Australia is planning to expand the Small-scale Renewable Energy Scheme (SRES) to support rooftop solar systems of up to 1 MW, targeting commercial, industrial and agricultural buildings. The expanded scheme is expected to take effect on October 1, 2026.

Climate Change and Energy Minister Chris Bowen said the policy would help more businesses switch from fossil fuels to solar, reduce electricity costs and unlock Australia’s largely untapped commercial rooftop solar market.

According to government estimates, the expanded scheme is expected to reduce the installation costs of solar PV systems for commercial, industrial and agricultural buildings by around 20%. For example, a 250 kW rooftop solar system could receive an upfront incentive of approximately A$68,000, while an 850 kW system could save around A$232,000.

Bowen added that these systems would help businesses reduce their annual electricity costs. The government will also ask the Australian Energy Market Commission (AEMC) to consider rule changes requiring network operators to process commercial and industrial solar connection applications more quickly, reducing the barriers businesses face when seeking grid connection approval for larger-scale projects.

Australia currently has approximately 22 GW of residential rooftop solar, compared with only 5.6 GW of commercial and industrial installations. However, the technical potential of commercial, industrial and agricultural rooftops is estimated to exceed 80 GW.The government is also considering faster grid connection approvals for commercial and industrial solar projects to reduce delays and accelerate deployment.

The Smart Energy Council welcomed the announcement, highlighting the significant potential of unused warehouse, factory and agricultural rooftops to contribute to Australia’s clean energy transition.The SRES expansion could open a major new growth opportunity for Australia’s commercial and industrial solar market.