What Does the 2026 Federal Budget Mean for Commercial Solar Buyers?
On the 12th of May, the much publicised 2026 Federal Budget was released. While adjustments to Capital Gains Tax (CGT) and negative gearing have taken centre stage, there are also important implications for the Australian renewables sector.
In the 2026-27 Budget, the Australian Government has committed further to clean energy on the residential and infrastructure level. However, for commercial and industrial solar buyers, the budget does not introduce a major new federal subsidy or grant program specifically designed to accelerate rooftop solar uptake across businesses.
The Smart Energy Council (SEC) has also viewed the budget as “cautiously positive for renewables, with important wins tempered by some difficult cuts.” (Smart Energy Council)
So, what does the recent budget mean for the future of commercial solar in Australia? Let’s take a look.
What the 2026 Budget Does Include
Several clean energy-related initiatives were included in the 2026 Federal Budget. However, these initiatives generally featured a strong emphasis on households, infrastructure, and regulatory frameworks.
Key measures included:
- Continued support for the Cheaper Home Batteries Program
- Creation of a National Technical Regulator for rooftop solar, batteries, and vehicle-to-grid systems
- Funding for a national solar panel recycling pilot program
- More than $500 million to streamline environmental approvals for major projects
- Continued backing of the Capacity Investment Scheme (CIS)
These initiatives reinforce a focus on accelerating both household electrification and large-scale energy system transformation.
What’s Missing for Commercial and Industrial Solar
According to recent figures from the DCCEEW, the “commercial building sector is responsible for around 25% of overall electricity use and 10% of total carbon emissions in Australia.” (DCCEEW) These figures illustrate that commercial and industrial energy users represent a significant portion of Australia’s emissions and electricity consumption.
In a recent report published in June, 2026, the Institute for Energy Economics and Financial Analysis (IEEFA) reinforced the untapped opportunity that currently exists for C&I solar and storage. In the same report, the institute pointed out that while “Australia leads the world in residential solar with 22GW installed, businesses have only installed 5.6GW.” (IEEFA)
Despite this scope for future growth, there are no major new federal initiatives in the 2026 Federal Budget specifically designed to accelerate decarbonisation across businesses, manufacturing, freight, or large commercial property portfolios. However, as we’ll go on to cover below, there are still plenty of advantages available to Australian business owners.
The Benefits of Commercial Solar
While incentives for commercial solar weren’t the main focus on this occasion, there are still countless benefits that come with embracing clean energy. Over 4 million Australian homes and businesses now have solar installed (Clean Energy Council), yet there’s still significant room for growth in both the industrial and commercial sectors.
Some of the benefits available include:
Saving big on energy bills: Substantial savings on energy bills and future proofing your business from rising energy costs.
Reducing carbon imprint: Lowering carbon emissions and building a sustainable image for your business.
High long-term ROI: On average, our solar systems yield an excellent return on investment annually, and have short payback periods.
Did you know that a commercial solar system can yield as much as a 22.5% ROI? With 25 year performance warranties, installing a solar system on your rooftop could be one of the best investments your business can make.
Considering commercial solar in Melbourne? Looking for industrial solar in Sydney? Contact us and get a free quote today.
Existing Mechanisms Supporting Commercial Energy
Although there were no major announcements regarding commercial solar, there are still established mechanisms that support renewable energy adoption. Let’s take a look at these right now:
Small-Scale Renewable Energy Scheme (SRES)
The Small-scale Renewable Energy Scheme (SRES) is one of the key federal mechanisms supporting solar uptake across Australia.
It works through Small-scale Technology Certificates (STCs), which are generated when eligible solar systems are installed. These certificates are then sold, and the value is applied as an upfront discount on installation costs.
To be eligible:
- Installation must be completed by a Solar Accreditation Australia accredited installer
- Panels and inverters must be Clean Energy Council approved
- System size must not exceed 100 kW
- Certificate value is based on system size, location climate zone, and expected generation until 2030
This scheme is widely used across both residential and small commercial installations.
Solar and Battery Rebates Across Australia
In addition to federal support, a range of state and territory-based rebates and subsidies are available for solar and battery systems.
Eligibility varies depending on the program but typically considers:
- System size (solar or battery capacity)
- Whether the applicant is a household or business
- Income or business turnover thresholds
- Property type and usage
- Timing of installation
Some programs are specifically targeted at social housing, rental properties, or apartment dwellers, depending on jurisdictional priorities.
Large-scale Generation Certificates (LGCs)
Large-scale Generation Certificates (LGCs) are another important incentive available to businesses, especially when it relates to commercial solar systems over 100kW. Unlike upfront rebates, LGCs are earned over time based on the amount of renewable electricity a system generates, with one certificate created for every megawatt-hour (MWh) produced. This means the financial benefit is tied directly to the ongoing performance of the solar system.
Eligible solar installations can generate LGCs year after year, creating an additional revenue stream alongside reduced electricity costs. Once registered through the Clean Energy Regulator, these certificates can be traded on the energy market, helping improve the long-term return on investment of larger commercial solar projects.
Cheaper Home Batteries Program
The Cheaper Home Batteries Program is a national initiative aimed at reducing the upfront cost of battery storage systems.
It applies across all Australian states and territories, offering financial support for both households and small businesses. This includes support for Tesla, Sungrow, and other battery products.
The program’s purpose is straightforward, to improve affordability and accelerate the uptake of battery systems by reducing upfront costs.
Interest-Free and Low-Interest Loans
Alongside rebates and subsidies, some jurisdictions offer loan schemes designed to support solar and battery adoption.
These loans reduce upfront cost barriers by allowing repayments over time, often structured to align with energy bill savings generated by the installed systems.
Eligibility criteria can vary but often include income thresholds, business turnover requirements, or property-related conditions. In many cases, these loans do not require traditional asset security.
The Bottom Line
The 2026 Federal Budget reinforces Australia’s commitment to clean energy, but much of the direct financial support remains focused on households and large-scale infrastructure projects.
Even despite this, there are still many great reasons for commercial solar investment. Take the Australian National Maritime Museum as an example. They are currently saving over $55,000 per year with their Energus installed solar system. Their system will also reduce the amount of carbon involvement from grid related energy by approximately 250 tonnes per year.
Recent global events have also shown just how volatile the supply of finite resources can be, and this is why cleaner energy is such an excellent long-term investment. As expressed by Climate Council in their Budget reply, “the switch to renewable power is our best chance to ensure energy security, to shelter households and businesses from volatile global fossil fuel markets, and cut climate pollution permanently.” (Climate Council)
Interested in Commercial Solar? Partner with Energus Today
At Energus, we take pride in delivering high-quality solar and battery solutions that empower Australian businesses. Our commitment to excellence has been recognised by Solar Nerds, with awards in the National Installer 40-100kW category for 2023, 2024, and 2025. In 2025, we were officially recognised as a Top 3 installer nationwide.
Here’s a snapshot of what’s included in our solar installations:
- Solar panel installation
- Panel layouts
- Solar schematic drawings
- AC/DC line diagrams
- Project management SWMS
- Project management plans & schedules
- Logistical plans
- Operational support team
- Quality control
- WHS inductions
- Installer training and inductions
You can explore our projects right here online or head here to get a free quote.
Frequently Asked Questions
What financial support is still available for commercial solar?
Support, such as certificates, rebates, and low or interest-free loan schemes can really make an impact and ease the financial burden of switching to solar. At Energus, we’re more than happy to help businesses navigate these programs and determine what applies to their installation.
How does the SRES reduce solar installation costs?
The SRES generates STCs based on system size and output, which are used to reduce upfront installation costs for eligible systems up to 100 kW. Energus can calculate and include these savings in your project quote.
Is commercial solar still worth it without new incentives?
It certainly is, particularly when you factor in the strong ROI driven by reduced energy bills and long-term cost stability. The Energus team can model your expected savings and show how incentives (where available) impact payback periods.
Why are more businesses turning to solar for long-term stability?
Businesses are increasingly adopting solar because it improves overall energy resilience and financial predictability over time. While energy price volatility is one factor, the bigger drivers include reducing operating costs, improving control over long-term energy expenses, meeting sustainability expectations, and strengthening overall business efficiency.