Australia's federal government has announced an expansion of the country's rooftop solar rebate program, raising the eligible installation size cap from 100 kilowatts to 1 megawatt under the Small-scale Renewable Energy Scheme.

Raising the Ceiling on Eligible Systems

The Small-scale Renewable Energy Scheme, a long-running federal initiative that provides rebates for rooftop solar installations, will now extend its coverage to significantly larger systems. Previously, only installations up to 100 kW qualified for support under the scheme. Under the newly announced changes, that threshold rises tenfold to 1 MW, opening the program to a broader class of solar projects.

Targeting the 'Missing Middle'

The expansion is positioned as a measure to address what proponents have described as the "missing middle" of Australia's solar market — installations too large to benefit from small-scale consumer incentives but too small to attract the financing structures typically associated with large-scale utility projects. Commercial rooftops, mid-sized industrial facilities, and similar sites have historically occupied this gap in policy support. By extending scheme eligibility up to 1 MW, the federal government is signaling an intent to bring these installations within reach of rebate support that has already proven effective at the residential and small commercial scale.

Broader Context

The Small-scale Renewable Energy Scheme has been a central pillar of Australia's distributed solar growth, helping drive widespread uptake of rooftop panels across households and small businesses. Expanding its scope represents one of the more significant structural changes to the program since its establishment, and follows sustained advocacy from the solar industry for policy mechanisms that better serve mid-tier installations. Further details on implementation timelines and specific rebate structures under the expanded cap had not been fully detailed in the initial announcement.