Solar costs for business to be slashed under energy scheme expansion

The Australian government plans to significantly reduce the costs associated with installing solar systems for businesses, as part of an expansion of the Small-scale Renewable Energy Scheme (SRES). The initiative, set to be announced by Climate Change and Energy Minister Chris Bowen, aims to slash up-front costs by approximately 20%.

This expansion will see the scheme's capacity increase from 100 kilowatts to one megawatt. The expansion is anticipated to save retailers nearly $70,000 for a 250kW solar system and more than $230,000 for a large retail complex or logistics warehouse with an 850kW system. This move is driven by the success of the Cheaper Home Batteries Program, which has spurred residential solar installations and aims to bring new life to commercial installations.

The government's expansion of the SRES aims to bridge the 'missing middle' in solar capacity, focusing on mid-scale solar installations in factories, warehouses, and agricultural buildings. Currently, Australia's residential solar capacity stands at around 22 gigawatts, but businesses have only installed 5.6 gigawatts, most of which are small-scale rooftop systems.

The government hopes that the expanded SRES will encourage businesses to adopt more solar power, ultimately lowering their electricity bills and boosting productivity. The announcement also calls for the Australian Energy Market Commission to streamline network provider approvals for commercial and industrial solar installations.

Industry experts have hailed the expansion as a "game changer," with the potential to generate the equivalent of 10 coal-fired power stations in solar energy capacity. However, climate policy advisors urge the Albanese government to explore additional measures to ensure Australia reaches its renewable energy target of 82% by 2030.