricity generation in these sectors.
It is important to note that existing arrangements for solar systems smaller than 100 kW under the SRES remain unchanged. Similarly, existing accredited large-scale systems will continue under current LRET arrangements and will still be eligible to create LGCs.
When Do the New SRES Rules for Mid-Scale Solar Apply?
The expansion of eligibility for solar PV systems under the Small-scale Renewable Energy Scheme is now legislated. The Renewable Energy (Electricity) Regulations 2011 have been amended to reflect these changes, extending the scheme's coverage from 100 kW to 1 MW.
These new rules apply to mid-scale solar systems installed from October 1, 2026. While the changes are effective from this date, applications for eligible systems are expected to open in mid-to-late November 2026. This means that if your mid-scale solar system was installed on or after October 1, 2026, you will be able to apply for STCs once the application process commences.
The Australian Government is also considering additional design, installation, and compliance requirements specifically for these mid-scale solar PV systems. It is advisable for potential participants to stay informed as further guidance and specific eligibility requirements are released by the Clean Energy Regulator.
Who Benefits from Australia's Expanded SRES?
The primary beneficiaries of Australia's expanded SRES are commercial, industrial, and agricultural facilities looking to install larger solar PV systems. This change addresses a previous gap where systems between 100 kW and 1 MW were too large for the SRES but often not large enough to efficiently benefit from the Large-scale Renewable Energy Target (LRET) and its Large-scale Generation Certificates (LGCs). By making STCs available for these mid-scale installations, the Australian government aims to encourage greater investment in renewable energy generation across a broader spectrum of enterprises, thereby contributing to Australia's overall carbon abatement goals through increased renewable electricity generation.
If you are considering a mid-scale solar installation for your business or property, it is crucial to consult with a qualified solar installer. They can provide expert advice on system design, installation, and help navigate the application process for STCs. Additionally, always confirm the latest incentive rules and eligibility criteria with the relevant government or utility bodies, as regulations can evolve.
