Government expands solar rebate to cut upfront costs for farms and businesses

At a National Press Club address, Climate Change and Energy Minister Chris Bowen announced an expansion of the Small-scale Renewable Energy Scheme, raising the size limit from 100 kW to one megawatt to bring mid-scale solar projects into the subsidy pool. The adjustment is expected to reduce upfront costs for schools, supermarkets, factories and farm buildings by roughly 20%, translating into savings of up to $70,000 for a 250 kW retail system and over $230,000 for an 850 kW warehouse.

Bowen will also request that the Australian Energy Market Commission ensure faster network-provider approvals for commercial and industrial installations. Officials highlighted that while residential rooftop solar now covers about 22 GW, commercial capacity lags at 5.6 GW, despite a technical rooftop potential exceeding 80 GW. Industry representatives, including Smart Energy Council’s Rob Potter and Australian Conservation Foundation advisor Annika Reynolds, praised the change as a potential “game changer” for productivity and emissions reduction. The move follows strong uptake of home battery subsidies introduced in 2025, which revived residential solar growth.