Government Incentives for Small Business Solar in Victoria

These incentives are currently available, apply to many small-scale and mid-scale commercial solar installations,
and are delivered as upfront discounts rather than cash rebates or loans.

Victorian Commercial Solar Discounts (VEU Program)

In Victoria, eligible businesses may access upfront solar PV discounts through the Victorian Energy Upgrades (VEU) program.

• Eligible commercial and industrial premises can receive an upfront discount on approved solar PV systems
• The discount is applied through VEU-accredited providers at the time of installation
• Solar PV systems typically between 30 kW and 200 kW may qualify
• The value of the discount depends on system size and the energy efficiency certificates generated

These discounts are designed to reduce the upfront cost of commercial solar and can often be combined with federal incentives.

Victorian Energy Upgrades – Solar PV (Official Source)

Federal Solar Incentives (STCs)

Small businesses installing eligible solar systems may also benefit from the Small-scale Renewable Energy Scheme (SRES), administered by the Australian Government.

• Solar systems generally under 100 kW may be eligible for Small-scale Technology Certificates (STCs)
• STCs represent the renewable electricity the system is expected to generate over time
• STCs are usually assigned to the installer
• Their value is applied as an upfront discount on the system cost
• The number of STCs depends on system size, installation location, and year of installation

Because STC prices fluctuate with market conditions, commercial solar system pricing is typically shown after the STC discount has already been applied.

What About Larger Commercial Solar Systems?

Larger commercial solar systems may instead fall under the Large-scale Renewable Energy Target, using Large-scale Generation Certificates (LGCs) rather than STCs.

LGCs operate differently, are created over time based on actual electricity generation, and are assessed separately depending on system size and business structure.

How These Incentives Work Together

For many Victorian small businesses, state-based VEU discounts and federal STC incentives can be combined, significantly reducing the upfront cost of a commercial solar system.

Eligibility depends on system size and design, business premises type, installer accreditation, and program rules at the time of installation.

Because incentive programs and eligibility criteria can change, all approvals should be confirmed before installation begins.