New federal STC eligibility for eligible solar systems up to 1 MW, combined with Victorian incentives, could make now the right time to reassess your business’s solar opportunity.
From 1 October 2026, important changes to Australia’s solar incentive framework have created a new opportunity for Victorian businesses considering larger commercial solar systems.
Eligible solar PV systems between 100 kW and 1 MW can now potentially access Small-scale Technology Certificates (STCs) under the expanded Small-scale Renewable Energy Scheme (SRES).
For Victorian businesses, this opportunity comes alongside existing support available through the Victorian Energy Upgrades (VEU) program for eligible commercial and industrial solar projects.
The result is a potentially more attractive financial proposition for businesses looking to reduce electricity costs, improve energy independence and make better use of their available roof space.
What Changed on 1 October 2026?
Previously, the federal SRES generally applied to solar PV systems up to 100 kW. Systems above 100 kW were generally considered under the Large-scale Renewable Energy Target framework and could potentially generate LGCs.
From 1 October 2026, the SRES has been expanded to include eligible mid-scale solar systems above 100 kW and up to 1 MW.
This means eligible Victorian businesses considering a larger solar installation should now reassess their project economics under the new incentive framework.
Why Is This Important for Victorian Businesses?
For a business considering a larger solar installation, the upfront cost is one of the biggest factors when deciding whether to proceed.
The new mid-scale solar arrangements can provide an additional source of financial support for eligible projects.
At the same time, Victorian businesses may also be eligible for incentives through the Victorian Energy Upgrades (VEU) program.
This creates an opportunity for businesses to look at their solar investment from both a federal and Victorian incentive perspective, while also considering the long-term savings that solar can deliver.
The Opportunity for 100–200 kW Solar Systems
Businesses considering a 100 kW, 150 kW or 200 kW solar system should now look closely at the available incentives and the potential electricity bill savings.
Depending on the project and eligibility, an eligible business may potentially benefit from:
- Federal STCs under the expanded SRES
- Victorian VEECs under the VEU program
- Significant ongoing electricity bill savings
- Reduced reliance on grid electricity
- Greater protection against future electricity price increases
- Increased use of renewable energy generated on-site
The combination of these factors can potentially improve the overall business case for installing commercial solar.
What About 200 kW to 1 MW Systems?
This is where the 1 October 2026 change becomes particularly significant.
Eligible solar systems above 200 kW and up to 1 MW can now potentially access the expanded federal STC framework.
This opens up opportunities for a much wider range of commercial and industrial businesses, including:
- Warehouses
- Manufacturing facilities
- Distribution centres
- Agricultural businesses
- Food processing facilities
- Retail businesses
- Large offices
- Schools and community facilities
- Other businesses with significant daytime electricity consumption
For larger Victorian projects, businesses should also investigate the applicable VEU p
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