Commercial Solar

Commercial Solar Rebates in Australia: Every Incentive for Businesses in 2026

If you run a business and you are considering solar, the incentives available right now are genuinely significant. Federal STCs, state-based certificate schemes, and the instant asset write-off can combine to cover 30–45% of your total system cost. Here is every incentive worth knowing about.

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Written by Jay
·February 2026·8 min
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Commercial solar rebates in Australia work differently from residential ones, and they are often more generous in total dollar terms. A typical 30kW rooftop system for a small business can attract $7,500–$9,500 in federal STCs alone, before you factor in state programs and tax benefits. Yet many business owners I speak to have no idea these incentives exist, or they assume the “solar rebate” is only for households.

It is not. Businesses of all sizes can access the same federal STC scheme as residential customers, and several states run commercial-specific programs on top. Let me walk you through every incentive available right now.

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Federal STCs: The Big One (Systems up to 100kW)

The Small-scale Technology Certificate (STC) scheme is the primary federal incentive for commercial solar. It applies to systems up to 100kW in capacity, which covers the vast majority of small-to-medium business installations. Warehouses, retail shops, offices, cafes, workshops: if your system is under 100kW, you qualify.

STCs work by crediting your system for its expected electricity generation over the remaining “deeming period” until the scheme ends in 2030. In 2026, that is approximately 5 years of deemed generation. Your installer typically handles the STC paperwork and applies the value as an upfront discount on your quote.

The number of STCs scales with system size, so commercial systems generate substantially more certificates than a residential 6.6kW setup. A 30kW system in Sydney creates roughly 200–250 STCs depending on zone. At current spot prices of around $37–$39 per certificate, that translates to approximately $7,500–$9,500 off the purchase price.

The catch: this rebate shrinks every year as the deeming period shortens, and it disappears when the scheme ends in 2030. For the full timeline, see our STC rebate phase-out guide.

The Instant Asset Write-Off: Your “Tax Rebate”

This is the incentive that many business owners overlook because it does not appear on your solar quote. Under the instant asset write-off, eligible businesses can deduct the full cost of a solar system (after the STC discount) in the financial year it is installed, rather than depreciating it over multiple years.

For a business paying the 25% company tax rate, a $50,000 solar system (net of STCs) effectively costs $37,500 after the tax deduction. At the 30% rate for larger companies, the effective cost drops to $35,000. That is a significant reduction that stacks on top of the STC rebate you have already received.

Eligibility thresholds and conditions change with federal budgets, so speak to your accountant before committing. We cover the details in our instant asset write-off guide for solar.

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Worked example: 30kW system for a small business

  • Gross system cost: ~$35,000–$42,000
  • Less STC rebate: ~$7,500–$9,500
  • Net cost before tax: ~$27,500–$32,500
  • Less instant asset write-off (at 25% tax rate): ~$6,875–$8,125
  • Effective out-of-pocket: ~$20,625–$24,375

That is roughly 30–42% off the sticker price, before any state incentives.

State-by-State Commercial Solar Incentives

On top of federal STCs and the tax write-off, several states run their own programs that create additional value for commercial solar installations. These vary significantly in structure and generosity. Here is what is available as of February 2026.

StateProgramHow it worksTypical value
NSWEnergy Savings Scheme (ESS) + Peak Demand Reduction Scheme (PDRS)These schemes exist but standard commercial solar PV is not a straightforward eligible activity. Businesses may be able to access certificates through certain pathways. Check with your installer.Varies. Ask your installer.
VICVictorian Energy Upgrades (VEU)Creates Victorian Energy Efficiency Certificates (VEECs) for commercial solar installations. Certificates are traded on the open market.$1,500–$4,000+ depending on system size
QLDVarious business energy programsQueensland has had various business energy programs (including the now-ended Business Energy Savers program). Check the Queensland Government website for current offerings.Check QLD Gov website
SARetailer Energy Productivity Scheme (REPS)REPS primarily covers energy efficiency measures and battery/VPP connections. Solar PV is not a directly eligible activity, but may benefit indirectly through retailer-offered packages.Indirect. Ask your retailer.
WANo state programWA does not currently offer a state-level commercial solar rebate. Businesses rely on federal STCs and the instant asset write-off.Federal incentives only

State programs change frequently. Eligibility criteria, funding caps, and certificate values fluctuate with market conditions and government budgets. The information above was last verified in February 2026. For the latest on all state programs, see our complete rebates guide.

A Closer Look: NSW and VIC Certificate Schemes

The NSW and Victorian programs deserve extra attention because they are certificate-based, meaning your installer can trade them for cash value that reduces your upfront cost. They work similarly to STCs but are administered at the state level.

In NSW, the Energy Savings Scheme and Peak Demand Reduction Scheme create tradeable certificates for eligible energy upgrades. However, standard commercial solar PV is not a straightforward eligible activity under these schemes. Businesses may be able to access certificates through certain pathways, but this is not guaranteed. Ask your installer whether ESC or PRC value is included in your quote and how they qualify.

In Victoria, the Victorian Energy Upgrades (VEU) program generates VEECs (Victorian Energy Efficiency Certificates) for commercial solar. The value of VEECs fluctuates with the certificate spot market, but for a 30kW commercial install, the VEU contribution is typically worth $1,500–$4,000. Some installers absorb this into their pricing and others list it separately, so ask your installer to break it out.

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Systems Over 100kW: LGCs Instead of STCs

If your business needs a system larger than 100kW, the rules change. You no longer qualify for STCs. Instead, your system generates Large-scale Generation Certificates (LGCs) under the Renewable Energy Target.

The key difference: LGCs are earned annually based on actual generation, not claimed as an upfront discount. You receive one LGC for every megawatt-hour (MWh) your system generates. LGC prices have dropped significantly in recent years and currently sit around $4–$6 per certificate. A 100kW system generating approximately 150 MWh per year would earn roughly $600–$900 annually in LGC revenue at current prices.

This is a different financial model. You pay the full system cost upfront (minus the instant asset write-off) and recoup LGC income over time. For large commercial and industrial installations, this can still be attractive, but it requires more capital upfront than an STC-eligible system under 100kW.

How to Maximise Your Commercial Solar Rebates

Getting the most out of available incentives comes down to timing, sizing, and paperwork. Here is what to keep in mind.

Install before January 2027. The STC deeming period drops by one year every January. A 30kW system installed in 2026 generates roughly 20% more STCs than the same system installed in 2027. That is thousands of dollars in lost rebate value. Read more in our STC phase-out guide.

Size your system below 100kW if possible. A 99kW system qualifies for STCs (a large upfront discount). A 101kW system does not. If your roof can support 110kW but you can live with 99kW, the STC-eligible system may actually deliver better financial returns despite being slightly smaller.

Time the install within your financial year. To claim the instant asset write-off in the current tax year, the system must be installed and ready for use before 30 June. If you are planning a large system, start the process early. Commercial installations take 4–8 weeks from quote acceptance to commissioning, and longer if you need a grid connection upgrade.

Ask your installer about state certificates. Not all installers automatically pass on ESC, VEEC, or PDRS certificate value. Some pocket it, some discount it off your quote, and some leave it as a separate line item. Ask explicitly what certificate value your quote includes.

Understand your depreciation options. If your system is too large for the instant write-off, the ATO depreciation rules still let you claim the cost over time. The simplified depreciation pool for small businesses is often the fastest route.

Farmers get extra advantages. Agricultural businesses often qualify for additional primary producer tax concessions on top of the standard write-off. Our farm solar guide covers the specific rebates and tax benefits available to farming operations.

Frequently Asked Questions

What is the main federal rebate for commercial solar?expand_more

The main federal incentive is the Small-scale Technology Certificate (STC) scheme, which applies to commercial solar systems up to 100kW. For a 30kW system in 2026, the STC rebate is worth approximately $7,500–$9,500, applied as an upfront discount on your installation cost. The rebate decreases every year and the scheme ends in 2030.

Can businesses claim the instant asset write-off for solar?expand_more

Yes. Eligible businesses can deduct the full cost of a solar system in the financial year it is installed. At a 25% company tax rate, a $50,000 solar system effectively costs $37,500 after the deduction. This stacks with the STC rebate. Check with your accountant for current eligibility thresholds. See our instant asset write-off guide for details.

What happens if my system is larger than 100kW?expand_more

Systems above 100kW do not qualify for STCs. Instead, they generate Large-scale Generation Certificates (LGCs), which are earned annually based on actual generation rather than claimed upfront. The revenue model is different: no big upfront discount, but ongoing income from certificate sales. Many businesses choose to size their system at or just below 100kW to retain STC eligibility.

Which states offer additional commercial solar rebates?expand_more

Victoria has the Victorian Energy Upgrades (VEU) program, which creates tradeable certificates for commercial solar. NSW has the Energy Savings Scheme and Peak Demand Reduction Scheme, though standard commercial solar PV is not a straightforward eligible activity. Queensland has had various business energy programs, so check the Queensland Government website for current offerings. South Australia’s REPS primarily covers energy efficiency and battery/VPP connections, with solar PV potentially benefiting indirectly through retailer packages. WA does not currently have a state-level commercial solar incentive. Visit our rebates page for the latest details.

How much can a business save by combining all incentives?expand_more

Combining federal STCs and the instant asset write-off, a business can reduce the effective cost of a commercial solar system by 30–45%. For a 30kW system with a gross cost of $38,000, total incentive value can reach $12,000–$17,000 depending on your state and tax position. Some state programs may add further value. See our commercial solar cost guide for detailed pricing.

Sourcesexpand_more
  • linkClean Energy Regulator (CER) - STC registration data, deeming period schedules, zone ratings, and certificate spot pricing
  • linkAustralian Taxation Office (ATO) - Instant asset write-off eligibility, thresholds, and depreciation rules for business assets
  • linkNSW Government - Energy Savings Scheme and Peak Demand Reduction Scheme program guidelines
  • linkEssential Services Commission Victoria - Victorian Energy Upgrades program and VEEC creation rules
  • linkQueensland Government - Business energy programs and current offerings

The next step

If you have any questions about the information in this guide, feel free to get in touch:

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Written by

Jay

Solar Evangelist

Passionate about making solar simple and accessible for every Australian household. Jay breaks down complex energy topics into practical advice so homeowners can make confident decisions about solar, batteries, and energy independence.

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