Australia is preparing to expand its rooftop solar incentive program to support larger commercial, industrial and agricultural solar projects, aiming to unlock the country’s significant unused rooftop energy potential.
The government plans to extend the Small-scale Renewable Energy Scheme (SRES) to rooftop solar systems up to 1MW, with the updated policy expected to take effect from October 1, 2026.
Supporting Business Solar Adoption
Australia’s Climate Change and Energy Minister Chris Bowen said the policy expansion will help more businesses replace fossil fuel-based electricity with solar power, reducing energy costs and supporting the country’s clean energy transition.
Under the current SRES framework, many large commercial buildings, warehouses, factories and agricultural facilities are not eligible for incentives because the program was mainly designed for residential solar systems.
The expanded scheme is expected to reduce installation costs for commercial solar projects by around 20%. A 250kW rooftop system could receive an upfront discount of approximately AUD 68,000, while an 850kW system could save around AUD 232,000.
Unlocking a Large Rooftop Solar Market
Australia already has one of the world’s largest residential rooftop solar markets, with household installations reaching about 22GW. However, commercial and industrial rooftop solar capacity remains much lower at around 5.6GW.
Government estimates suggest Australia’s commercial and agricultural rooftops have more than 80GW of solar potential, creating a major opportunity for future renewable energy growth.
Faster Grid Approvals Needed
Alongside expanding financial incentives, the government is also considering reforms to speed up grid connection approvals for larger rooftop solar projects.
The Australian Energy Market Commission (AEMC) has been asked to review current processes and reduce delays that have slowed the development of commercial-scale solar installations.
Industry groups welcomed the move, saying commercial rooftop solar could become a major source of clean electricity and help reduce pressure on Australia’s traditional energy system.
Gamko energy, Worldwide Energy and Manufacturer, is a professional solar module manufacturer with a 10-year experience in production and quality control since 2008.