A major change is coming for Australian businesses considering commercial solar.

The Australian Government has announced plans to expand the Small-scale Renewable Energy Scheme (SRES) to include eligible mid-scale solar PV systems above 100kW and up to 1MW.

The changes are intended to apply to eligible systems installed from 1 October 2026, subject to the required regulations being in place.

For businesses across Western Australia with larger rooftops and significant electricity consumption, this could open up new opportunities to invest in larger commercial solar systems.

What Is Changing?

Currently, solar PV systems exceeding 100kW generally sit outside the Small-scale Renewable Energy Scheme and can instead be eligible for support through the Large-scale Renewable Energy Target.

Under the announced changes, the SRES will expand to include eligible solar PV installations above 100kW and no greater than 1MW.

This is particularly relevant to properties such as:

• Warehouses and logistics centres

• Manufacturing and industrial facilities

• Farms and agricultural processing sites

• Schools

• Hospitals

• Community facilities

• Larger commercial properties

These are businesses and organisations that often have significant roof space and daytime electricity consumption but require considerably more generation capacity than a typical small commercial solar system.

How Will the Expanded SRES Work?

Eligible mid-scale solar installations will be able to receive Small-scale Technology Certificates (STCs).

The Government has confirmed that the STC factor applying to mid-scale solar will be based on a five-year deeming period each year through to 2030.

To qualify, installations will also need to meet eligibility requirements, including:

• A maximum system size of 1MW for new installations

• A maximum combined capacity of 1MW when expanding an existing system

• Installer and product accreditation requirements

• Relevant state and territory electrical safety requirements

• Planning approvals where required

• Network connection requirements

The final eligibility criteria remain subject to the new regulations being put in place.

What Does This Mean for WA Businesses?

For businesses considering systems larger than 100kW, the expansion could significantly change the way a commercial solar investment is structured.

Rather than limiting a system to remain within the existing SRES threshold, businesses may have greater flexibility to design a solar system around their actual electricity consumption, available roof space and long-term energy requirements.

For businesses with substantial daytime electricity demand, larger rooftop solar systems can help reduce the amount of electricity purchased from the grid and provide greater control over long-term energy costs.

Commercial Solar Is Getting Bigger

The change also reflects a broader shift in Australian solar.

Data from the Clean Energy Regulator shows that solar system sizes have been increasing. In the first quarter of 2026, Australia installed a record 791MW of small-scale solar capacity, up 21% compared with the same quarter in 2025.

The average small-scale system size also reached 10.3kW, while installations between 15kW and 40kW accounted for 22% of installations, compared with 14% a year earlier.

Businesses and households are increasingly looking beyond simply generating solar power and considering how solar, battery storage, EV charging and smarter energy management can work together.

Why Businesses Should Start Planning Now

The intended commencement date is 1 October 2026, but commercial solar projects can require significant planning before installation begins.

Depending on the size and complexity of the project, this can include:

• Analysing electricity consumption

• Site and roof assessments

• System design

• Engineering

• Network applications and approvals

• Equipment selection

• Battery storage considerations

• Installation planning

Businesses considering a larger commercial solar project can start assessing their requirements now and determine whether the upcoming SRES expansion may be relevant.

Quality System Design Still Matters

Greater access to incentives doesn’t change one of the most important principles of commercial solar: bigger isn’t automatically better.

A commercial solar system should be designed around how the business actually consumes electricity.

At Green Wave Solar, we consider electricity consumption, available roof space, operating hours, future growth and opportunities for battery storage when designing commercial renewable energy solutions.

Our focus is on selecting quality products and designing systems for reliable, long-term performance rather than simply installing the largest possible system.

Commercial Solar with Green Wave Solar

Green Wave Solar is a WA-owned and operated renewable energy company based in the South West, delivering residential, commercial and off-grid solar and battery solutions across Western Australia.

Our experienced electricians work across projects of varying size and complexity, combining premium renewable energy technology with quality installation and ongoing support.

With significant changes to commercial solar incentives on the horizon, now is a good time for WA businesses to understand what the expanded SRES could mean for their site.

If you’re considering commercial solar, speak with the Green Wave Solar team about your electricity usage, site and future energy requirements.

Source: https://www.dcceew.gov.au/energy/renewable/target-scheme