Australia Offers Up to AUD 34,000 Subsidy for Commercial and Industrial Rooftop PV Systems

Australia continues to lead the global rooftop photovoltaic (PV) revolution, with new incentives accelerating the adoption of solar energy in the commercial and industrial (C&I) sectors. As of 2025, rooftop solar capacity across the country has exceeded 25 GW, generating over 33 TWh annually, or nearly 15% of Australia’s total electricity demand, according to data from the Australian Energy Market Operator (AEMO).

To further support this momentum, the Victorian Government has officially launched Part 47 of the Victorian Energy Upgrades (VEU) program, which introduces a commercial and industrial solar photovoltaic system activity effective from 29 September 2025. This new measure—outlined in the Victorian Energy Upgrades Specifications 2018, Version 21.0—is designed to encourage medium- and large-scale businesses to deploy rooftop PV systems as part of the state’s broader energy decarbonization plan.

Under Part 47, eligible businesses can receive rebates of up to AUD 34,000 per installation, depending on system capacity and greenhouse gas (GHG) abatement potential. The initiative builds upon the success of previous VEU activities targeting energy-efficient water heaters, air-source heat pumps, and lighting systems, extending support to solar electricity generation for the first time within the program’s history.

Installation Scenario

1. Scenario 47A: 30-100kW Systems

This scenario is primarily for small- to medium-sized commercial and industrial PV systems and requires compliance with the negotiated connection contract with the relevant distribution network service provider. Furthermore, both new and modified connections must comply with these requirements. PV panels and inverters cannot be used casually; they must be approved by the Clean Energy Council.

1. Scenario 47B: 100-200kW Systems

This scenario is for larger commercial and industrial PV systems, such as those on the rooftops of large factories and warehouses. This scenario also requires compliance with the negotiated connection contract, both for new and modified connections. PV panels and inverters must also be approved by the Clean Energy Council. The larger the project, the more stringent the equipment and construction specifications.

Key Policy Features

The new subsidy applies to commercial and industrial rooftop PV systems that meet specific energy efficiency and installation standards set by the Department of Energy, Environment and Climate Action (DEECA). To qualify for the rebate:

• Target customers: Industrial and commercial enterprises.
• System size: Rooftop PV systems with a capacity of 30-200kW.
• Component requirements: PV modules must be from officially verified brands to prevent businesses from receiving low-quality panels.
• Fully monitorable: The system must have an online monitoring platform, allowing businesses to not only view power generation but also compare their own electricity usage in real time.
• Standardized design: Installers must adhere to Australian PV design and grid connection standards to ensure safety and compliance.
• Warranty requirements: A minimum 10-year warranty for modules and a minimum 5-year warranty for inverters provide a safeguard for business investments. If the manufacturer is not located in Australia, the local warranty representative and contact information must be clearly stated.
• Grid connection threshold: The total inverter capacity must be at least 30kVA and must meet the grid company's access agreement.

Market Implications

The C&I rooftop solar segment has been one of Australia’s fastest-growing renewable markets. According to the Clean Energy Council’s 2025 report, more than 3.6 million homes and businesses nationwide now operate rooftop systems, with commercial installations accounting for nearly 40% of new capacity. As energy prices remain volatile, companies are increasingly viewing self-generation as a strategic investment rather than a cost-saving measure.

By integrating commercial PV into the VEU program, Victoria strengthens its position as a leader in distributed energy policy design. The AUD 34,000 rebate cap not only offsets upfront capital costs but also provides a clear framework for tracking environmental performance through certified abatement metrics.

With the inclusion of Part 47, Victoria’s energy upgrade framework now provides a comprehensive incentive structure across both energy efficiency and renewable generation domains. As more states look to emulate this integrated approach, the commercial rooftop PV sector is expected to continue expanding, playing a crucial role in achieving Australia’s national target of 82% renewable electricity by 2030.