New Commercial Solar Rebate for Perth Businesses: Systems Up to 1MW
The Federal Government has announced plans to expand Australia's upfront solar discount from systems up to 100kW to commercial rooftop installations as large as 1MW. The change could substantially reduce the cost of solar for Perth warehouses, manufacturers, retailers, farms, schools and commercial property owners.
The Federal Government has announced plans to expand the Small-scale Renewable Energy Scheme from commercial solar systems up to 100kW to eligible installations as large as 1MW. The proposed change is expected to reduce the upfront cost of qualifying commercial solar projects by approximately 20%.
The expansion is intended to address Australia’s commercial solar “missing middle”: warehouses, factories, supermarkets, schools, farms and other businesses with substantial unused roof space but electricity requirements that often justify systems larger than the existing 100kW limit.
For Perth businesses, the announcement may improve the financial case for larger rooftop solar projects. The correct system size will still depend on interval electricity usage, operating hours, roof capacity, Western Power connection requirements, export limits and how much solar generation can be consumed on site.
Announcement status: ABC News reported the expansion from advance excerpts of the Minister’s National Press Club address. Businesses should not treat the proposed discount, commencement timing or eligibility as final until legislation and updated Clean Energy Regulator guidance are published.
What is changing under the proposed scheme?
The planned expansion would extend upfront solar certificates beyond small rooftop installations and make eligible mid-scale commercial, industrial and agricultural solar projects up to 1MW more accessible.
| Government example | Estimated upfront discount | Estimated annual generation | Potential annual bill reduction |
|---|---|---|---|
| 250kW commercial system | Approximately $68,000 | Approximately 345MWh | Approximately $50,000 |
| 850kW commercial system | Approximately $232,000 | Approximately 1,173MWh | Approximately $175,000 |
Is this a cash rebate for commercial solar?
The term “commercial solar rebate” is commonly used, but the proposed incentive is expected to operate through the existing Small-scale Renewable Energy Scheme rather than as a separate cash payment directly to the business.
Eligible systems create certificates
The SRES uses Small-scale Technology Certificates, generally called STCs. The number of certificates is calculated using factors such as eligible system capacity, installation location and the remaining deeming period.
The certificates have a market value
STCs can be sold through the certificate market. Their value can move over time, so the final benefit may differ from early government estimates.
The value is usually applied upfront
Solar businesses commonly arrange the certificate process and apply the assigned value as an upfront reduction in the customer’s quoted system price.
Final eligibility must be confirmed
Equipment approval, accredited design and installation, commissioning dates, documentation and other compliance conditions can affect eligibility.
The existing SRES is administered by the Clean Energy Regulator . Updated regulator guidance should be reviewed before a business relies on the expanded 1MW threshold in a purchasing or investment decision.
What could the expanded solar discount mean in Western Australia?
Perth has extensive commercial, industrial and agricultural roof space that may be suitable for larger solar installations. The proposed change could improve project economics, but it does not remove the need for careful load analysis, engineering and network approval.
Warehouses and logistics facilities
Large, relatively open rooftops can provide space for substantial solar capacity. The strongest business case usually occurs where refrigeration, automation, lighting, conveyors, charging equipment or office loads operate during solar production hours.
Manufacturing and workshops
Businesses running machinery, compressors, ventilation, cooling or process equipment during the day may be able to consume a high percentage of solar generation directly and reduce grid purchases.
Retail and shopping facilities
Daytime air conditioning, lighting, refrigeration and tenant loads can align well with solar generation. Metering arrangements and responsibility for shared electricity costs must be assessed.
Schools and community buildings
Larger roofs and predictable daytime activity can support commercial solar, although school holidays, weekend demand and seasonal load changes should be included in the modelling.
Farms and agricultural businesses
Pumps, sheds, cool rooms, processing equipment and irrigation loads may support larger solar systems. Seasonal consumption and site-specific network capacity require particular attention.
Commercial property owners
Solar may help reduce common-area costs or improve the operating profile of a property. Lease terms, tenant billing, embedded networks and responsibility for capital improvements should be resolved first.
A larger rebate does not automatically mean a 1MW system is right for your business
The most useful commercial solar design is not necessarily the largest array that fits on the roof. It is the system that appropriately matches the building, electricity profile, connection limits and financial objectives.
Australis Solar assesses:
- Recent commercial electricity bills
- Interval or NEM12 meter data where available
- Weekday, weekend and seasonal electricity demand
- Daytime solar self-consumption potential
- Demand charges and tariff structure
- Roof area, condition, pitch and orientations
- Shading, plant equipment and roof obstructions
- Main switchboard and electrical infrastructure
- Western Power connection and export requirements
- Structural, access and installation constraints
- Future battery, EV fleet or equipment requirements
Why self-consumption matters
Commercial solar generally delivers its strongest value when the business uses the generated electricity on site instead of purchasing the same energy from the grid.
Oversizing a system without considering daytime demand can increase exports without producing an equivalent financial benefit. Some commercial tariffs may offer limited export value, while network conditions may restrict the amount of energy that can be exported.
That is why accurate interval data and operational information should be reviewed before recommending a system size or estimating payback.
Australian Government guidance also recommends using interval meter data when assessing business solar because it provides a more accurate picture of when electricity is consumed. Read the Australian Government solar guide for businesses .
Three issues Perth businesses should consider before proceeding
Network connection and approval timeframes
Larger commercial solar systems can require detailed Western Power assessment, export controls, protection studies, engineering documentation or upgrades to existing electrical infrastructure.
The Federal Government has indicated it will ask the Australian Energy Market Commission to examine how commercial and industrial solar applications can be approved more quickly. However, this does not guarantee approval for a particular system capacity or export level at an individual Perth property.
Commercial battery storage
A commercial battery may help shift surplus solar into later operating periods, reduce peak grid demand, support selected loads or improve resilience during an outage.
Its value depends on the property’s electricity tariffs, peak-demand charges, operating hours, export levels, critical loads and backup requirements. Battery capacity should be modelled separately rather than added automatically because a larger solar discount is available.
Design and project readiness
Businesses should avoid selecting a generic system solely to secure a headline discount. Roof condition, structural capacity, access, switchboards, cable routes, metering, network requirements and operational demand must still be assessed.
A well-prepared project is more likely to progress smoothly once the final eligibility and implementation requirements are published.
Commercial solar designed for Perth operating conditions
Australis Solar is a Perth-based, WA-owned solar company operating since 2008. We design, install and maintain commercial solar and energy systems around the property’s actual electricity use, roof, infrastructure and operational requirements.
Usage-led system design
Recommendations are based on commercial electricity bills, interval demand, operating hours and realistic self-consumption rather than a standard package.
Property and infrastructure assessment
Roof conditions, access, switchboards, cable routes, electrical supply, inverter locations and relevant upgrade requirements are considered before the design is finalised.
WA connection requirements
The proposed system is considered against applicable Western Power, retailer, electrical and export requirements for the specific commercial property.
Installation and ongoing support
Australis Solar provides commercial system installation, monitoring support, maintenance, fault investigation and suitable upgrade pathways.
Commercial solar rebate questions for Perth businesses
What is the proposed commercial solar rebate announced in 2026?
The Federal Government has announced plans to expand the Small-scale Renewable Energy Scheme so eligible commercial solar installations up to 1MW can receive an upfront certificate-based discount. The existing solar threshold under the scheme is 100kW.
Has the commencement date been confirmed?
The ABC report outlining the proposed expansion did not confirm a commencement date. Businesses should wait for final legislation and updated Clean Energy Regulator guidance before treating the scheme timing or their project eligibility as confirmed.
How much could a Perth business save on installation?
The government has estimated that the expanded scheme could reduce eligible upfront installation costs by approximately 20%. Reported examples include an upfront reduction of almost $70,000 for a 250kW system and more than $230,000 for an 850kW system.
Actual certificate values and project costs will depend on the final rules, system design, certificate market value, electrical work, structural requirements and network conditions.
Will every commercial solar system up to 1MW qualify?
Not necessarily. Eligibility may depend on the commissioning date, approved equipment, accredited design and installation, system configuration, documentation and other scheme requirements. Network connection approval is also a separate process.
Will commercial solar approvals become faster?
The Federal Government has indicated that it will ask the Australian Energy Market Commission to address approval delays for commercial and industrial solar. The process, timing and resulting rule changes have not yet been confirmed.
Individual Perth projects will still need to meet Western Power and applicable electrical, engineering and export requirements.
Can an existing commercial solar system be expanded?
Potentially. The existing inverter capacity, panels, metering, switchboard, roof space, network connection, export controls and previous certificate claims must be reviewed. Final eligibility for an expansion will depend on the published scheme requirements.
Does a commercial battery receive the same discount?
Batteries have separate eligibility requirements. The appropriate incentive and battery design will depend on usable storage capacity, equipment approval, installation timing, electricity demand and the applicable programme rules.
How is the right commercial solar system size calculated?
The design should consider interval electricity usage, operating hours, seasonal demand, tariffs, demand charges, roof space, shading, network limits, export value and future electrical loads. The largest system that fits is not automatically the most cost-effective option.
What should I provide for a commercial solar assessment?
Provide recent electricity bills, interval or NEM12 meter data where available, the property address, operating hours and information about planned electrical loads. Roof plans, switchboard photos, site drawings and existing solar-system details are also useful.
Find out what the expanded solar scheme could mean for your Perth business
Australis Solar can assess your electricity usage, interval data, roof, switchboard, operating hours, network requirements and future energy plans before recommending an appropriate commercial solar system.
Scheme eligibility, availability, certificate value, network approval, generation and savings remain subject to final rules and the individual property.