The 100kW Cap Is Gone: SRES Expands to 1MW
On 5 August, the federal government confirmed it will expand the Small-scale Renewable Energy Scheme from a 100kW to a 1MW eligibility cap.
The last 12 months of residential battery installs has shown what Australia's solar industry can do when the market conditions are right.
And this is the change the commercial solar market has been calling out for.
What's changing
From 1 October (pending final regulations) systems up to 1MW become eligible for STCs, with a five-year deeming rate locked in through 31 December 2030.
A system that used to earn LGC incentives spread out and exposed to market pricing now earns deemed STC value upfront.
Who is this for
This targets the "missing middle": commercial and industrial buildings too big to get meaningful value from household-scale STC pricing, and too small to attract dedicated large-scale project finance.
Warehouses and factories
Agricultural buildings and farm sheds
Schools, supermarkets, and community facilities
According to the government, that's around 80GW of potential solar generation of uninstalled rooftops.
Why it's happening now
The change follows sustained industry pressure. it’s a direct result of its "missing middle" advocacy, and it lands alongside other 2026 scheme activity, including the Solar Sharer Offer launched on 1 July.
What we don't know yet
The 1 October start date is still described as subject to the necessary regulations being finalised. The exact certificate calculation methodology, stackability with other state incentives and how existing systems in the 100kW–1MW range are treated at transition, haven't been detailed publicly yet. We'll update this as the detail lands.
Where we fit
We've been paying out incentives for installers for 19 years. With no product ties and working across multiple incentives, we can offer you the best solution based on your needs, not ours.
If you've got a system in the 100kW–1MW range, in the pipeline or already running, it's worth understanding what this means for you before October.
Get in touch and we'll walk through what it means for your specific project.
Our team is here to support you. If you have any questions, please do not hesitate to get in touch.
Tiana Bergmans
Solar Team
03 9805 0719
tiana.bergmans@greenenergytrading.com.au
