The October 2026 Game-Changer: Commercial Solar Up to 1MW Gets Upfront STCs
Until now, solar systems over 100kW had to claim their renewable energy certificates annually over 15 years (LGCs — Large-scale Generation Certificates). This meant no upfront discount and a complex ongoing compliance burden.
From October 2026, the federal government is expanding the Small-scale Renewable Energy Scheme (SRES) to include systems from 100kW up to 1MW. This means:
- Upfront STC discount of approximately 20% on system cost
- No ongoing certificate management — your installer handles everything
- Immediate cash flow benefit — pay the net price on day one
For a 300kW industrial system costing $300,000, this represents approximately $60,000 in upfront savings that previously wasn't available.
"We've had 40+ industrial clients waiting for this expansion. A 500kW system on a cold storage facility that would have taken 5 years to pay back under the old LGC model now pays back in 3.2 years with upfront STCs. The economics have fundamentally shifted for mid-scale industrial solar." — Mark Willis, Head of Renewables & Electrification, Cable Co
Why Industrial Facilities Are Ideal for Solar
Industrial buildings have characteristics that make solar exceptionally effective:
| Factor | Industrial Advantage | Impact on ROI |
|---|---|---|
| Roof area | 1,000-10,000m² flat roofs | Fits 100kW-1MW+ systems |
| Consumption pattern | High daytime load (manufacturing hours) | 70-90% self-consumption |
| Energy rates | $0.25-$0.38/kWh (demand + usage) | Higher savings per kWh generated |
| Demand charges | $15-$45/kVA/month | Solar + battery eliminates peaks |
| Roof condition | Metal deck, minimal shading | Easy installation, optimal yield |
| Operating hours | 6am-6pm (or 24/7 for some) | Maximises solar utilisation |
System Sizing for Different Industrial Applications
| Facility Type | Typical Load | Recommended Solar | Annual Generation | Annual Savings |
|---|---|---|---|---|
| Small warehouse (1,000m²) | 50-80kW | 100kW | 146,000 kWh | $36,000-$55,000 |
| Manufacturing (2,000m²) | 100-200kW | 200-300kW | 292,000-438,000 kWh | $73,000-$166,000 |
| Cold storage (3,000m²) | 200-400kW | 300-500kW | 438,000-730,000 kWh | $110,000-$277,000 |
| Food processing (5,000m²) | 300-600kW | 500kW-1MW | 730,000-1,460,000 kWh | $182,000-$555,000 |
| Large industrial (10,000m²+) | 500kW-2MW | 1MW+ | 1,460,000+ kWh | $365,000+ |
The Full Cost Breakdown (2026 Pricing)
| System Size | Cost per Watt | Total Cost | STC Rebate (from Oct 2026) | Net Cost | Annual Savings | Payback |
|---|---|---|---|---|---|---|
| 100kW | $1.00-$1.20 | $100,000-$120,000 | $20,000-$24,000 | $76,000-$100,000 | $36,000-$45,000 | 2.1-2.5 years |
| 200kW | $0.90-$1.10 | $180,000-$220,000 | $36,000-$44,000 | $136,000-$180,000 | $73,000-$83,000 | 1.9-2.2 years |
| 300kW | $0.85-$1.05 | $255,000-$315,000 | $51,000-$63,000 | $192,000-$255,000 | $110,000-$120,000 | 1.7-2.1 years |
| 500kW | $0.80-$1.00 | $400,000-$500,000 | $80,000-$100,000 | $300,000-$400,000 | $182,000-$200,000 | 1.6-2.0 years |
| 1MW | $0.75-$0.95 | $750,000-$950,000 | $150,000-$190,000 | $560,000-$760,000 | $365,000-$400,000 | 1.5-1.9 years |
*Assumes NSW Zone 3 solar irradiance, 75% self-consumption, $0.30/kWh average grid rate, $40 STC price*
Adding Battery Storage: Eliminating Demand Charges
For industrial facilities with high demand charges ($15-$45/kVA/month), adding battery storage to solar creates a second revenue stream: demand charge reduction.
A 100kW/200kWh battery system costs $120,000-$180,000 and can reduce peak demand by 80-100kW — saving $14,400-$54,000/year in demand charges alone, on top of energy arbitrage savings.
Combined solar + battery payback for industrial: 2.5-4 years (depending on demand charge structure)
Industries Benefiting Most from Solar in 2026
Cold Storage & Refrigeration
- Constant cooling load (24/7) means high self-consumption
- Thermal mass allows "solar sponging" — pre-cool during solar hours
- Typical saving: 50-60% of energy costs
Manufacturing
- Daytime production aligns perfectly with solar generation
- High energy intensity means faster payback
- Typical saving: 40-55% of energy costs
Warehousing & Logistics
- Massive roof areas with minimal shading
- Growing EV fleet charging adds daytime load
- Typical saving: 45-60% of energy costs
Food & Beverage Processing
- High hot water demand (heat pump + solar integration)
- Refrigeration + cooking loads during production hours
- Typical saving: 35-50% of energy costs
Cable Co's Industrial Solar Capability
Cable Co's Renewables Division has completed 250+ industrial solar installations across SA, ACT, QLD, NSW, and WA — from 100kW warehouse systems to 1MW+ manufacturing facilities. Our integrated capability means we handle:
- Structural engineering assessment (roof load capacity)
- Electrical design and grid connection application
- Switchboard upgrades and protection coordination
- Solar installation (CEC-accredited)
- Battery storage integration
- Demand management system commissioning
- All rebate paperwork (STCs, ESS, PDRS)
- Ongoing monitoring and maintenance (24/7 Command Centre)
Call: 1800 117 177 | Email: renewables@cable-co.com.au