The federal government is set to announce changes to the Small-scale Renewable Energy scheme in a bid to help businesses install solar systems and close the gap with residential take-up.
The federal government is expanding the Small-scale Renewable Energy Scheme to include systems up to one megawatt, a change projected to cut solar installation expenses by roughly 20 percent for agricultural properties, manufacturing plants, grocery stores, and educational facilities. Climate Change and Energy Minister Chris Bowen is scheduled to present the policy update at the National Press Club, pointing to a lack of mid-scale adoption across industrial rooftops.
Under current regulations, the program caps eligible installations at 100 kilowatts, a limit established when the framework began in 2011 that accommodates residential needs but restricts larger commercial spaces. Official projections indicate that implementing a 250-kilowatt setup could yield nearly $70,000 in savings for retailers, while major logistics centers or retail complexes might reduce expenses by over $230,000 using an 850-kilowatt configuration.
Australia currently features about 22 gigawatts of residential solar capacity alongside 5.6 gigawatts installed by businesses, predominantly through systems under 100 kilowatts, according to figures from the Institute for Energy Economics and Financial Analysis. Government estimates suggest the combined commercial, industrial, and agricultural rooftop potential could surpass 80 gigawatts.
Alongside the scheme expansion, Mr. Bowen will direct the Australian Energy Market Commission to streamline approval processes by network providers for commercial and industrial projects. The announcement follows the 2025 introduction of the Cheaper Home Batteries Program, which provided a subsidy covering approximately 30 percent of initial battery expenses and helped revitalize residential adoption.
Industry participants have voiced support for the policy shift, noting that high upfront costs and administrative delays have previously hindered business investment. Maggie Jarrett, business development manager at New South Wales Central West enterprise See Saw Wine, stated that a 20-percent price decrease would significantly improve financial viability when pursuing larger developments and approaching lenders.
Smart Energy Council policy head Rob Potter described the initiative as transformative, asserting that commercial and industrial solar capacity could match the output of 10 coal-fired power stations. Meanwhile, Australian Conservation Foundation climate policy advisor Annika Reynolds praised the domestic renewable push while cautioning that additional measures are required to ensure Australia reaches its goal of generating 82 percent of its electricity from renewables by 2030.
Originally reported by ABC News & Headlines – Australian Broadcasting Corporation on Aug 4, 2026.
