From 1 October 2026, the Small-scale Renewable Energy Scheme (SRES) will expand to cover eligible mid-scale solar PV systems above 100kW and up to 1MW.
The change has now been formally confirm ed under the Renewable Energy (Electricity) Amendment (Mid-scale Solar) Regulations 2026.
This article explains what the change means, which systems are covered, and what requirements need to be met to claim Small-scale Technology Certificates (STCs).
What is changing?
Australia’s Renewable Energy Target (RET) currently operates through two schemes:
Large-scale Renewable Energy Target (LRET): supports large renewable energy power stations through Large-scale Generation Certificates (LGCs).
Small-scale Renewable Energy Scheme (SRES): provides an upfront incentive for eligible renewable energy systems through Small-scale Technology Certificates (STCs).
Under the new regulations, eligible solar PV systems above 100kW and up to 1MW will be able to participate in the SRES rather than the LRET.
This allows eligible mid-scale solar projects to receive their incentive through STCs as an upfront, one-time benefit.
When does the change take effect?
The new rules apply to eligible solar PV systems installed on or after 1 October 2026.
Systems must meet the applicable SRES eligibility and compliance requirements to create STCs.
What system sizes are eligible?
The expanded SRES applies to eligible solar PV systems: Above 100kW and up to a maximum of 1MW.
For sites where an existing solar PV system is being expanded, the 1MW limit applies to the combined total capacity of the systems located on the same site or adjoining sites.
What is the deeming period?
Mid-scale solar systems will use a fixed five-year deeming period for STC calculations.
The five-year deeming period will apply each year through to 2030.
This differs from the declining deeming period that applies to existing small-scale solar systems.
What types of projects may benefit?
The expansion is particularly relevant to commercial and community-scale projects, including:
Commercial and industrial buildings
Warehouses and logistics centres
Farms and agricultural processing facilities
Schools and educational facilities
Hospitals and healthcare facilities
Community facilities
Other eligible sites requiring solar systems between 100kW and 1MW
What requirements need to be met?
Eligibility for STCs is not automatic.
Mid-scale solar projects must meet the relevant SRES requirements, including: Installer and product requirements
The installer and products used for the system must meet the applicable accreditation and eligibility requirements under the SRES.
Installer statement
A written installer statement must be provided, including confirmation that applicable planning requirements have been met.
For mid-scale solar systems, separate designer and retailer statements are not required.
Electrical safety requirements
The installation must comply with applicable state or territory electrical safety regulations.
These requirements are also relevant when determining the official installation date for SRES purposes.
Planning and approval requirements
The project must comply with all applicable:
Local government requirements
State or territory requirements
Commonwealth requirements
Planning and development approvals
Network connection requirements
The system must comply with all relevant electricity network connection requirements and agreements.
Supporting evidence
Written evidence must be provided to the Clean Energy Regulator (CER) demonstrating that the applicable planning and approval requirements have been met.
Depending on the project, supporting documentation may include:
Engineering reports
Network connection agreements
Planning approvals
Other relevant compliance documentation
What should Retailers and Installers prepare?
If you are planning a mid-scale solar project for installation from 1 October 2026, it is recommended that the required approvals and supporting documents are considered early in the project.
Before lodging an STC claim, make sure you have confirmed:
The system falls within the eligible capacity range
Installer and product requirements are met
Required planning approvals have been obtained
Electrical safety requirements have been satisfied
Network connection requirements have been completed
Required installer statements are available
Supporting evidence is ready for submission where required
Preparing these documents early can help reduce delays when the project reaches the STC claiming stage.
Why does this change matter?
The expansion of the SRES is intended to make mid-scale solar more accessible to businesses and community organisations.
For eligible projects, the change may provide:
Lower upfront solar installation costs through STCs
A simpler incentive pathway for systems between 100kW and 1MW
Reduced electricity costs and operating expenses
Greater opportunities to utilise available commercial roof space
Key Dates and requirements at a glance
Item | Requirement |
Effective date | 1 October 2026 |
Eligible system size | Above 100kW and up to 1MW |
Certificate type | Small-scale Technology Certificates (STCs) |
Scheme | Small-scale Renewable Energy Scheme (SRES) |
Deeming period | Fixed 5 years |
Existing system expansions | Combined site capacity must not exceed 1MW |
Planning requirements | Applicable approvals must be met |
Network requirements | Relevant connection requirements must be met |
Supporting evidence | Required documentation must be provided where applicable |
Further information
This article is based on information published by the Australian Government Department of Climate Change, Energy, the Environment and Water (DCCEEW).
For full eligibility requirements, regulatory details and the latest government guidance, please refer to the Department’s Renewable Energy Target Scheme information.