How much does commercial solar cost in Australia?

As a guide, commercial installations under 30kW typically range from around $0.80 to $1.10 per watt fully installed after STCs, while 30-100kW systems typically range from around $0.75 to $1.05 per watt — larger systems generally benefit from economies of scale. Final pricing varies with location, roof type, equipment tier and installation complexity, which is why comparing multiple proposals matters.

How long does commercial solar take to pay for itself?

Businesses that purchase a system outright often see payback in roughly three to five years, with the strongest returns coming from operations that use most of their power during daylight hours. The actual figure depends on your daytime consumption, electricity tariff, system price, and the assumptions used in the proposal — ask each installer to show their payback modelling clearly.

Can I claim a federal rebate plus a state grant on the same system?

In many cases, yes. The federal STC scheme is separate from state and territory grant, rebate, and finance programs, so a single commercial solar project may be eligible for both at the same time. For example, a 60kW system in some states may attract the full STC discount as an upfront price reduction and still be eligible for a separate state-funded grant or low-interest finance program on top of that. The details, caps, and eligibility windows vary by state, business type, and project scope, and a small number of programs cannot be combined with each other or with specific finance products. A strong commercial proposal should list every rebate, grant, and incentive that has been applied, the dollar value of each, and any conditions or stacking rules attached, so you can see clearly what is genuinely on offer.

Are commercial solar rebates treated as taxable income?

STC rebates are usually treated as a price reduction on the system rather than separate income, so they typically lower the capital cost of the asset for depreciation and write-off purposes rather than appearing as taxable revenue. In practice, the depreciable cost base of the system is the net price after the STC discount has been applied. LGC revenue is generally treated differently and is usually recognised as income in the year it is received from selling the certificates. Tax treatment can also depend on how the system is financed, your business structure, and the rules in force at the time of installation, so confirm the specifics with your accountant or tax adviser before relying on a particular outcome in a commercial solar proposal.

Is Commercial Solar a Good Investment? Costs, Rebates & ROI 2026

Investing in commercial solar energy in Australia has become an increasingly attractive proposition for businesses aiming to reduce operational costs, get government support, enjoy tax breaks and enhance sustainability. With the Australian government's ongoing commitment to renewable energy, a range of commercial incentives and rebates are available to support businesses in transitioning to solar power. Below we will discuss the financial viability of commercial solar investments in Australia while emphasising the significance of government rebates and incentives.

How much does commercial solar cost, and what does it save?

Electricity prices contribute a substantial portion of operational expenses for many Australian businesses, and they are only going up. In some reported cases, commercial electricity has gone up by 25% since 2023. Implementing a commercial solar system can significantly reduce these costs by harnessing renewable energy. The initial investment in solar infrastructure is offset by long-term savings on energy bills, often resulting in a decent return on investment.

For instance, a 50kW solar system, suitable for medium-sized enterprises, typically costs between $55,000 and $62,000 before the STC discount. Installed in 2026, an eligible 50kW system earns roughly 296 to 405 STCs depending on its postcode zone, worth around $12,000 to $16,000 at the STC Clearing House price of $40 per certificate. These kinds of systems can generate approximately 200 kWh per day, leading to substantial annual savings on electricity expenses. Over time, these savings can surpass the initial installation costs, making solar a financially sound investment. What was once considered a massive expense, is quickly being offset by government rebates and the solar system paying for itself over time.

What commercial solar rebates are available in 2026?

Let's look further into the government incentives and rebates that are available for businesses investing in solar energy.

To encourage the transition to renewable energy, the Australian government offers multiple financial incentives aimed at reducing the upfront costs of commercial solar installations. These initiatives make solar much more accessible for businesses, allowing them to benefit from lower energy expenses and tax breaks while contributing to a cleaner environment and offering a clear marketing advantage. Being able to promote your business as eco-friendly is a huge drawcard and will become even more important as the world moves towards a more green future. The two primary government-backed schemes that provide financial relief to businesses investing in solar power are the Small-scale Renewable Energy Scheme (SRES) and the Large-scale Renewable Energy Target (LRET).

Additionally, state-specific programs and tax benefits further enhance the financial appeal of commercial solar, making it a cost-effective and sustainable investment for businesses across Australia. Below, we'll break down the key government incentives available for businesses considering solar power.

Small-scale Technology Certificates (STCs)

Under the Small-scale Renewable Energy Scheme (SRES), businesses installing eligible solar systems up to 100kW can receive Small-scale Technology Certificates (STCs). Each STC represents 1 megawatt-hour (MWh) of deemed renewable electricity, and their value is usually passed on as an upfront, point-of-sale discount. The number of STCs awarded depends on the system's size, location, and installation date, and for systems up to 100kW the deeming period shortens each year until the scheme ends in 2030.

From 1 October 2026, the SRES also covers eligible mid-scale solar systems from 100kW to 1MW. These systems receive a fixed 5-year deeming period. The Clean Energy Regulator says STC applications for mid-scale systems will not open until mid to late November 2026, so larger businesses no longer need to stop at 100kW to get an upfront discount.

Certificates earned over time (LGCs and REGO)

Under the Large-scale Renewable Energy Target (LRET), accredited power stations create Large-scale Generation Certificates (LGCs) based on the energy they actually produce, which can be sold for ongoing revenue. LGC creation ends when the Renewable Energy Target ends in 2030, while Renewable Electricity Guarantee of Origin (REGO) certificates continue beyond it.

Owners of 100kW to 1MW systems can choose REGO certificates instead of upfront STCs, but if you claim STCs you cannot create REGO certificates for that system during the deeming period. Ask each installer which certificate pathway their proposal assumes. Our commercial solar rebates guide explains the options in more detail.

State programs

In addition to federal initiatives, various Australian states offer their own programs to promote commercial solar adoption. Programs open and close regularly, so check what is currently available in your state before relying on it in a business case.

Can your business claim tax deductions on solar?

Beyond rebates and certificates, businesses can benefit from tax incentives designed to encourage investment in renewable energy. For example, the Instant Asset Write-Off scheme allows eligible businesses to immediately deduct the cost of solar installations from their taxable income, improving cash flow and reducing the payback period. Additionally, accelerated depreciation rates for renewable energy assets enable businesses to depreciate the value of their solar systems more quickly, resulting in tax savings over a shorter time frame.

There are also solar incentives for batteries for the times your solar panels may not be generating enough electricity. The downside to batteries is the technology is relatively new and with that it can take up to 10 years for a battery to pay back its initial set up costs. This will improve over time as technology and widespread usage of batteries improve.

What are the non-financial benefits of commercial solar?

Investing in commercial solar extends beyond financial gains. Businesses adopting renewable energy demonstrate a commitment to environmental sustainability, enhancing their corporate image and appealing to eco-conscious consumers. This shift can provide a competitive advantage in markets where environmental responsibility influences consumer choices. Leveraging being environmentally friendly without Greenwashing your claims is a major benefit to companies moving towards a cleaner future. Most consumers these days are well aware of the threats of non renewable energy and will focus more on green companies. This demographic of people can only improve as time goes on.

Moreover, reducing reliance on grid electricity decreases exposure to energy price volatility, providing greater predictability in operational costs. This stability is particularly beneficial in industries where energy expenses constitute a significant portion of total costs. It is no secret the rising costs of energy both from a domestic and commercial perspective is getting out of hand, so why wouldn't you want to transition to a more cost effective solution ensuring your companies future expenses don't completely blow out.

What would a 70kW system return? A worked example

As an illustration, consider a Sydney manufacturer that uses most of its electricity during business hours and installs a 70kW system in 2026. In STC Zone 3, the system earns around 483 STCs over the 5-year deeming period, an upfront discount of roughly $19,000 at the $40 Clearing House price. The system's deemed output is about 97 MWh a year; if the business uses nearly all of it on site at around 20c/kWh, the saving is roughly $19,000 a year. That would pay back a system costing $52,000 to $74,000 after STCs in roughly three to four years. These are illustrative figures, not a quote: your savings depend on your tariff, how much solar you use on site, and the system price. Our commercial solar guide explains how to test these assumptions in a proposal.

Industry experts emphasise the importance of tailoring solar solutions to specific business needs. Factors such as energy consumption patterns, roof space availability, and future expansion plans should be considered when designing a solar system. Engaging with reputable solar providers ensures that businesses receive systems optimized for their unique requirements, maximizing ROI. Luckily Your Solar Quotes can provide the most qualified & reputable solar companies for you to compare.

How does a commercial solar project work, step by step?

Embarking on a commercial solar project involves several key steps:

Energy Assessment: Conduct a thorough analysis of current energy usage to determine the appropriate system size.
Financial Analysis: Evaluate the costs, potential savings, and available incentives to establish a clear financial outlook.
Selecting a Provider: Choose a certified and experienced solar installer with a proven track record in commercial projects. Using Your Solar Quotes will greatly assist in this step.
Installation and Commissioning: Oversee the installation process to ensure compliance with industry standards and seamless integration with existing systems.
Monitoring and Maintenance: Implement monitoring tools to track system performance and schedule regular maintenance to sustain efficiency.

Utilising platforms like Your Solar Quotes can streamline this process by connecting businesses with trusted local installers and providing access to unbiased customer reviews. This approach facilitates informed decision-making and promotes successful solar investments.

Your Solar Quotes have over 15 000 reviews that will help make you an informed decision on your solar power journey.

Here are a couple of reviews for a few companies from Your Solar Quotes:

Solar World - I was unable to source a provider who can install 6.6kw solar system due to shape and size of my roof then I came to know about solar word and engage their team to see if they can provide something to suite my need. They were not only able to install the 6.6kw but also in the minimal cost compared to other suppliers. Their service friendly team and quick responses helped me through the whole process including Strata approval very smoothly. I will highly recommend them. - Muhammad Asif
Energy Busters - Can highly recommend Energy Buster and their exceptional follow up service. Not only did they bring to my attention that our solar inverter had stopped working, they handled the warranty claim and organised a super-fast replacement - I didn't have to lift a finger. - Jayne Westell
NextGen Power - Just a quick post to say I got Stewart to install a 5kw fronius inverter with 20 panels. He did a great job managing me through the process from start to finish and I would have no hesitation recommending him to anyone. - George Nicholls

Is commercial solar worth it for your business?

Investing in commercial solar power in Australia presents a compelling opportunity for businesses to reduce operational costs, capitalise on government incentives, and demonstrate environmental stewardship. With a range of federal and state programs designed to offset installation expenses and enhance ROI, the financial and corporate benefits of adopting solar energy are substantial.

With multiple federal and state-level incentives, tax benefits, and financial rebates, commercial solar in Australia is an incredibly attractive investment. By taking advantage of STCs, generation-based certificates, state grants, and tax deductions, businesses can dramatically lower the cost of solar installation and achieve long-term energy savings.

Find the best deal on commercial solar. If you're considering installing solar power on your business, we have done the due diligence on 966 accredited solar companies who will go above and beyond for you. Their reputations are built on years of providing extraordinary service to our past customers, and you can rest assured that your solar investment is in safe hands. By partnering with Your Solar Quotes, your business can confidently navigate the journey towards a sustainable, and cost-effective solar energy solution.

Enter your details below or give our friendly team a call on 1300 939 821, and we will arrange your obligation-free commercial solar quotes today!

For a 100kW commercial solar system installed in 2026, the upfront STC rebate is typically worth around $23,000 to $32,000. The system earns 592 STCs in Zone 4 up to 811 STCs in Zone 1 over the 5-year 2026 deeming period, and each STC is worth up to the $40 Clearing House price. This rebate is normally applied as an upfront discount on the system cost by your installer rather than paid back to you as a separate amount.

For example, a 100kW commercial solar system in Australia typically lands in the order of $130,000 before the rebate, which means it would usually be quoted at around $98,000 to $107,000 after the STC discount is taken off. The exact STC zone, certificate count, and dollar value should be itemised on every commercial solar quote so you can see exactly what has been applied and check that the numbers are consistent across competing proposals.

Is commercial solar a good investment in Australia?