en.Wedoany.com Reported - Australian Federal Minister for Energy Chris Bowen has announced that the coverage of the Small-scale Renewable Energy Scheme (SRES) will be expanded from 100 kilowatts to 1 megawatt, addressing the "missing middle" in the country's energy transition. "The missing middle is medium-scale solar," Bowen said in a statement.
Bowen noted that around one-third of Australian households have installed rooftop solar, but larger energy users have been excluded from subsidies because existing solar incentives only support systems up to 100 kilowatts. Expanding the support scope is expected to unlock the potential of commercial rooftops, helping businesses cut electricity bills, invest in growth, and create jobs. Australia is one of the countries with the highest rooftop solar penetration globally, with approximately 40% of households having installed solar panels. Data from the Institute for Energy Economics and Financial Analysis (IEEFA) shows that residential solar installations nationwide total about 22 gigawatts, while the commercial side stands at only about 5.6 gigawatts. Bowen stated that commercial and industrial (C&I) and agricultural rooftop installations could add an additional 80 gigawatts of solar generation capacity.
Under the new rules, new and expanded existing systems up to 1 megawatt will be eligible for upfront-assigned certificates, no longer subject to the progressive pricing of large-scale generation certificates applied to systems above 100 kilowatts. Eligible systems are expected to maintain a five-year assignment rate until December 31, 2030, rather than following the annual degression rules for smaller systems as the scheme phases out. The expanded SRES is expected to commence on October 1, 2026, subject to the relevant regulations being in place.
The government estimates that these changes will reduce the installation cost of C&I and agricultural rooftop solar systems by approximately 20%. Installing a 250-kilowatt system could receive a discount of about AUD 68,000 (USD 48,000), while installing an 850-kilowatt system could receive a discount of about AUD 230,000.
Bowen also stated that he will call on the Australian Energy Market Commission to ensure network providers approve C&I solar projects more quickly. Rob Potter, Policy Director at the Smart Energy Council, welcomed the SRES expansion, believing it will reduce investment risk and accelerate deployment. "More than 10 million Australians have already cut their electricity bills through solar, and now it's the turn of businesses," he said.
