Commercial Solar Changes From 1 October 2026: What Queensland Businesses Need to Know

1 October 2026 is approaching, bringing an important proposed change for larger commercial solar projects in Australia.

The Australian Government intends to expand the Small-scale Renewable Energy Scheme (SRES), allowing eligible solar PV systems above 100kW and up to 1MW to access Small-scale Technology Certificates (STCs).

For Queensland businesses considering a larger commercial solar installation, this could significantly reduce the upfront cost of going solar.

Here's what businesses should know ahead of the proposed changes.

What's Changing on 1 October?

Currently, solar systems larger than 100kW sit outside the traditional small-scale solar STC framework.

Under the proposed changes, eligible new commercial solar systems above 100kW and no more than 1MW will be brought into the SRES.

Instead of relying on Large-scale Generation Certificates (LGCs), eligible systems in this range will be able to create STCs using a five-year deeming period.

The government estimates the expansion could reduce upfront installation costs for eligible commercial, industrial and agricultural solar projects by around 20%.

How Much Could Businesses Save?

The potential incentive becomes particularly significant as commercial solar system size increases.

Government modelling provides examples of approximately:

• $68,000 off a 250kW solar system
• $136,000 off a 500kW solar system

These figures are government estimates rather than guaranteed discounts. The actual value of STCs can vary, and every commercial solar project needs to be assessed individually.

For businesses that previously limited a project to around 100kW because of the incentive structure, the changes could make it worthwhile reassessing whether a larger commercial solar system better suits the site's electricity consumption.

Which Queensland Businesses Could Benefit?

The expanded commercial solar incentive is aimed particularly at mid-sized solar installations on sites such as:

• Warehouses and logistics centres
• Manufacturing facilities
• Farms and agricultural businesses
• Retail and commercial buildings
• Schools
• Hospitals
• Community facilities

Businesses with large roof areas and significant daytime electricity consumption can be particularly well suited to commercial solar because more of the electricity generated can potentially be consumed directly on site.

Does Every System Between 100kW and 1MW Qualify?

No.

The size of the solar system alone will not determine eligibility.

The government has outlined requirements including a maximum new system size of 1MW, a maximum combined capacity of 1MW when expanding an existing system, relevant installer and product accreditation, electrical safety compliance, planning approvals and network connection requirements. Final eligibility remains subject to the new regulations being in place.

This is another reason businesses should work with an experienced commercial solar installer rather than choosing a system based purely on the available incentive.

Should You Automatically Install a Bigger Solar System?

No.

The new commercial solar incentive may improve the economics of systems above 100kW, but your system should still be sized around your business.

Before deciding between a 100kW, 250kW, 500kW or larger commercial solar system, consider:

• Current electricity consumption
• Daytime energy demand
• Operating hours
• Available roof space
• Network requirements
• Export limitations
• Future business expansion
• Planned EV charging
• Potential battery storage

Installing additional capacity simply because it qualifies for an incentive doesn't necessarily deliver the best return.

The goal is to determine how much commercial solar your business can actually use effectively.

What About Commercial Battery Storage?

Commercial battery storage should be assessed separately from the proposed mid-scale solar expansion.

There is already federal support for eligible small-scale batteries under the Cheaper Home Batteries Program, including for businesses, with eligible battery systems from 5kWh to 100kWh able to receive an upfront discount under the SRES.

Whether solar and battery storage should be installed together depends on the site's energy profile.

Businesses with substantial daytime electricity demand may already consume much of their solar generation directly, while battery storage may provide additional value for businesses looking to manage peak demand, store excess generation or improve energy resilience.

Don't Wait Until October to Start Planning

The proposed changes commencing on 1 October don't mean a large commercial solar system can necessarily be designed and installed immediately.

Commercial projects can involve energy analysis, site assessments, engineering, network applications, approvals, system design and installation planning.

In fact, the Clean Energy Regulator notes that previous analysis indicates systems between 100kW and 1MW can take at least eight months from design to approval.

So if your business is considering commercial solar, October 1 should be viewed as an opportunity to start or progress the conversation, rather than a reason to wait.

Commercial Solar Installation in Brisbane & South East Queensland

Open Electrical designs and installs tailored commercial solar systems across Brisbane and South East Queensland.

We assess your site's electricity consumption, daytime demand, available installation space and future energy requirements before recommending a commercial solar system size.

With the proposed SRES expansion approaching, businesses considering systems above 100kW have an opportunity to reassess what commercial solar could look like for their site.

Considering commercial solar for your Queensland business? Speak with the Open Electrical team about your site, energy usage and the upcoming October 2026 changes.