SRES Solar Eligibility Expansion: 100kW to 1MW for Australian Commercial Projects

Key Takeaways

• On 5 August 2026, the Australian Government announced its intention to expand Small-scale Renewable Energy Scheme (SRES) eligibility for solar PV systems.
• The proposed expansion would increase the eligible capacity range from 100kW to 1MW.
• This change is explicitly "subject to regulations being made" and is not yet a final rule.
• The expansion is intended for mid-scale solar installations from 1 October 2026, with applications opening mid to late November 2026.

What is the SRES eligibility expansion for solar PV?

On 5 August 2026, the Australian Government announced its intention to expand the eligibility for solar PV systems under the Small-scale Renewable Energy Scheme (SRES) from the current 100kW limit up to 1MW. This significant change, however, is "subject to regulations being made" and is not yet a confirmed policy in effect. The expansion is aimed at mid-scale commercial solar installations, not typical household rooftop systems.

What is actually going on

The Small-scale Renewable Energy Scheme (SRES) is an Australian Government initiative designed to encourage the uptake of renewable energy. It does this by creating Small-scale Technology Certificates (STCs), which are a form of financial incentive. Historically, SRES eligibility for solar PV systems has been capped at 100kW.

The announced expansion signals a potential shift to include much larger solar PV installations, up to 1MW, within the SRES framework. This would allow commercial and industrial businesses installing larger solar systems to benefit from STCs, which can provide an upfront discount on the cost of their system if they assign the right to create STCs to a registered agent.

However, it is crucial to understand that this is an announced intention. The Clean Energy Regulator (CER) explicitly states that the expansion is "subject to regulations being made." This means the specific rules and conditions for this expanded eligibility are not yet finalised or legally binding. Businesses planning installations should monitor official updates from the CER closely.

Key Dates and Capacity Ranges for the Proposed Expansion

The Australian Government's announcement outlines specific dates and capacity ranges for the intended SRES eligibility expansion:

These dates are contingent on the necessary regulations being made. Until then, the current eligibility rules remain in force. The expansion specifically targets solar PV systems with capacities between 100kW and 1MW, which are typically found in commercial, industrial, or agricultural settings, rather than residential properties.

What this means for commercial and mid-scale solar projects

For businesses considering or planning mid-scale solar PV installations between 100kW and 1MW, this announced expansion represents a potential opportunity for significant financial support through STCs. If the regulations are made as intended, these larger systems could become eligible for the same incentive mechanism that currently supports smaller installations.

The ability to claim STCs could substantially reduce the upfront capital cost of a commercial solar project, making the investment more attractive and improving its return on investment. This could accelerate the adoption of renewable energy in the commercial sector, contributing to Australia's broader renewable energy targets.

However, given the "subject to regulations being made" clause, project developers and business owners should proceed with caution. While the intention is clear, the final details of eligibility, application processes, and any specific requirements for systems in this new capacity band are yet to be published. It is advisable to factor in the uncertainty until the regulations are formally enacted.

For more information on how STCs generally work, you can refer to our guide on cheaper home batteries rebate explained Australia, which covers the STC mechanism. You can also learn about which batteries qualify for cheaper home batteries Australia.

What you can check yourself, and what you cannot

As a business owner or project developer, you can verify the Australian Government's announcement regarding the SRES eligibility expansion by checking the official Clean Energy Regulator (CER) website. The CER is the scheme administrator for the Small-scale Renewable Energy Scheme (SRES) and is the authoritative source for updates.

What you cannot check yourself, at this stage, are the final regulations that will govern this expansion. Since the changes are "subject to regulations being made," the specific legal framework, detailed eligibility criteria, and any new application requirements are not yet published. You cannot assume the expansion is a guaranteed, in-force policy until the regulations are formally enacted.

What the published sources do not tell you

The Clean Energy Regulator's announcement clearly states that the SRES eligibility expansion from 100kW to 1MW is "subject to regulations being made." This means that the specific legal instruments, detailed rules, and any new administrative processes required to implement this change are not yet available.

While the announcement provides key dates such as the intended application date of 1 October 2026 and application opening in mid to late November 2026, these are also contingent on the regulations being finalised. The published sources do not provide the content of these forthcoming regulations, nor do they detail any potential changes to the STC calculation methodology or compliance requirements for systems within the new 100kW to 1MW band.