What a business can claim.
Commercial incentives work differently to residential, and the difference is worth understanding before you size a system — because one number decides which scheme you land in.
The 100 kW line
Everything about commercial solar economics turns on whether your system is under or over 100 kW.
| Under 100 kW | 100 kW and above | |
|---|---|---|
| Scheme | SRES — small-scale | LRET — large-scale |
| Certificate | STCs | LGCs |
| When you get it | Upfront, off the invoice | Annually, over the life of the system |
| Based on | Deemed future generation | Actual metered generation |
| Cash flow | Lower capital outlay on day one | Full cost upfront, revenue stream after |
| Admin | Handled by your installer | Ongoing registration, metering and trading |
Neither is automatically better. A 99 kW system minimises upfront cost. A larger system generates more energy and earns certificates every year it runs, but you fund it yourself first. Some businesses stage it — install under the threshold, then expand later.
Small-scale certificates for business
Below 100 kW, a commercial system works exactly like a residential one: certificates are calculated from system size, zone and years remaining to 2030, then deducted from your price. Because the deeming period shortens each January, the same system installed a year later earns meaningfully less. For a system in the tens of kilowatts, that difference runs to thousands of dollars.
Large-scale certificates
At and above 100 kW your system creates one certificate per megawatt-hour it actually generates. Those certificates are sold on the LGC market, so the value depends on both your output and the market price at the time. It is genuine ongoing revenue, but it requires registration, compliant metering and someone to manage the trading — which we can arrange as part of the project.
Batteries for business
The federal battery program is not residential-only. Businesses and community organisations can access it too, with the same capacity tiers: full rate on the first 14 kWh of usable capacity, 60% from 14 to 28 kWh, and 15% from 28 to 50 kWh.
For most commercial sites, though, the rebate is not the main event. The bigger prize is demand charge reduction: because demand is billed on your highest interval rather than your average, a battery that discharges through a handful of peaks each month can change your bill structure entirely. See our battery page.
The tax treatment
The incentive most businesses overlook isn't an energy scheme at all. Eligible businesses may be able to write off the cost of the system under the instant asset write-off, which stacks on top of certificate discounts and materially changes the after-tax cost. Thresholds and eligibility have changed repeatedly, so treat this as a conversation for your accountant rather than something to assume.
What to ask any commercial installer
- Show the certificate discount as a separate line on the quote.
- Model both sides of the 100 kW threshold before recommending a size.
- Base the design on interval data, not the total on your bill.
- State clearly who manages LGC registration and trading, if applicable.
- Show what the system does to demand charges, not just energy charges.
Incentive schemes change, sometimes at short notice, and eligibility depends on your specific circumstances. This page is a plain-English guide, not advice, and the figures are indicative. We confirm your actual entitlement in writing against the rules in force on the day of installation. Official sources: DCCEEW and the Clean Energy Regulator.
Commercial rebate questions.
What is the 100 kW threshold?
Systems under 100 kW create Small-scale Technology Certificates, taken off your invoice as an upfront discount. Systems of 100 kW and above create Large-scale Generation Certificates instead, earned each year on actual generation. It changes the cash flow of the project completely.
Can a business get the battery discount?
Yes. The Cheaper Home Batteries Program is available to businesses and community organisations as well as households, subject to the eligibility rules and the same capacity tiers.
Can we claim solar as a tax deduction?
Eligible businesses may be able to deduct the cost under the instant asset write-off, which stacks with certificate discounts. Thresholds change between years, so confirm current eligibility with your accountant.
Is it better to stay under 100 kW?
Sometimes. A 99 kW system captures the upfront discount, while a larger system earns LGC revenue over time but needs more capital upfront. We model both before recommending one.
Want this modelled for your site?
We analyse your interval data, model both sides of the 100 kW threshold and put the numbers in writing before you commit.