Big News for Queensland Businesses & Farms: Solar Rebate Extended to Systems Up to 1MW
On 5 August 2026, Federal Climate Change and Energy Minister Chris Bowen announced a major expansion of the Small-scale Renewable Energy Scheme (SRES). The eligible system size for the upfront solar discount is increasing from 100 kW to 1 MW — a tenfold jump.
This change, expected to start from 1 October 2026 (subject to regulations), is designed to unlock the “missing middle” of commercial and agricultural rooftop solar. Businesses, farms, manufacturers, logistics centres, schools, hospitals and community organisations can now access the same style of point-of-sale discount that has helped one in three Australian homes install solar.
What the Change Actually Means
Until now, systems larger than 100 kW generally fell under the more complex Large-scale Renewable Energy Target (LRET) and Large-scale Generation Certificates (LGCs). Those certificates are paid over time and carry more uncertainty.
From 1 October 2026, systems up to 1 MW will qualify for Small-scale Technology Certificates (STCs) under the proven SRES. This delivers a simple, upfront discount of around 20% off installation costs, applied directly by your installer.
The government estimates:
- Approximately $68,000 off a 250 kW system
- Approximately $136,000 off a 500 kW system
- Up to around $232,000 off an 850 kW system
A 250 kW system is expected to generate roughly 345 MWh per year and could save a medium-sized business about $50,000 annually on electricity. Larger systems scale accordingly.
Real Benefits for Queensland Sites
Queensland’s excellent solar resource makes these mid-scale systems particularly attractive. Warehouse roofs, farm sheds, manufacturing facilities, retail centres and community buildings that were previously too large for the simple rebate can now take advantage of the same mechanism used by homes.
Key advantages include:
- Lower upfront capital cost
- Faster payback periods
- Reduced exposure to rising electricity prices
- On-site generation that eases pressure on the grid
- Stronger cash flow for growth and employment
The government is also asking the Australian Energy Market Commission to streamline network connection approvals for these mid-scale systems — addressing a long-standing barrier for commercial projects.
How the Rebate Works in Practice
The SRES creates STCs based on the system’s expected generation until the end of 2030. Your installer (if accredited) assigns those certificates at the point of sale and passes the value on as an immediate discount. You do not need to claim anything yourself.
Eligibility requirements remain similar to the existing scheme: approved panels and inverters, installation by a properly accredited designer and installer, and compliance with Australian standards. Systems can be new installations or expansions of existing ones, provided the total capacity stays at or below 1 MW under the new rules.
Because the scheme uses the existing certificate market, it is expected to be budget-neutral for the government.
Why This Matters for South-East Queensland Businesses
Whether you operate a logistics warehouse on the Sunshine Coast, a manufacturing site in Brisbane, or a farm shed further afield, the economics of solar have just improved significantly. Many commercial roofs that were previously “too big” for the simple rebate are now firmly in range.
At Rudd Family Builders & Solar we have been designing and installing solar systems across South-East Queensland for more than 16 years. As a family-owned, QBCC-licensed business with deep roots in both building and renewable energy, we specialise in quality commercial and agricultural installations that deliver reliable long-term performance in Queensland conditions.
We handle the full process — site assessment, system design, network applications, installation and after-care — so you can focus on running your business while capturing the new rebate.
Ready to Explore Your Options?
The expanded scheme is expected to open on 1 October 2026. Planning and design work can begin now so your project is ready to proceed as soon as the regulations are in place.
If you have a commercial, industrial or agricultural site and would like a no-obligation assessment of what a system up to 1 MW could deliver under the new rebate, get in touch with the Rudd Family team.
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๐ Upfront Cost Reduction: Cuts commercial installation costs by ~20%.
๐ฐ Estimated Savings: Up to ~$68,000 off a 250 kW system and ~$232,000 off an 850 kW system.
๐ญ Targeted Facilities: Cold storage, factories, pack houses, schools, logistics warehouses, and agricultural operations across SEQ.
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