Mid-Scale Solar Is Now Law
The expansion of the Small-scale Renewable Energy Scheme (SRES) to cover mid-scale solar has now moved from announcement to confirmed regulation. The Renewable Energy (Electricity) Amendment (Mid-scale Solar) Regulations 2026 have formally expanded SRES eligibility to solar PV systems between 100kW and 1MW, installed from 1 October 2026.
Here's what's now confirmed, and what businesses need to have in place.
The two schemes behind it
Australia's Renewable Energy Target (RET) is made up of two separate schemes:
The Large-scale Renewable Energy Target (LRET), which supports big renewable power stations like wind and solar farms through large-scale generation certificates (LGCs).
The Small-scale Renewable Energy Scheme (SRES), which provides an upfront discount on smaller systems, like rooftop solar, solar water heaters and batteries, through small-scale technology certificates (STCs).
Under the new policy, mid-scale solar systems (100–1000 kW) move from the LRET to the SRES, and the rebate is now paid as a simple one-time upfront payment.
Who this applies to
The expansion is designed for business sites:
Commercial and industrial buildings, including warehouses and logistics centres
Farms and agricultural processing sites
Schools, hospitals and community facilities
What's confirmed
Eligible size range: above 100kW, up to a maximum of 1MW
Effective date: systems installed on or after 1 October 2026
Deeming period: the STC factor for mid-scale solar is based on a fixed 5-year deeming period, running each year to 2030
Expansions count: for sites with an existing solar PV system, the 1MW cap applies to the combined total capacity on one site or adjoining sites
What needs to be in place to qualify
Eligibility isn't automatic. To claim STCs for a mid-scale system, a few requirements need to be met:
Installer and product accreditation under the SRES
A written installer statement, including confirmation that planning requirements have been met (designer and retailer statements aren't required for mid-scale systems)
Compliance with state and territory electrical safety regulations, which determines the official installation date for SRES purposes
All local, state, territory and Commonwealth planning and approval requirements met
Compliance with relevant network connection agreements
Written evidence provided to the Clean Energy Regulator confirming planning and approvals have been complied with, including engineer reports and network connection agreements
Getting these sorted early in the project avoids delays further down the track when it's time to actually claim the certificates.
Why it matters
Expanding SRES to mid-scale solar is intended to make solar more affordable for businesses and community organisations that were previously stuck between LRET and SRES. In practice, that means:
Lower upfront costs for solar installations in the 100kW to 1MW range
Reduced electricity bills and lower operating expenses
Better use of available roof space for businesses in the commercial, agricultural, education and healthcare sectors, etc.
Source
This article is based on information published by the Department of Climate Change, Energy, the Environment and Water. For full eligibility details and legislative references, refer to the department's page directly.