In recent years, there has been a growing trend in Australia towards adopting renewable energy sources, especially solar energy. In Victoria, the state government has introduced a range of incentives to encourage businesses to adopt solar energy and reduce their carbon footprint. These incentives include solar rebates, subsidies, and renewable energy certificates or solar credits.
As Australia’s trend towards solar energy adoption strengthens, exploring incentives becomes pivotal. Energy Matters provides a practical avenue for businesses in Victoria considering the shift.
Get FREE solar quotes now, ensuring your journey towards sustainability is supported by incentives and tailored to your specific needs and goals.
On this page
Did you know Energy Matters is Australia’s largest renewable news, blog and educational resource? Subscribe to Energy Matters’ weekly newsletter and keep updated even with incentives, rebates and recommended solar product offers.
State-wide subsidy program for small businesses' solar electricity
Federal and state authorities have offered incentives for companies that allow commercial solar energy to be installed. The benefits of commercial solar installations are increasing in solar for businesses in Victoria thanks to the attractive rebates available to them. Commercial solar rebate in Victoria helps businesses see returns on investment quicker by providing an additional revenue source.
The most significant current program for Victorian businesses is the state’s commercial and industrial solar PV discount, delivered through the Victorian Energy Upgrades (VEU) program. It provides an upfront, point-of-sale discount for systems between 30kW and 200kW, worth up to around $35,000 depending on system size, with the current funding round set to run from September 2026. Applications must be submitted in full to be considered under the current terms, so businesses planning a system in this size range should apply well ahead of any stated cut-off. Systems under 30kW aren’t covered by this program and instead rely on federal STCs alone (see below), while systems from 100kW upward move into LGC territory rather than the VEU discount.
Check out our page to learn more about each state’s commercial solar rebates, grants & incentives.
Commercial systems and small-scale technology certificates (STCs)
STCs apply to any eligible small-scale system, residential or commercial, up to 100kW in size, they aren’t limited to residential users.
Renewable energy systems larger than 100 kW output can access the separate LGC/LRET pathway (see below) instead of STCs.
What are STCs and how can I access them for my commercial system?
Your system, solar power plant or hydro system, will receive a specific number STC.
Each STC represents one megawatt hour (MWh) of renewable energy generated or displaced. Depending on the anticipated MWh of energy generated within the deeming period (which now reduces each year and runs only until 2030 under the Small-scale Renewable Energy Scheme), the number of STCs assigned will vary. For systems installed in 2026, the deeming period is 5 years, down from 6 years in 2025. For example, an installation expected to generate 100 MWh over its remaining deeming life to 2030 would be assigned 100 STCs.
All STCs are assigned a market value, which fluctuates but is currently trading at around $36–$40 per certificate in 2026 (with a cap of $40). Note that from 1 May 2026, batteries claiming STCs under the federal Cheaper Home Batteries Program are subject to a different, tiered calculation, this flat per-certificate pricing applies to standard solar PV, not to battery claims.
Commercial systems and Large-Scale Generation Certificates (LGCs)
As part of its Renewable Energy Target, the Australian government created Large Scale Generation Certificates (LGCs) (RET). A programme aims to lower electrical sector carbon emissions and promote sustainable and renewable energy sources.
Businesses can benefit from the Large Scale Renewable Energy Target (LRET) and Large Scale Generation Certificate if they are interested in installing large commercial solar systems with more than 100kW. (LGC). Businesses can purchase and sell renewable energy produced by massive solar power systems thanks to an LGC.
A solar energy system must be authorised before generating LGCs. The first requirement is that the system won’t be based on fossil fuels. The second is that the system must be larger than 100kW. This threshold is due to shift: subject to final regulations, the government intends to expand SRES eligibility from 1 October 2026 to cover “mid-scale” solar PV systems above 100kW and up to 1MW, giving those systems access to STCs on a 5-year deeming period instead of requiring the LGC/LRET pathway. Victorian businesses sizing a system in the 100kW–1MW range should check the current status of this change before committing to the LGC route.
Check out our page to learn more about large-scale generation certificates.
Upgrading existing solar for Victorian small businesses
The Victorian government has also introduced many policies to support the growth of the solar energy sector. This includes the establishment of a Renewable Energy Target, which requires that a certain percentage of energy consumed in Victoria come from renewable sources. Victoria’s current target is 95% renewable electricity generation by 2035. The government is also working to streamline obtaining permits and approvals for renewable energy projects, making it easier for businesses to install solar energy systems.
Check out our page to learn more about Victoria’s Increases Renewable Target to 95 per cent by 2035.
What kind of businesses benefit from commercial solar rebates and incentives in Victoria?
More savings for small business owners
Installation of solar panels in commercial buildings can also involve more money than expense. Solar power is a cost-saving technology that helps companies reduce their electricity bill. The State government offers significant solar energy savings to make installation easier and cheaper for smaller solar energy businesses. Since 2010 solar modules’ cost has fallen by 89%. In the wake of reducing solar panel costs, installing is more practical. Solar energy will also help you prevent the increase in energy costs for future events.
Huge savings on your power bills
Commercial solar PV systems are generally cost-effective in terms of energy savings. Solar panels are a good investment and will help you reduce your energy bills monthly and annually. The government’s solar rebate program allows companies to use heavily subsidised solar systems.
The Victorian government has taken significant steps to encourage businesses to adopt solar energy. These incentives and policies have helped to create a supportive environment for businesses that want to reduce their carbon footprint and invest in renewable energy. With the growing demand for renewable energy and the increasing availability of affordable solar energy systems, there has never been a better time for businesses in Victoria to invest in solar energy bills.
Read more about business rebates:
Electricity rebate in Melbourne and Victoria
Energy bill relief for small businesses
Under the Energy bill relief plan, the Commonwealth Government is partnering with states and territories to provide $3 billion in targeted electricity bill assistance to eligible Australian households and small businesses.
Businesses under the “small customers” category for electricity rebates whose annual energy consumption is less than 100 MWh are eligible for energy bill relief. Depending on when they get their electricity bill, eligible businesses will begin receiving this bill relief on or after July 1, 2023.
There is no action required by small businesses to get the electricity rebate in Melbourne and Victoria.
***
The Commonwealth Government announced a $1.8 billion extension to the Energy Bill Relief Fund for 2025–26. From 1 July 2025, Australian households and eligible small businesses received up to $150 in energy bill relief, which was automatically applied to electricity bills in two quarterly instalments of $75 each. Most customers did not need to do anything to receive the rebate. This round of relief covered the period from 1 July 2025 to the end of December 2025 and has now concluded. No further extension has been confirmed for 2026 as of the time of writing.
This follows the existing $3.5 billion in energy bill relief provided during 2024–25, where households received up to $300 and eligible small businesses up to $325 off their energy bills.***
Note: The above applies to the 2025–26 financial year (1 July 2025 – 30 June 2026), which has now ended. Businesses should check the Australian Government’s Energy Bill Relief Fund page or their electricity retailer directly to confirm whether relief has been extended or replaced for the 2026–27 financial year.