Small business solar in Australia: the rebate basics
Small business solar uses the same federal STC rebate scheme as residential, up to a system size of 100 kW. Above 100 kW, the system attracts Large-scale Generation Certificates (LGCs) instead — different math, different cash flow, beyond the scope of this page.
For the typical small business install (10–50 kW, fitting on a shop or warehouse roof), the federal STC rebate is calculated identically to residential: system size × STC zone × 4 deeming years × $38 (for 2026 installs) per certificate. The rebate is applied as a point-of-sale discount on the install invoice.
The instant asset write-off
Until 30 June 2025, small businesses could write off the full cost of a new solar system in the year of installation under the temporary $20,000 instant asset write-off threshold. For 2025–26 the threshold reverted to standard depreciation — typically 15% in year 1, 30% prime cost in subsequent years.
Net effect: a $25,000 commercial system (10 kW + battery) effectively costs about $17,000 after the federal STC rebate, plus immediate tax deduction on the depreciated portion. Talk to your accountant for the specifics of your tax situation.
Payback math for common small-business types
Cafe or restaurant (typical 10 kW system)
Cafes typically have high daytime electricity use (commercial refrigeration, coffee machines, lighting, air-con). Self-consumption is often 85–95% — almost all generated power offsets imports. Typical payback: 2.5–3.5 years.
Retail shop (typical 5–10 kW system)
Shopping centre opening hours (9am–5pm) match solar production well. Lighting, air-con, EFTPOS, point-of-sale gear all run during daylight. Typical payback: 3–4 years.
Warehouse (typical 30–50 kW system)
Warehouses usually have plenty of north-facing roof and moderate daytime load (lighting, charging, refrigeration). Payback varies more (3–5 years) depending on whether the warehouse runs 24/7 or daytime only.
Office (typical 5–15 kW system)
Office payback is usually slower (4–6 years) because peak load (lighting, computing, air-con) runs in office hours but isn't as intense as a cafe or retail floor.
State commercial solar programs
- VIC — Solar Victoria's Small Business Energy Saver program offers grants for energy-efficient upgrades, sometimes including solar components.
- NSW — Sustainability Advantage program and PDRS commercial battery incentives.
- QLD — Business Energy Saving and Transformation program for SMEs.
- WA — Energy Bill Relief and Small Business Energy Incentive.
How we work with small business
We match you with a CEC-accredited installer who has small-business experience. The specialist follow-up covers:
- System sizing based on your typical electricity usage pattern (interval data from your last bill helps).
- Roof assessment from satellite imagery.
- Quote with federal STC rebate applied and any state programs available to your business.
- Hand-off to a single installer who handles install + grid approval.
Common questions
Can a small business claim the federal solar rebate?
Yes. The federal STC rebate applies to commercial systems up to 100 kW. The calculation is identical to residential: system size × STC zone × 4 deeming years × $38 (for 2026 installs). Above 100 kW, the system attracts LGCs (Large-scale Generation Certificates) instead.
Is solar tax-deductible for small business?
Yes. The system is a depreciable asset — typically 15% in year 1 and 30% prime cost in subsequent years. Until 30 June 2025 there was an instant asset write-off up to $20,000; the threshold reverted to standard depreciation from FY26. Confirm with your accountant.
What's the typical payback for commercial solar?
2.5–4 years for high-daytime-use businesses (cafes, retail, warehouses). 4–6 years for offices. Faster than residential payback because commercial electricity rates are higher and self-consumption is usually higher.
Can my business claim solar GST?
Yes. Solar systems include GST in the purchase price; GST-registered businesses can claim the input tax credit back. The net price your business pays is the GST-exclusive price.