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Policy update · 7 October 2026

Mid-scale solar now earns STCs: what the 1 MW change means for business

Vitalic EnergyPublished 7 October 2026Last updated 7 October 2026

From 1 October 2026, a commercial solar system over 100 kW and up to 1 MW can create small-scale technology certificates. For a 500 kW system in Brisbane that is about $137,600 of upfront value. This page sets out the rules as the Clean Energy Regulator has published them.

Who
Solar over 100 kW, up to 1 MW
From
Installed on or after 1 Oct 2026
Deeming
Fixed 5 years, to 2030
Applications
Open mid to late Nov 2026

What changed

Systems over 100 kW used to sit in the large-scale scheme, earning a certificate for each megawatt-hour they generated, year by year. A system up to 1 MW now gets its certificates up front instead, through the small-scale scheme, deemed over a fixed five years.

Before 1 October 2026, solar up to 100 kW earned STCs and larger systems earned LGCs. From 1 October 2026, solar up to 1 MW earns STCs; above 1 MW is not changed by this reform.Beforeto 30 Sep 2026STCsLGCs, earned per MWh, year by yearFrom1 Oct 2026STCsSTCs, new: fixed 5-year deemingunchanged0100 kW250 kW500 kW750 kW1 MWover 1 MW

What a system earns

STCs = capacity in kW × the postcode zone rating × 5 years, rounded down. The zone rating is 1.382 in Zone 3, which covers Brisbane, the Gold Coast, the Sunshine Coast, Toowoomba, Sydney and Perth, and 1.185 in Zone 4, which covers most of Melbourne. The worked examples use postcodes 4000 (Brisbane City) and 3000 (Melbourne); confirm your site’s postcode and eligibility. Values are floored to $100 and use the CER’s reported spot price of $39.85 (14 August 2026); the CER clearing house pays a fixed $40.

Certificate value by system size. Zone 3: 100 kW $27,500, 250 kW $68,800, 500 kW $137,600, 750 kW $206,500, 1000 kW $275,300.100 kW$27,500$23,500 in Zone 4691 STCs250 kW$68,800$59,000 in Zone 41,727 STCs500 kW$137,600$118,000 in Zone 43,455 STCs750 kW$206,500$177,000 in Zone 45,182 STCs1 MW$275,300$236,100 in Zone 46,910 STCs
Upfront certificate value by system size, installed in 2026. Thick bars: postcode 4000, Zone 3. Thin bars: postcode 3000, Zone 4. Installers usually take STCs as a discount on the price.

The 1 MW limit counts the whole site

Eligibility depends on the total solar on the site or adjoining sites, including accredited large-scale power stations, and on how each is connected and metered. These are the CER’s own examples. A single shared meter does not on its own make several installations one system.

A new 500 kW system beside 100 kW of existing solar and a separately metered 400 kW power station totals 1 MW and may be eligible. The same system beside a 600 kW power station totals 1.2 MW and is not eligible.1 MW limit500 kW100400 kW✓ Eligible: 1,000 kW in total500 kW100600 kW✗ Not eligible: 1,200 kW in total
New system Existing solar Accredited large-scale power station

Extending an existing system

An extension can qualify, but only the capacity added on or after 1 October 2026 earns STCs. It must be part of the same, electrically connected system, and the combined system must be over 100 kW and no more than 1 MW. The added capacity does not need to exceed 100 kW on its own.

An existing 80 kW system extended by 40 kW becomes a 120 kW mid-scale system; STCs apply to the 40 kW only.80 kW existing · no STCs+40 kW · earns STCs= a 120 kW mid-scale system. In Zone 3: 276 STCs, about $10,900.

Timeline

  1. 5 Aug 2026Expansion announced
  2. 1 Oct 2026Systems installed from today qualify
  3. Mid–late Nov 2026STC applications open
  4. 2030Scheme ends; deeming runs to here

The evidence the CER asks for

Mid-scale applications need written evidence that every planning and approval requirement was met, including the network connection approval. Keep these from design onwards:

  • System design documentation
  • Network connection approval
  • Planning and building approvals
  • Structural engineering reports, where applicable
  • Metering information
  • Electrical compliance certificates
  • Testing and commissioning records
  • Geotagged, time-stamped photos of the accredited installer at final commissioning

Panels, inverters and batteries must be on the Clean Energy Council approved lists, and the installation must meet Solar Accreditation Australia guidelines.

What it means for a commercial site

For a site sizing a system between 100 kW and 1 MW, the certificate value now arrives at installation rather than over years of generation, which changes the upfront cost. It is worth checking three things early: whether existing solar on the site or next door counts towards the 1 MW limit, whether a planned expansion is better installed after 1 October 2026, and whether STCs or REGO certificates suit the site better. We model the system against twelve months of interval data and the site’s tariff, and include the certificate value in the comparison.

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Common questions

What changed on 1 October 2026?

Solar systems with a capacity over 100 kW and up to 1 MW, installed on or after 1 October 2026, can now create small-scale technology certificates (STCs) under the Small-scale Renewable Energy Scheme. Before, systems over 100 kW sat in the large-scale scheme and earned large-scale generation certificates (LGCs) year by year.

How many STCs does a 500 kW system create?

Capacity × postcode zone rating × a fixed 5-year deeming period, rounded down. In Zone 3, which covers Brisbane, Sydney and Perth, that is 3,455 STCs, about $137,600 at the reported spot price of $39.85. In Zone 4, most of Melbourne, it is 2,962.

When can mid-scale STCs be claimed?

The Clean Energy Regulator expects applications to open in mid to late November 2026. Systems installed on or after 1 October 2026 are assessed against the rules from that date, whenever the application is lodged.

Does adding panels to an existing system qualify?

Only the new capacity earns STCs. The CER’s example: an 80 kW system extended by 40 kW after 1 October 2026 may be eligible as a 120 kW mid-scale system, with STCs on the 40 kW only. The extension must be part of the same, electrically connected system, and the total must be over 100 kW and no more than 1 MW.

Does the 1 MW limit include other solar on the site?

Yes. Eligibility depends on the total solar capacity on the site or adjoining sites, including accredited large-scale power stations, and on how they are connected and metered. Where the combined capacity would exceed 1 MW, a new system is not eligible as mid-scale.

Can a system earn both STCs and LGCs?

No. A system cannot create both for the same capacity. Existing accredited power stations stay in the large-scale scheme and can keep creating LGCs if separately metered. A system that takes STCs also cannot create REGO certificates for its deeming period.

Is a 100 kW system affected?

No. Systems of up to 100 kW were already in the small-scale scheme. For one installed in 2026 the deeming period is also 5 years, so a 100 kW system in Zone 3 creates 691 STCs either way. Its deeming period falls by a year for each later year of installation.

Sources

This page summarises the CER’s published guidance as at 7 October 2026. Eligibility depends on each installation; check the regulations and the CER’s calculator for a specific system.