What commercial solar incentives are available in Victoria?

For many Victorian businesses, the two key upfront certificate pathways are the Victorian Energy Upgrades (VEU) Commercial and Industrial Solar activity for qualifying 30-200 kW systems and the federal Small-scale Renewable Energy Scheme (SRES), which creates Small-scale Technology Certificates (STCs).

The federal boundary changed on 1 October 2026. Eligible solar PV systems from 100 kW to 1 MW can now use the expanded mid-scale SRES pathway. These mid-scale systems receive a fixed five-year STC deeming period.

This means a project above 100 kW should no longer automatically be treated as an LGC project. The certificate pathway, project timing and interaction with other incentives should be checked against the current rules.

1. Victorian Energy Upgrades support for qualifying 30-200 kW systems

Victoria's C&I Solar activity covers eligible non-residential solar systems from 30 kW to 200 kW. Systems must be installed through an accredited provider and meet the activity's technical and network-connection requirements.

The activity creates Victorian Energy Efficiency Certificates (VEECs). The dollar discount is not fixed because certificate prices fluctuate.

System sizeVictorian Government indicative discount*
50 kW$4,550
75 kW$6,860
100 kW$9,100
150 kW$25,760
200 kW$34,300

*Published examples use a $70 VEEC price. They are indicative only and are separate from any federal certificate benefit for which the project is eligible.

Key requirements include a non-residential premises, 30-200 kW PV capacity, at least 30 kVA inverter capacity, a relevant DNSP connection, one solar PV system per NMI for the activity, and an end-user-accessible monitoring portal.

2. Federal SRES and STCs

STCs provide an upfront certificate benefit for eligible renewable-energy installations. The certificate entitlement depends on factors including system capacity, location and installation date. The right to create the certificates is commonly assigned to an agent or retailer in return for an upfront discount.

For conventional small-scale solar installed in 2026, the deeming period is five years. The deeming period then declines annually toward the scheduled end of the scheme in 2030.

A commercial quote should identify the estimated certificate quantity and the assumed certificate price rather than presenting the resulting deduction as if it were a permanent equipment discount.

3. What changed for 100 kW to 1 MW solar?

From 1 October 2026, eligible mid-scale solar PV systems from 100 kW to 1 MW can create STCs under the expanded SRES. The Clean Energy Regulator applies a fixed five-year deeming period to eligible mid-scale systems installed from 1 October 2026 through 2030.

The CER says applications to create mid-scale STCs are expected to open in mid to late November 2026. Eligible installations can date from 1 October, but applications cannot be lodged until the required CER systems and processes open.

Participants in the 100 kW-1 MW range can choose between the upfront STC pathway and participation in the Renewable Electricity Guarantee of Origin (REGO) framework. Choosing STCs affects the ability to create REGO certificates during the deeming period, so larger businesses should consider certificate strategy rather than simply selecting the largest immediate discount.

Use the new mid-scale solar STC calculator

The Clean Energy Regulator now provides a dedicated calculator for approximate STC entitlement on mid-scale solar systems between 100 kW and 1 MW. This is particularly useful when comparing proposals because it separates the expected certificate quantity from the dollar value a retailer or certificate agent places on those STCs.

QUOTE CHECK

Ask the installer to show the system capacity used in the calculation, estimated number of STCs, assumed dollar value per STC and resulting certificate deduction. Then compare those assumptions with the CER calculator.

Open the Clean Energy Regulator mid-scale STC calculator ↗

What if the project started before the new rules?

The CER has published transitional guidance for projects that were already being planned or progressed before the expanded SRES regulations took effect. If a project was underway before the regulations were made but the system is installed on or after 1 October 2026, do not assume either eligibility or ineligibility based only on when the quote or contract was signed.

The CER says businesses with transition-related eligibility concerns should raise them as early as possible and no later than one week after applications for mid-scale systems open. This is especially important for projects originally designed around the previous large-scale certificate pathway.

Read the CER transitional guidance ↗

4. When might another certificate pathway apply?

Businesses should not assume every available certificate can be stacked on the same generation. Larger or customised Victorian projects can also warrant investigation under VEU project-based activities and measurement-and-verification pathways.

At the federal level, mid-scale project owners should consider the choice between upfront STCs and REGO participation. Existing accredited large-scale systems remain subject to their applicable large-scale arrangements.

For larger corporate projects, renewable-energy reporting, contracting and certificate ownership can be commercially important. Decide who owns the certificates before the contract assigns those rights to another party.

How do the rules look for different project sizes?

Illustrative projectWhat to check in 2026-27
50 kWPotential VEU Part 47 eligibility plus conventional SRES/STCs. Victorian Government indicative VEU example: $4,550 at a $70 VEEC price.
100 kWPotential VEU eligibility. Check the exact SRES classification and approved system capacity rather than relying on a rounded proposal size.
150 kWPotential VEU eligibility and within the expanded federal mid-scale SRES range. Victorian Government indicative VEU example: $25,760 at a $70 VEEC price. Confirm how the two schemes interact for the actual project.
200 kWAt the upper boundary of the standard VEU C&I solar activity and within the federal mid-scale range if eligible. Government indicative VEU example: $34,300 at a $70 VEEC price.
500 kWOutside standard VEU Part 47 but potentially eligible for mid-scale STCs. Consider project-based VEU opportunities separately where appropriate.
1 MWAt the upper boundary of the expanded mid-scale SRES. Confirm exact eligibility, component and installation requirements, certificate strategy and network approval before relying on an incentive figure.

Can a business receive the federal battery discount?

Eligible businesses can use the federal solar-battery STC program where the battery and installation satisfy the scheme rules. Eligible battery systems have nominal capacity from 5 kWh to 100 kWh, while certificate support is calculated on up to the first 50 kWh of usable capacity.

From 1 May 2026 the support is tapered by usable capacity: the first 14 kWh receives the full applicable factor, the next 14 kWh receives 60%, and usable capacity above 28 kWh through 50 kWh receives 15%.

Read the commercial battery guide ↗

How should incentives appear in a commercial solar quote?

Ask for the base installed price before certificate deductions, then require each incentive assumption to be shown separately. That makes it much easier to compare competing proposals and exposes the risk if certificate values or eligibility assumptions differ.

  • Base installed project price before certificate deductions.
  • Estimated VEEC quantity and VEEC price used, where applicable.
  • Estimated solar STC quantity and assumed STC price.
  • Battery STCs shown separately where storage is included.
  • Who receives and owns each certificate created by the project.
  • Whether selecting one certificate pathway prevents participation in another.
  • What happens to the contract price if certificate eligibility changes.
  • Whether GST is included in all displayed figures.

Tax depreciation and accounting treatment are separate from energy certificate schemes and should be checked with the business's accountant or tax adviser.

Plan the rest of the project

Sources and further reading

Editorial references checked: 16 October 2026

Source labels identify who published each reference, not an independent endorsement. Confirm current requirements and exact product terms before purchasing.