Australia Expands Renewable Scheme to One Megawatt
The government has increased the maximum capacity for systems covered by the small-scale renewable energy scheme.
Updated on Oct. 22, 2026 in Energy
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Effective 1 October 2026, the Australian federal government has expanded the small-scale renewable energy scheme to include systems up to 1 megawatt. This policy change aims to incentivise commercial and industrial energy production through a discount of approximately 20% for eligible systems.
Why it matters
Businesses across Australia are increasingly seeking to generate and store their own power to reduce reliance on grid electricity. By lowering costs for larger solar installations, the government supports the transition toward self-sufficient, localised energy production.
The expansion provides an approximate 20% discount on eligible systems, which can result in significant financial benefits such as $50,000 in annual electricity cost savings. A typical 250-kW system now benefits from a $68,000 reduction in capital costs.
The players
Trina Solar
This global company manufactures solar products and has shipped over 350 GW of generation capacity since 1997.
The details
The updated programme allows businesses to pair solar panels, such as new models with 24.4% efficiency, with battery storage to reduce grid pressure. Trina Solar, which has shipped over 350 GW of generation capacity globally since 1997, is expanding its industrial offerings to meet this growing demand for onsite consumption.
Timeline
1997: Trina Solar was founded.
August 2026: The government announced the expansion of the small-scale renewable energy scheme.
1 October 2026: The expansion of the scheme took effect.
29 October 2026: The All Energy Australia conference commences in Melbourne.
The Big Picture
The shift toward larger commercial and industrial systems marks a departure from a residential-focused market, where system sizes have recently fallen below 10 kW. This change signals a paradigm shift where industrial participants become primary drivers of domestic renewable generation.
The scheme offers mid-scale certificates with a steady value through 2028, providing predictable financial incentives for business owners. Companies in Australia, as well as those in markets like Fiji and Papua New Guinea, can now better offset the costs of solar and battery integration.
The takeaway
The expansion encourages businesses to pair solar modules with battery storage to improve energy independence. By adopting these systems, industrial operators can effectively lower their long-term electricity expenditure.
What happens next
The All Energy Australia conference is scheduled to commence in Melbourne on 29 October 2026.
Further reading
Learn more about the latest developments in the sector on the Australia Energy page.
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