Climate Change and Energy Minister Chris Bowen will announce an expansion of the Small-scale Renewable Energy Scheme that cuts the up-front cost of installing solar systems for businesses, farmers and other commercial users. The move lowers the price of solar at schools, supermarkets, factories and farm buildings by about 20 per cent, but only after the state decides which scale of energy access gets a boost and which one stays stuck behind the paperwork.
Who Gets the Break
Speech excerpts seen by the ABC say retailers could save almost $70,000 installing a 250kW solar system, while a large retail complex or logistics warehouse could save more than $230,000 on an 850kW system. The scheme itself will be lifted from 100 kilowatts to one megawatt. That’s the apparatus at work: a government program deciding who gets cheaper access to energy infrastructure and who has to keep paying the old price until the next round of approval.
The government said the move comes after households and businesses took up batteries in droves after the introduction of the Cheaper Home Batteries Program in 2025, which allowed a subsidy worth about 30 per cent of the up-front cost of a system to be claimed. The program has breathed new life into residential solar installations, which began to lag last year but have since picked up, and almost 4.5 million households now have rooftop solar. The numbers are big. So is the gap between those who can get on the grid’s good side and those still waiting for the system to loosen its grip.
What the Minister Wants
In the speech, Bowen will say that many residential solar panels are visible from an aeroplane over a capital city, but very few can be seen on industrial buildings. He will say, “The missing middle is mid-scale solar,” and, “Factories, warehouses, farming sheds and large industrial premises — big, empty roof space ripe for solar generation.” He will also say, “The technical rooftop potential for solar on commercial, industrial and agricultural rooftops could exceed 80 gigawatts. That's an opportunity we should miss no longer,” and, “This isn't just about energy bills, it's good for productivity, freeing up capital to invest back in their business.”
That’s the language of managed access. The roofs are there. The potential is there. The state still gets to decide how fast it moves, who qualifies, and which businesses can turn sunlight into savings without getting tangled in the machinery of approval.
Bowen will also ask the Australian Energy Market Commision to ensure network providers approve commercial and industrial solar more quickly. The request points straight at the bottleneck. Even when the panels are ready and the money is lined up, the network still stands as a gatekeeper.
Red Tape and the People Stuck With It
See Saw Wine business development manager Maggie Jarrett said the New South Wales Central Coast winery has installed 30kW of solar across three farms and is looking to add more. She said, “Red tape has been a massive barrier for us and just trying to understand the complexity behind that red tape, when you are an agricultural business, is difficult, especially small and medium businesses.”
She also said, “A 20 per cent reduction is a massive amount when you're looking at 1-megawatt solar panel developments, probably enough, as well, to enable that kind of business case to your banks to be able to get loans,” and, “I think the other piece is that it's indicating that the government supports this sort of development, which always makes financial people kind of put their ears up and say, 'Hey, if the government's backing it, there's probably more opportunity in this space.'”
There it is in plain language. Banks listen when the state nods. Businesses move when the paperwork and financing line up. Everyone else gets to wait for the next announcement.
Smart Energy Council policy head Rob Potter called the expansion a “game changer,” particularly when coupled with the government's battery subsidy program, and said, “Adding solar to commercial and industrial rooftops is the equivalent to 10 coal-fired power stations.” He added, “When small and medium businesses can permanently slash their own electricity bills … then they'll increase their profits, their competitiveness and create more jobs.”
Australian Conservation Foundation climate policy advisor Annika Reynolds welcomed the announcement but said increasing renewable energy uptake was not enough on its own. She said, “The Albanese government isn't nailing it when it comes to fossil fuel exports, but on the domestic renewables front it's just about bang on,” and, “However, pressing down on the accelerator for renewables alone is unlikely to get Australia to 82 per cent renewables by 2030, which is what we need for a safe climate and an energy independent grid.” She urged the Albanese government to “explore every possible lever to firming up the closures of remaining coal and gas clunkers in Australia.”
The whole setup runs on managed reform, subsidies, and approvals. Some roofs get cheaper panels. Some businesses get relief. The networks still control the pace, the banks still decide who gets financed, and the state still frames access to energy as a favor handed down from above.