Business Solar & Battery Funding in 2026: What Victorian Organisations Can Actually Access

Q: Q: 1. Victorian Energy Upgrades for commercial solar

A: One of the more useful developments for Victorian businesses has been the introduction of commercial and industrial solar into the Victorian Energy Upgrades (VEU) program.The incentive commenced in September 2025 and provides financial support for eligible commercial solar installations.It is also broader than the term “commercial” might suggest.Eligible sites can include Victorian businesses, community buildings, schools, hospitals and other non-residential facilities, subject to the program requirements.For the standard activity, eligible solar installations are currently between 30 kW and 200 kW.And importantly, the program is not necessarily limited to rooftop solar.Ground-mounted systems may also qualify, which is useful for organisations with suitable land, large regional sites, agricultural properties or buildings where roof condition and structural capacity make rooftop solar less attractive.Current indicative Victorian Government examples include:Solar system Indicative VEU discount*50 kW $4,55075 kW $6,860100 kW $9,100150 kW $25,760200 kW $34,300*Based on an indicative VEEC certificate value of $70. Actual certificate values and project discounts vary.For a business already considering solar, these are meaningful numbers.They may not fund the entire project, but they can improve payback, reduce upfront capital and potentially change the internal approval process for a project that was sitting just outside an organisation's investment criteria.

Q: Q: 2. Federal solar incentives are changing as well

A: The Federal Small-scale Renewable Energy Scheme (SRES) has been part of the Australian solar market for a long time. Eligible solar systems create Small-scale Technology Certificates, commonly referred to as STCs.In most projects, the customer doesn't need to trade those certificates themselves. Their value is generally incorporated into the project price as an upfront discount.At present, the scheme applies to eligible solar systems up to 100 kW.However, as we covered recently, the Federal Government has announced plans to increase that limit to 1 MW from 1 October 2026, subject to the required regulations being implemented.That is potentially a fairly substantial change for the commercial market.There are plenty of Victorian sites where 100 kW of solar is nowhere near the technical or economic limit of the property.Schools, warehouses, manufacturing facilities, farms, recreation facilities, accommodation sites and community infrastructure can all have load profiles and available space capable of supporting significantly larger systems.Removing the 100 kW threshold from the incentive equation gives businesses more freedom to look at what system size actually suits the site.For some Victorian projects, Federal renewable energy certificates may also sit alongside the Victorian Energy Upgrades incentive."The exact eligibility and structure needs to be checked for each project, but it is a good example of why it is worth understanding the available incentives before finalising the design.

Q: Q: 3. Battery storage now has some Federal support

A: Battery storage is also starting to receive more direct government support.The Federal Cheaper Home Batteries Program commenced in July 2025 and, despite the name, can also apply to eligible businesses and community organisations. The program provides an upfront incentive for eligible battery systems. Following changes introduced in 2026, qualifying systems can have a nominal capacity between 5 kWh and 100 kWh, with the incentive applying to up to the first 50 kWh of usable capacity. This makes it particularly relevant to small and medium commercial sites. There are some important limitations, however.For grid-connected commercial systems, battery eligibility is linked to a qualifying solar PV system and other technical requirements. It is also worth recognising that a 50 or 100 kWh battery is quite different from the larger commercial and industrial battery systems now being installed across Victoria. Once projects move into several hundred kilowatt-hours, or into megawatt-hour scale storage, the project structure and financial case become very different.At that size, we would generally be looking beyond a simple rebate and considering the battery's role across demand management, tariffs, resilience, load shifting and potentially energy market participation.

Q: Q: 4. What if the solar system is larger than 200 kW?

A: This is another area where the headline program limits don't necessarily tell the whole story.The standard VEU commercial solar activity currently covers systems from 30 kW to 200 kW.For larger installations, there may still be opportunities through the Victorian Energy Upgrades measurement and verification pathway. These projects are assessed differently. Instead of applying a standard certificate calculation based primarily on the equipment being installed, the project looks more closely at the actual energy and emissions savings being delivered. There is more work involved in developing and verifying these projects, so it will not suit every installation.But for larger energy users, the value can justify taking a closer look. It is another reason we wouldn't automatically assume that a 300 kW, 500 kW or larger project is simply “too big for incentives”. The mechanism may just be different.

Q: Q: 5. And what about actual grants?

A: There are still government grants available from time to time. The problem is that they are often presented online as though there is a permanent pool of grant funding available for any business that wants to install solar. That isn't really how the market works.Most direct government grants are targeted. They might relate to manufacturing, electrification, regional development, energy efficiency, innovation, new technology, community infrastructure or a particular industry. They also tend to have defined funding rounds and relatively short application windows. Several programs that still regularly appear in search results have already closed. For example, previous Federal Energy Efficiency Grants for SMEs are no longer open, and a number of Victorian sustainability funding programs have also concluded.That doesn't mean businesses should ignore future grants.We regularly keep an eye on them because the right program can make a significant difference to the right project. But we don't think a business should generally design an energy project around the hope that a government grant eventually appears. Our preference is to build the commercial case first. If the project already makes sense, available incentives can improve it. If the project only works because of an uncertain future grant, there is probably more work to do.

Q: Q: 6. Funding is not the same as a grant

A: This distinction is also important. Sometimes a business has a very good solar or battery project but simply doesn't want to allocate several hundred thousand dollars of capital to energy infrastructure. That doesn't necessarily make it a poor project. It may simply need a different funding structure. Depending on the organisation and the asset, options can include:conventional business or equipment financeleasingenvironmental upgrade financeenergy performance contractsthird-party ownershippower purchase agreementsspecialist clean-energy finance.Environmental Upgrade Finance, for example, can allow eligible building upgrades to be funded through an external financier, with repayments collected through a council charge.The Clean Energy Finance Corporation also works through banks, finance providers and investment partners to support clean-energy investment. These aren't grants - the capital still needs to be repaid. But they can change the conversation considerably. Instead of asking whether an organisation wants to spend $300,000 from this year's capital budget, the question may become whether the savings produced by the project can support the financing cost over time.For some organisations, that is a much easier proposition. Our role is to assist our business or organisatn in making the smartest financial descision that lasts the next 5 years;

J Thompson
Aug 17
6 min read

Ask almost any business considering solar or battery storage what government assistance is available and the first question is usually:

“Are there any grants available?”

Sometimes there are.

But the answer in 2026 is a little more interesting than simply finding an open government grant.

There are now a number of different incentives available to Victorian businesses and organisations, including Victorian Energy Upgrades, Federal renewable energy certificates, battery incentives and various finance options. Some of these can significantly improve the commercial case for a project.

Others are quite specific in terms of who can access them, what equipment qualifies and when the project needs to be completed. There are also plenty of programs still appearing in Google searches that closed years ago. So we thought it was worth taking a more practical look at what is actually available to Victorian organisations now — and where some of these incentives may fit into a commercial energy project.

Click on the expandable headings below to read more

1. Victorian Energy Upgrades for commercial solar

One of the more useful developments for Victorian businesses has been the introduction of commercial and industrial solar into the Victorian Energy Upgrades (VEU) program.

The incentive commenced in September 2025 and provides financial support for eligible commercial solar installations.

It is also broader than the term “commercial” might suggest.

Eligible sites can include Victorian businesses, community buildings, schools, hospitals and other non-residential facilities, subject to the program requirements.

For the standard activity, eligible solar installations are currently between 30 kW and 200 kW.

And importantly, the program is not necessarily limited to rooftop solar.

Ground-mounted systems may also qualify, which is useful for organisations with suitable land, large regional sites, agricultural properties or buildings where roof condition and structural capacity make rooftop solar less attractive.

Current indicative Victorian Government examples include:

Solar system Indicative VEU discount*

50 kW $4,550

75 kW $6,860

100 kW $9,100

150 kW $25,760

200 kW $34,300

*Based on an indicative VEEC certificate value of $70. Actual certificate values and project discounts vary.

For a business already considering solar, these are meaningful numbers.

They may not fund the entire project, but they can improve payback, reduce upfront capital and potentially change the internal approval process for a project that was sitting just outside an organisation's investment criteria.

2. Federal solar incentives are changing as well

The Federal Small-scale Renewable Energy Scheme (SRES) has been part of the Australian solar market for a long time. Eligible solar systems create Small-scale Technology Certificates, commonly referred to as STCs.

In most projects, the customer doesn't need to trade those certificates themselves. Their value is generally incorporated into the project price as an upfront discount.

At present, the scheme applies to eligible solar systems up to 100 kW.

However, as we covered recently, the Federal Government has announced plans to increase that limit to 1 MW from 1 October 2026, subject to the required regulations being implemented.

That is potentially a fairly substantial change for the commercial market.

There are plenty of Victorian sites where 100 kW of solar is nowhere near the technical or economic limit of the property.

Schools, warehouses, manufacturing facilities, farms, recreation facilities, accommodation sites and community infrastructure can all have load profiles and available space capable of supporting significantly larger systems.

Removing the 100 kW threshold from the incentive equation gives businesses more freedom to look at what system size actually suits the site.

For some Victorian projects, Federal renewable energy certificates may also sit alongside the Victorian Energy Upgrades incentive.

"The exact eligibility and structure needs to be checked for each project, but it is a good example of why it is worth understanding the available incentives before finalising the design."

3. Battery storage now has some Federal support

Battery storage is also starting to receive more direct government support.

The Federal Cheaper Home Batteries Program commenced in July 2025 and, despite the name, can also apply to eligible businesses and community organisations. The program provides an upfront incentive for eligible battery systems. Following changes introduced in 2026, qualifying systems can have a nominal capacity between 5 kWh and 100 kWh, with the incentive applying to up to the first 50 kWh of usable capacity. This makes it particularly relevant to small and medium commercial sites. There are some important limitations, however.

For grid-connected commercial systems, battery eligibility is linked to a qualifying solar PV system and other technical requirements. It is also worth recognising that a 50 or 100 kWh battery is quite different from the larger commercial and industrial battery systems now being installed across Victoria. Once projects move into several hundred kilowatt-hours, or into megawatt-hour scale storage, the project structure and financial case become very different.

At that size, we would generally be looking beyond a simple rebate and considering the battery's role across demand management, tariffs, resilience, load shifting and potentially energy market participation.

4. What if the solar system is larger than 200 kW?

This is another area where the headline program limits don't necessarily tell the whole story.

The standard VEU commercial solar activity currently covers systems from 30 kW to 200 kW.

For larger installations, there may still be opportunities through the Victorian Energy Upgrades measurement and verification pathway. These projects are assessed differently. Instead of applying a standard certificate calculation based primarily on the equipment being installed, the project looks more closely at the actual energy and emissions savings being delivered. There is more work involved in developing and verifying these projects, so it will not suit every installation.

But for larger energy users, the value can justify taking a closer look. It is another reason we wouldn't automatically assume that a 300 kW, 500 kW or larger project is simply “too big for incentives”. The mechanism may just be different.

5. And what about actual grants?

There are still government grants available from time to time. The problem is that they are often presented online as though there is a permanent pool of grant funding available for any business that wants to install solar. That isn't really how the market works.

Most direct government grants are targeted. They might relate to manufacturing, electrification, regional development, energy efficiency, innovation, new technology, community infrastructure or a particular industry. They also tend to have defined funding rounds and relatively short application windows. Several programs that still regularly appear in search results have already closed. For example, previous Federal Energy Efficiency Grants for SMEs are no longer open, and a number of Victorian sustainability funding programs have also concluded.

That doesn't mean businesses should ignore future grants.

We regularly keep an eye on them because the right program can make a significant difference to the right project. But we don't think a business should generally design an energy project around the hope that a government grant eventually appears. Our preference is to build the commercial case first. If the project already makes sense, available incentives can improve it. If the project only works because of an uncertain future grant, there is probably more work to do.

6. Funding is not the same as a grant

This distinction is also important. Sometimes a business has a very good solar or battery project but simply doesn't want to allocate several hundred thousand dollars of capital to energy infrastructure. That doesn't necessarily make it a poor project. It may simply need a different funding structure. Depending on the organisation and the asset, options can include:

conventional business or equipment finance
leasing
environmental upgrade finance
energy performance contracts
third-party ownership
power purchase agreements
specialist clean-energy finance.

Environmental Upgrade Finance, for example, can allow eligible building upgrades to be funded through an external financier, with repayments collected through a council charge.

The Clean Energy Finance Corporation also works through banks, finance providers and investment partners to support clean-energy investment. These aren't grants - the capital still needs to be repaid. But they can change the conversation considerably. Instead of asking whether an organisation wants to spend $300,000 from this year's capital budget, the question may become whether the savings produced by the project can support the financing cost over time.

For some organisations, that is a much easier proposition. Our role is to assist our business or organisatn in making the smartest financial descision that lasts the next 5 years;

Nyawi Pty Ltd works with businesses and organisations to understand energy consumption, identify available funding and incentives, and develop practical strategies around solar, battery storage, energy procurement and energy resilience.

If your organisation has previously investigated solar or battery storage and the numbers didn't quite work, it may be worth running them again. The incentive landscape has changed considerably.

And in some cases, so has the business case.

This article provides general information only. Government programs, certificate values, eligibility criteria and available funding can change. Current requirements should always be confirmed before entering into contracts or committing to expenditure.