From 1 October 2026, subject to regulations being finalised, the Australian Government’s solar incentive, will apply to systems up to 1 megawatt (MW), replacing the current 100 kW limit.

The incentive is delivered through the Small-scale Renewable Energy Scheme (SRES), which has discounted household and small commercial solar since 2011. The discount is applied to the quoted price by the installer, who claims the Small scale Technology Certificates (STCs).

The government estimates the discount at around 20 per cent of eligible costs, taking   approximately $68,000 and $136,000 off the cost of a 250 kW system and 500 kW system respectively.

For reference, a north-facing 100 kW solar PV system could be expected to generate around 150,000 kWh per year at Cecil Plains. The amount of generation will vary by location and depending on the specification and orientation of the system and note that the system will generate more in summer than winter because of the longer days.

Likely applications on cotton properties include:

• large machinery sheds

• irrigation pumping operations

• packing and processing facilities

• farm workshops and warehouse

• grain storage infrastructure.

Large Ergon customers and those with inverter capacity above 30 kW are not eligible for the regional feed-in tariff. Sites may still be permitted to export, subject to network approval, but will not be paid for exported energy.  

The tariff eligibility does not apply to south east Queensland where there is full retail competition. South east Queensland businesses and those with non-ergon retailers in regional Queensland should check with their retailers about whether they would earn a feed in tariff.

Solar and batteries

Farms could consider installing solar and battery systems, with Small-scale Technology Certificates (STCs) potentially available for both, subject to eligibility.

Under the Cheaper Home Batteries Program (CHBP), eligible batteries between 5 and 100 kWh nominal capacity can receive STCs, with certificates available for the first 50 kWh of usable battery capacity. The resulting discount is currently around 30% of the upfront battery cost, although the value will decline over time.

Currently, where a battery is installed with new solar PV, the solar system must be less than 100 kW to qualify for the CHBP. The Australian Government has not yet confirmed whether the 100 kW solar limit applying to batteries under the CHBP will also increase. This should therefore be checked before contracts are signed.

Feed In Tariffs

Note that even where farms are able to earn a feed-in-tariff, consider the future value of solar exports, which may reduce as more farms and businesses install solar systems.

Next Steps

To get the right estimate on the right solar and battery system:

• Ask for quotes from designers accredited by Solar Accreditation Australia.  The system should then be installed by an accredited installer.
• Check eligibility details at the relevant program website below.
• The system design and quote should be based on up to two years of interval data, or bills if no interval data is available and include “Typical Day” curves showing how the system will perform on key days throughout the year (eg, high irrigation and no irrigation for both summer and winter).
• Check with your Network Service Provider whether there are likely to be any constraints placed on the system before committing to the system.
• The cost benefit analysis should consider a case where no feed in tariff is payable and so the base case could be sized to maximise self-consumption, with export only where unavoidable.
• Ensure the quote provides for full design, installation, connection and commissioning.

Information about the programs: 

Rooftop Solar Program: Rooftop solar | Clean Energy Regulator

Cheaper Home Battery Program: https://www.dcceew.gov.au/energy/programs/cheaper-home-batteries 

NSW Peak Demand Reduction Scheme: https://www.energy.nsw.gov.au/nsw-plans-and-progress/regulation-and-policy/energy-security-safeguard/peak-demand-reduction-scheme 

Solar Accreditation Australia: https://saaustralia.com.au/ 

Farms in Queensland can call QFF’s Energy Information Service for Landholders (EISL) if you have any questions about on-farm energy.  The service is available Monday – Friday from 8:30am – 5pm and can assist by providing information and guidance on a range of energy matters. 

Call 07 3329 7500 to access the service today.