The New Commercial Solar Rebate

Commercial Solar Rebate Hobart: What the 1MW Expansion Means for Tasmanian Businesses

From 1 October 2026, the rules around commercial solar rebates in Australia are changing in a big way — and Hobart businesses stand to benefit. The federal government is lifting the eligibility cap for the Small-scale Renewable Energy Scheme (SRES) from 100kW to 1MW, a tenfold increase that opens up upfront, certificate-based solar discounts to mid-sized commercial systems that previously missed out.

At Marshall Solar & Energy, we work with businesses across Hobart, Glenorchy, Kingston, the Huon Valley and greater Southern Tasmania to design commercial solar systems that make the most of every available incentive. Here’s what the change actually means, and how to prepare before it takes effect.

What's Changing on 1 October 2026

Right now, only commercial solar systems up to 100kW qualify for Small-scale Technology Certificates (STCs) — the mechanism that gives businesses an upfront discount on installation, rather than a rebate claimed later. Anything larger has had to go through the Large-scale Generation Certificate scheme instead, which works very differently and doesn’t offer the same immediate saving.

From 1 October 2026, that 100kW ceiling lifts to 1MW. Commercial solar systems up to 1MW — roughly 4,000 to 5,000m² of usable roof space — will qualify for the same certificate-based discount, worth approximately 20% off the installed cost of an eligible system. For context, a 1MW system is a serious undertaking: it’s the kind of installation suited to a large distribution centre, cold storage facility, or manufacturing site, not a typical shop roof.

Most Hobart businesses will land well under the new cap, which means more headroom to size a system properly rather than deliberately undersizing to stay inside the old 100kW limit.

Why This Matters More in Tasmania

Tasmania doesn’t currently run its own state-based solar rebate or interest-free loan scheme for commercial solar, so the federal SRES discount is the primary lever available to local businesses — which makes this expansion especially significant here compared with states that stack a state rebate on top.

A few things are worth knowing if you’re weighing up solar for a Hobart or Southern Tasmania site:

  • Feed-in tariff: Tasmania sets a regulated minimum feed-in tariff (8.782c/kWh for 2025–26), which tends to be more stable than the market-driven rates on the mainland.
  • Grid connection: Systems in this size range need sign-off from TasNetworks before connection, so getting your application in early is one of the biggest levers on your installation timeline.
  • Sun hours: Tasmania receives fewer sun-hours than mainland states, so system sizing and orientation matter more here — it’s part of why a proper site assessment beats a generic quote.
  • Tax treatment: The federal SRES discount can typically be used alongside instant asset write-off and accelerated depreciation, both of which reduce the after-tax cost of a commercial system further.
commercial solar system
commercial solar system

Who Benefits Most in the Hobart Region

The expanded 1MW threshold is aimed squarely at mid-sized commercial and industrial energy users who’ve historically been priced out of a meaningful rebate. Around Hobart and Southern Tasmania, that includes:

  • Warehousing and logistics operators in Glenorchy, Derwent Park and Brighton
  • Cold storage and food processing facilities
  • Primary producers and packing sheds across the Huon Valley and Coal River Valley
  • Breweries, distilleries and hospitality venues with large roof space
  • Aquaculture and agribusiness operations
  • Manufacturing and light industrial sites across greater Hobart

If your business has previously been quoted for a sub-100kW system purely to qualify for a rebate, this is a good time to revisit that sizing.

How to Prepare Before October

  • Get a site assessment. Roof space, orientation, shading and your current energy usage all determine what system size actually makes sense for your business.
  • Start your TasNetworks connection application early. Grid approval timelines are one of the main bottlenecks for larger systems, and starting early protects your place in the queue.
  • Confirm your contract terms. Make sure any quote clearly states how the STC value will be applied once the expanded threshold takes effect, rather than treated as a separate claim.
  • Talk to your accountant about stacking the rebate with instant asset write-off or accelerated depreciation for your specific business structure.

Frequently Asked Questions

When does the commercial solar rebate increase to 1MW take effect?

The expanded threshold takes effect from 1 October 2026, subject to final regulatory sign-off.

No. Tasmania doesn’t currently run a dedicated state rebate for commercial solar, so the federal SRES discount is the main incentive available to Hobart and Tasmanian businesses, alongside the state’s regulated minimum feed-in tariff.

The SRES discount is estimated to reduce the upfront installed cost of an eligible system by around 20%, delivered as a point-of-sale deduction rather than a rebate claimed after installation.

A 1MW system typically needs around 4,000–5,000m² of usable roof space, which is well beyond most standard commercial roofs — most Hobart businesses will fall comfortably under the new cap.

Yes. Systems in this size range require a grid connection application through TasNetworks, and starting that process early is one of the most important steps in keeping your project on schedule.

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