STC threshold set to rise from 100kW to 1MW

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The Clean Energy Regulator has confirmed plans to lift the size limit for Small-scale Technology Certificates (STCs) from 100kW to 1MW, targeting a start date of 1 October 2026. It’s a tenfold increase in the size of solar system eligible for the scheme, a meaningful shift for commercial and industrial projects that currently fall into the less favourable Large-scale Generation Certificate (LGC) category above 100kW. 

Why it matters in Victoria 

Victorian projects stand to benefit twice over. Under Activity 47 of the Victorian Energy Upgrades program, eligible systems between 30kW and 200kW can already claim Victorian Energy Efficiency Certificates (VEECs), which we covered in detail in Activity 47: A new way to fund commercial solar in Victoria. Right now, only systems under 100kW can stack STCs on top. Once the new threshold takes effect, that stacking opportunity extends across the full Activity 47 range, up to 200kW. 

The right certificate strategy depends on decisions made at the design and metering stage. Work it out before you quote a system, not after installation starts. 

What it’s worth 

  • 200kW: STCs + Activity 47 VEECs ≈ $82,916 
  • 500kW: staged approach, Activity 47 on the first 200kW, VEECs via M&V on the remaining 300kW ≈ $174,689 
  • 1MW: three pathways worth comparing:  
  • STCs only (expanded SRES across the whole system): ≈ $222,187 
  • Staged stacking (Activity 47 on the first 200kW, VEECs via M&V on the rest): ≈ $280,019 
  • Traditional M&V across the whole project, no STC claim: ≈ $341,806 

The result at 1MW is counterintuitive: the simplest structure, one system assessed as a whole, delivers the highest value, ahead of the staged, stacked approach most people would design toward. 

The change is now locked in

The regulations enabling this expansion, the Renewable Energy (Electricity) Amendment (Mid-scale Solar) Regulations 2026, are registered and in force, so the 1 October 2026 start date is confirmed. One timing detail worth flagging to clients: STC applications for mid-scale systems won’t open until mid to late November 2026, even though eligibility starts from 1 October. Certificate prices still move with the market, so treat the dollar figures above as indicative rather than fixed. The 1MW traditional M&V figure holds under today’s rules regardless of any of this timing.

Next step 

Certificate strategy needs to be part of the conversation before you quote a system. Talk to Northmore Gordon to work through the right pathway for your next project. 

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