Commercial Solar Incentives Queensland: 100kW to 1MW Changes

For Queensland businesses considering commercial solar, a significant change to Australia's solar incentive scheme is approaching.

The Australian Government has announced plans to expand the Small-scale Renewable Energy Scheme (SRES) so eligible solar PV systems above 100kW and up to 1MW can access Small-scale Technology Certificates (STCs).

The change is intended to apply from 1 October 2026, subject to the final rules and regulations being in place.

For businesses with significant energy consumption, this could change the financial case for investing in a larger commercial solar system.

The Australian Government estimates the expanded scheme could reduce the upfront installation cost of eligible commercial, industrial and agricultural solar systems by around 20%.

But the incentive is only part of the picture.

The right commercial solar system should be designed around how your business actually uses electricity, the site's electrical infrastructure and the return you want to achieve over time.

What Is Changing for Commercial Solar From October 2026?

Currently, the SRES generally supports eligible solar PV systems up to 100kW.

Larger systems have instead fallen under the Large-scale Renewable Energy Target and may be eligible to create Large-scale Generation Certificates (LGCs).

Under the proposed changes, eligible solar PV systems above 100kW and up to 1MW will be able to access SRES support and create STCs, subject to the final rules.

That opens the scheme to larger commercial solar installations suitable for:

• Warehouses
• Manufacturing facilities and factories
• Retail and shopping centres
• Agricultural businesses
• Logistics facilities
• Schools and community facilities
• Other commercial and industrial properties with significant daytime energy demand

For Queensland businesses that have previously sat between small commercial solar and much larger projects, the change could create a new opportunity.

How Could the New Commercial Solar Incentive Reduce Upfront Costs?

STCs provide a financial incentive based on eligible renewable energy generation and can effectively reduce the upfront cost of an eligible solar system.

Under the proposed mid-scale expansion, eligible systems above 100kW and up to 1MW will receive STCs based on a five-year deeming period each year through to 2030.

The Australian Government estimates the expansion could lower upfront installation costs for eligible commercial, industrial and agricultural solar systems by around 20%.

It has also provided indicative examples of approximately $68,000 of support for a 250kW commercial solar system and approximately $136,000 for a 500kW commercial solar system.

These are estimates rather than guaranteed savings. Actual outcomes will depend on the individual project and applicable certificate arrangements.

For Queensland businesses comparing commercial solar costs, a reduction in upfront capital requirements could make a meaningful difference to the project's financial case.

Is a Bigger Commercial Solar System Automatically Better?

No.

Access to an incentive for a larger commercial solar system doesn't mean every business should install the largest system its roof can accommodate.

The system should be designed around the site's actual energy requirements.

Before recommending a commercial solar system, factors that should be considered include:

• Current electricity consumption
• Daytime energy demand
• Electricity tariffs
• Available roof space
• Existing electrical infrastructure
• Switchboard capacity
• Network connection requirements
• Export limitations
• Future business growth
• Potential battery storage requirements

A warehouse operating primarily during daylight hours can have a very different energy profile from a business with substantial evening or overnight consumption.

That's why commercial solar design should start with the business's energy requirements, not simply the maximum possible system size.

100kW, 250kW, 500kW or 1MW: What Size Commercial Solar System Does Your Business Need?

Commercial solar systems vary significantly in size.

A smaller commercial property may find a 100kW system or less appropriate, while a warehouse, manufacturing facility or larger commercial site could require several hundred kilowatts of solar capacity.

The proposed SRES expansion creates additional opportunities for projects between 100kW and 1MW, but determining the right size still requires understanding when and how the site consumes electricity.

For example, the Australian Government estimates a 250kW commercial solar system could generate around 345MWh of electricity annually, while an 850kW system could generate around 1,173MWh annually.

Actual generation will vary depending on location, system design, orientation, equipment, shading and other site specific factors.

The goal isn't simply to generate the most solar possible.

It's to design a commercial solar system that makes financial and operational sense for the business.

Commercial Solar ROI: Look Beyond the Incentive

The new commercial solar incentive may reduce upfront costs, but businesses should still assess the complete commercial solar return on investment and payback period.

One of the biggest advantages for commercial properties is that many businesses consume substantial amounts of electricity during daylight hours, when the solar system is generating.

Using solar energy directly on site can reduce the amount of electricity that needs to be purchased from the grid.

When assessing commercial solar ROI, businesses should consider:

• Current annual electricity costs
• Daytime electricity consumption
• Expected solar generation
• Self consumption of generated solar
• Electricity tariffs and demand charges
• System cost after applicable incentives
• Maintenance and system lifespan
• Future electricity requirements

A well designed commercial solar system should be based on the site's actual consumption and expected return rather than simply the incentive available.

What About Commercial Battery Storage?

Commercial battery storage can also form part of a broader business energy strategy, but it shouldn't automatically be added to every commercial solar project.

Whether battery storage makes financial and operational sense depends on the business's load profile, electricity tariffs, peak demand, operating hours, backup requirements and how excess solar generation could otherwise be used or exported.

For some businesses, maximising direct consumption of solar during operating hours may be the priority.

For others, commercial battery storage may provide additional opportunities for energy management, peak demand reduction or backup power.

Solar and battery storage should therefore be considered as part of the site's overall electrical and energy requirements rather than as separate products.

Who Could Benefit From the New Commercial Solar Incentive?

The expanded SRES is intended to support mid-scale solar across commercial, industrial, agricultural and community sites.

This could include manufacturers, farmers, retailers, logistics centres, schools, hospitals and community organisations.

For businesses across Brisbane and South East Queensland, the changes could be particularly relevant for sites with:

• Large commercial rooftops
• Significant daytime electricity consumption
• Warehouses or manufacturing facilities
• High ongoing electricity costs
• Plans for future expansion
• Existing commercial solar systems that may need expanding

The proposed rules also allow for expansions of existing systems, provided the combined capacity meets the relevant requirements, including the proposed 1MW maximum.

Should Queensland Businesses Start Planning Now?

Yes, particularly because larger commercial solar projects generally require more planning than a standard residential installation.

A commercial solar project may involve a site assessment, energy consumption analysis, electrical design, structural considerations, network connection requirements and relevant approvals before installation can begin.

Systems of this scale can also have considerably longer design and approval timelines.

So the proposed 1 October changes shouldn't be viewed as a reason to wait until October to start investigating commercial solar.

Businesses considering a 100kW, 250kW, 500kW or larger commercial solar system can begin assessing their energy requirements, site suitability and potential project economics now.

Commercial Solar Installation in Brisbane and South East Queensland

At Open Electrical, we're electricians first.

We design commercial solar and electrical solutions around the requirements of each individual site rather than taking a one size fits all approach.

That means considering the property's electrical infrastructure, electricity consumption, business objectives, appropriate system size, network requirements and potential future energy needs before recommending a solution.

Open Electrical works with businesses across Brisbane, the Sunshine Coast, Gold Coast and wider South East Queensland, providing commercial solar and electrical solutions designed around real world energy requirements.

Whether you're considering commercial solar for a warehouse, factory, retail property or another commercial site, our team can assess the property and determine what system size and design makes sense for your business.

With the proposed expansion of commercial solar incentives approaching, now is a good time for Queensland businesses to understand what the changes could mean for a future project.

Considering commercial solar for your business?

Get in touch with Open Electrical for a tailored commercial solar assessment.

Frequently Asked Questions

What is changing for commercial solar on 1 October 2026?

The Australian Government plans to expand the Small-scale Renewable Energy Scheme so eligible solar PV systems above 100kW and up to 1MW can create STCs. The change is intended to apply from 1 October 2026, subject to the final rules and regulations.

How much could the new commercial solar incentive save?

The Australian Government estimates the expanded scheme could reduce upfront installation costs for eligible mid-scale commercial, industrial and agricultural solar systems by around 20%. Actual costs and incentive values will vary between projects.

Will a 250kW commercial solar system be eligible?

Under the proposed changes, eligible systems above 100kW and up to 1MW will be able to access the expanded SRES, subject to the final eligibility and compliance requirements.

Will a 500kW commercial solar system be eligible?

A new 500kW commercial solar system sits within the proposed above 100kW to 1MW capacity range, but the installation will still need to satisfy the final SRES eligibility and compliance requirements.

Can an existing commercial solar system be expanded?

The proposed rules include expansions to existing systems, with a maximum combined capacity of 1MW, subject to the relevant eligibility requirements.

Is commercial solar worth it for a Queensland business?

It depends on the site's electricity consumption, operating hours, electricity tariffs, available roof space, installation cost and expected solar generation. Businesses with 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.

How long does a commercial solar project take?

Larger commercial solar projects can require significantly more planning than residential installations. Timelines can depend on system size, electrical and structural requirements, network approvals, site complexity and other project specific requirements.

Does Open Electrical install commercial solar in Brisbane?

Yes. Open Electrical provides commercial solar and electrical solutions across Brisbane, the Sunshine Coast, Gold Coast and wider South East Queensland.

Does Open Electrical install commercial solar for warehouses and factories?

Yes. Open Electrical can design commercial solar solutions for warehouses, factories and other commercial and industrial sites based on the property's electricity consumption, electrical infrastructure and project requirements.