The Australian Government will expand the Small-scale Renewable Energy Scheme (SRES) in a move designed to help businesses, farms, and community organisations cut energy costs and install bigger rooftop solar systems for less.
Federal Climate Change and Energy Minister Chris Bowen will announce the scheme’s expansion in a speech to the National Press Club today.
The SRES will be expanded from 100kW to 1MW, allowing businesses, farms, and community facilities to install solar systems up to 10 times larger, slashing the cost of installing medium-sized solar systems by approximately 20%.
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According to the Institute for Energy Economics and Financial Analysis, while Australia’s residential solar is sitting at 22GW, businesses have only installed around 5.6GW, with most of this being rooftop solar systems below 100kW in size.
This reform will unlock more rooftop solar for the missing middle—helping more businesses take up solar and shield their energy bills from volatile global energy markets. Lower energy costs will improve productivity and competitiveness across manufacturing, agriculture, retail, transport and logistics, with benefits flowing through to households using those goods and services.
And more energy generated where it’s used is good for the grid too—reducing the need for expensive networks and smoothing out demand peaks for all energy users.
Minister for Climate Change and Energy Chris Bowen said the expansion would help businesses and communities realise the same benefits from solar that millions of Australian households already are.
“One in three Australian homes have rooftop solar, but larger energy users have been locked out because the existing solar rebate only supports systems up to 100kW,” he said.
“We’re fixing that by expanding support to systems up to 1MW, unlocking the potential of commercial rooftops and helping businesses cut power bills, invest in growth and create jobs.
“This will help manufacturers, farmers, retailers, logistics centres, schools, hospitals and community organisations reduce energy costs— and it uses an existing, proven scheme meaning no new bureaucracy or red tape.
“More rooftop solar means lower energy costs, a stronger economy, and faster progress towards an energy system powered by Australian renewable energy.”
The news was welcomed by the Climate Council CEO Amanda McKenzie, who said, “Australia is a solar powerhouse and the Albanese Government just gave it a turbo boost.
“Australia’s warehouses, factories and barns have wide roofs with huge potential to generate home-grown power. Today the government will announced it’s expanding its solar incentives to apply larger systems. It means that a farmer or manufacturer saves on installing solar panels—then receives huge reductions in electricity bills as they generate power from sunshine.
“More than 4 million Aussie household have installed solar, slashing their bills and Australia’s pollution. This announcement allows Australian farmers and manufacturers to take control of their power.
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“Australian sunshine will now protect more and more Australian businesses from volatile global energy markets.
“For the Australia community this means less climate pollution and lower demand on the grid. It’s win win.”
The expanded SRES is expected to commence from 1 October 2026, subject to the necessary regulations being in place.
