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Onsite Energy Opportunities in Australia 2025 to 2026
October 15, 2025 at 1:00 PM
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Commercial and industrial organisations in Australia are entering a period where onsite energy investment offers some of the strongest returns seen in the past decade. Technology costs have continued to fall, electricity prices remain high, incentives are available at both Commonwealth and State levels and digital platforms are now mature enough to provide real operational value. These factors make 2025 to 2026 an ideal window for commercial adoption of onsite solar, battery storage, digital energy systems, efficiency upgrades, virtual power plants and fleet electrification.

Onsite energy is no longer a technical upgrade. It is a strategic lever for operational resilience, long term cost control and credible decarbonisation. When supported by digital and AI enabled platforms, it becomes a connected system that improves financial performance while strengthening sustainability reporting under the Australian Sustainability Reporting Standards.

Why 2025 to 2026 is an inflection point

Technology maturity
Solar photovoltaic systems and behind the meter batteries have reached a high level of commercial maturity. The Australian Renewable Energy Agency continues to support innovation in distributed energy, digital control and demand flexibility. AI enabled software for monitoring, optimisation and reporting has expanded significantly.

Economic and tariff conditions
Electricity tariffs for commercial customers remain elevated across the National Electricity Market with strong differences between peak and off peak periods. Organisations with onsite generation and storage can reduce exposure to volatility, manage demand charges and achieve more predictable operating costs.

Reporting expectations
The Australian Sustainability Reporting Standards introduce higher expectations for accuracy and verification of Scope 2 and relevant Scope 3 emissions. Digital systems improve traceability, controls and assurance readiness.

Flexibility and market access
Virtual power plants and flexibility markets have become viable options for commercial sites, particularly with batteries or controllable loads that meet telemetry and response requirements.

Technology assessment for commercial sites

Rooftop solar photovoltaic systems
Rooftop solar remains the most attractive onsite investment for many commercial buildings. Payback periods are typically between three and six years. Solar improves sustainability ratings, reduces Scope 2 emissions and provides a long term hedge against rising tariffs.

Incentives include Small Scale Certificates for systems up to one hundred kilowatts, Large Scale Certificates for larger systems and State support such as the Victorian Energy Upgrades scheme.

Behind the meter battery storage
Batteries deliver value through peak demand savings, time shifting, resilience and participation in virtual power plant or frequency control services. Payback is normally between seven and twelve years.

Incentives include the Commonwealth battery discount programme and the New South Wales virtual power plant battery incentive, with additional State schemes depending on location.

Energy management systems and controls
Energy management systems offer fast and reliable savings. Payback typically ranges from one to three years. These systems support accurate solar and storage planning and improve reporting readiness under the Australian Sustainability Reporting Standards.

Incentives include Victorian Energy Upgrades and the New South Wales Energy Savings Scheme.

Energy efficiency measures
Efficiency upgrades deliver rapid returns and strengthen the economics of all other onsite systems. Lighting and controls often achieve payback in under three years, and heating, ventilation and air conditioning in three to seven years. Efficiency improves building value, reduces load and enhances the economics of solar and storage.

Virtual power plant and flexibility participation
Virtual power plants offer additional revenue but should be treated as supplementary rather than a core business case. Participation requires compliant telemetry, adequate capacity and an agreement with a virtual power plant aggregator.

E-mobility and charging
Workplace and depot charging enable fleet electrification which often outperforms internal combustion vehicles on total cost of ownership. It boosts sustainability performance and prepares organisations for future vehicle to grid opportunities.

Incentives include fringe benefits tax exemptions for eligible electric vehicles and specific charger related support in some States.

The role of digital platforms and AI

Digital and AI enabled energy platforms are now central to extracting full value from onsite energy investments. They streamline operations, increase returns and support governance and reporting. Key digital capabilities can be summarised as:

Real time monitoring and forecasting
Live data across solar, battery and building loads. AI models help identify anomalies and predict usage.

Automated optimisation
Intelligent scheduling of battery charging, building controls and load shifting based on price signals and forecasts. Automated virtual power plant dispatch is increasingly common.

Billing and settlement automation
Automated cost allocation, charging transactions and reconciliation of flexibility revenue.

Reporting and assurance readiness
Automated Scope 2 calculations, integration of supplier emissions for Scope 3 and audit ready data trails aligned with the Australian Sustainability Reporting Standards.

Digital twin modelling
Scenario modelling for system sizing, tariff evaluation and future emissions forecasting.

Digital platforms reduce operational complexity, improve financial performance and provide a strong foundation for compliance and governance.

Incentives available in 2025 to 2026

Commonwealth incentives

  • Small Scale Certificate scheme
  • Large Scale Certificate scheme
  • Commonwealth battery discount programme for eligible systems
  • Instant asset write off where applicable

State incentives

  • Victoria: Victorian Energy Upgrades scheme and commercial solar support
  • New South Wales: Energy Savings Scheme and virtual power plant battery incentive
  • Queensland: Solar and battery programmes depending on funding cycles
  • South Australia: Strong distributed energy and virtual power plant environment
  • Western Australia: Distributed energy resource initiatives

A practical twenty four month roadmap

Months 0 to 6

  • Implement energy efficiency measures
  • Deploy energy management and digital monitoring systems
  • Assess solar feasibility and incentives
  • Develop fleet charging strategy

Months 6 to 18

  • Install rooftop solar
  • Pilot battery storage at priority sites
  • Adopt digital optimisation tools
  • Install workplace or depot charging
  • Update procurement processes to include energy and emissions considerations

Months 18 to 24

  • Scale solar and efficiency across sites
  • Register assets in virtual power plant programmes
  • Begin quarterly sustainability reporting aligned with ASRS
  • Expand fleet charging infrastructure
  • Evaluate early vehicle to grid opportunities

Strategic and financial benefits

Onsite energy reduces operating costs, increases resilience, improves building value, creates verifiable emissions reductions, supports new revenue streams and strengthens decision making across finance, operations and sustainability.

Risks and mitigation

  • Network export limits require careful system sizing
  • Flexibility revenue should be modelled conservatively
  • Incentive eligibility differs across jurisdictions
  • High quality data is essential for accurate reporting
  • Energy and digital capability must be developed early to support long term success

GG Advisory insight

Onsite energy in 2025 to 2026 functions as an integrated system combining generation, storage, efficiency, electrification and digital intelligence. Organisations that align these components into a unified strategy will benefit from long term cost savings, enhanced resilience and credible decarbonisation outcomes.

GG Advisory assists commercial organisations to design and implement integrated onsite energy programmes that deliver operational performance, transparency and long term sustainability impact.