Australia on Wednesday announced an expansion of its rooftop solar subsidy programme, aiming to reduce the cost of installing solar systems on factories, warehouses, farms and other commercial buildings by about 20%.
The initiative broadens existing incentives that have largely supported rooftop solar and battery installations in homes, as Canberra seeks to accelerate the country’s transition to renewable energy and reduce its dependence on coal-fired electricity generation.
Climate Change and Energy Minister Chris Bowen said the revised policy would increase the maximum subsidised system size to 1 megawatt (MW), around 10 times larger than the previous limit, allowing more businesses to qualify for financial support.
Bowen said the larger systems would significantly lower upfront installation costs while helping commercial, industrial and agricultural users reduce their long-term electricity bills.
The minister also announced plans to ask the Australian Energy Market Commission to fast-track approval processes, a move aimed at speeding up the rollout of new rooftop solar projects.
The expansion comes as Australia continues to build on one of the world’s highest rates of rooftop solar adoption, with around one-third of homes already equipped with solar panels.
According to the government, residential rooftop solar systems currently generate about 10% of Australia’s electricity supply, highlighting the growing role of distributed renewable energy in the national grid.
The latest measures are expected to encourage wider investment in clean energy across the business sector while supporting the government’s broader emissions reduction and energy transition goals.