On 1 October 2026, the Small-scale Renewable Energy Scheme (SRES) grew. Solar PV systems above 100 kW and up to 1 MW, installed from that date, can now create Small-scale Technology Certificates, with a fixed five-year deeming period. Until then, any solar system over 100 kW was a power station that earned LGCs slowly, at a price of $6 to $9 in 2026. Now it can take about $38 to $40 per certificate, upfront.
That is a large change for commercial, industrial and agricultural sites, and it comes with conditions and a gap before applications open. This page explains what it means in plain terms. For the installer’s view, see the installer guide. The pillar page is mid-scale solar STCs.
The change in one table
| Before 1 Oct 2026 | From 1 Oct 2026 | |
|---|---|---|
| Up to 100 kW | STCs | STCs (no change) |
| 100 kW to 1 MW | LGCs via power station accreditation | STCs, fixed five-year deeming |
| Above 1 MW | LGCs | LGCs (no change) |
| Value timing for 100 kW to 1 MW | Slow, as electricity is generated | Upfront when certificates are created |
The amendment is to the Renewable Energy (Electricity) Regulations, made in 2026. The Clean Energy Regulator (CER) says applications for mid-scale systems open mid to late November 2026.
What it is worth
A system’s STCs equal kW x zone rating x deeming years. With a fixed five years:
| System | Zone 3 STCs | Value at $38 | Zone 4 STCs | Value at $38 |
|---|---|---|---|---|
| 150 kW | 1,036 | $39,368 | 888 | $33,744 |
| 250 kW | 1,727 | $65,626 | 1,481 | $56,278 |
| 500 kW | 3,455 | $131,290 | 2,962 | $112,556 |
| 1 MW | 6,910 | $262,580 | 5,925 | $225,150 |
Zone 3 includes Sydney, Brisbane, Perth, Adelaide, Canberra and the Gold Coast. Zone 4 covers Melbourne, Geelong, Hobart and Launceston. Public commentary estimated the discount at about 20% of upfront cost, or about $68,000 on 250 kW and $136,000 on 500 kW, which matches the zone 3 range at $39 to $40.
At current LGC prices, the same 250 kW system creates about 375 LGCs a year, about $3,000 at $8. The break-even LGC price needed to match the STC route over the four years to 2030 is around $44, which is why the new route is so much better. See the LGC vs STC decision.
What it means for different businesses
A factory or warehouse with a large roof. The system can now be sized to the roof and load without the 99 kW compromise. Payback improves, because the upfront discount cuts the net cost by roughly a quarter on illustrative pricing. See commercial solar rebates in 2026.
A farm. Irrigation and processing loads often suit 150 to 500 kW. The discount falls into the same range, and network connection limits are often the binding constraint, not the certificate.
A school or council. Public buyers may have procurement rules on certificate ownership. Check the tender documents for who owns the STCs.
A business on a PPA. The provider owns the certificates and should pass part of the value on in the price. See commercial solar PPAs explained.
A developer above 1 MW. No change. LGC route, with accreditation and metering. See how to accredit a solar power station.
What does not change
- The 1 MW upper limit. Anything above is large-scale.
- Small-scale deeming under 100 kW. Five years for 2026 installs, four for 2027, falling to one in 2030. The scheme ends 31 December 2030.
- Existing power stations. They stay in the large-scale scheme, and their LGCs continue.
- Installer and product rules. Design and installation by SAA-accredited people with Clean Energy Council approved products. Network, planning and electrical safety compliance still apply.
What to check before you sign a quote
- Installation date. The system must be installed on or after 1 October 2026.
- Who lodges and who is paid. The owner holds the right to the certificates. The installer usually claims by assignment, and the discount appears on the quote.
- When the money is received. Certificates cannot be created until applications open in mid to late November, and then they must be validated and sold.
- What if the rules change. Ask for a clause that explains who carries the difference.
- Accreditation. Confirm the installer’s SAA accreditation and the product approvals.
The effect on LGCs
Mid-scale systems were a main source of new LGC supply. With them moving to STCs, the market expects fewer new power stations to register. Spot LGCs were about $8 in late September 2026, with a September range of roughly $6 to $9, after a low near $4 in February, and the regulator has described oversupply as likely to last to 2030. Less supply helps at the margin, but it is not a reason to plan on a recovery. See the LGC pillar and how to sell LGCs.
And the wider timeline
| Date | Event |
|---|---|
| 1 October 2026 | Mid-scale solar eligible from installation date |
| Mid to late November 2026 | CER expects mid-scale applications to open |
| 1 January 2027 | Small-scale deeming drops to four years; battery factor 5.7 |
| 31 December 2030 | Small-scale scheme ends |
For more on the policy backdrop, see federal budget 2026 solar and battery measures and STC scheme changes.
Points people often confuse
“Up to 1 MW” is not “up to 1,000 panels”. The limit is on system capacity, so check how the CER measures it. Confirm in its guidance whether it means panel capacity or inverter capacity before you design a system close to the line.
STCs for mid-scale are not LGCs paid early. They are a different certificate with a different price, about $38 to $40 against $6 to $9, created from a fixed five-year deeming period. They are not the same asset.
The five-year figure does not step down. Small-scale solar loses a deeming year each January. Mid-scale, as described in the 2026 regulation changes, is fixed at five.
A system installed on 30 September is not covered. The date is 1 October 2026 or later, and the installation date is set by state electrical safety rules.
Applications are not open yet. The CER says mid to late November 2026, so there is a wait between installing and being paid. See commercial solar over 100 kW for the earlier position.
What to do next
- If you are planning a commercial system, get a quote at 99 kW and at the size the roof supports, and compare the STC lines.
- Check the CER’s mid-scale page for the application date and final rules.
- Read the commercial solar rebate guide and the 100 kW limit answer.
- Installers can see STC trading and how it works, then start trading.