The federal government has backed a $100 million program specifically for solar and battery projects that have been stuck in the middle of Australia’s energy system for years. Not big enough for utility-scale investment mechanisms. Not small enough to slot into the household rebate schemes most people know about.
At Winki Energy, we have been sitting down with commercial clients across Victoria who are trying to work out what this actually means for them. This article walks through exactly who the Distribution Connected Accelerator Program (DCAP) is for, how the money flows, and what you should look into if you are a developer, council, or business running a larger commercial site.
It is worth knowing upfront that this is not a grant. It is structured debt financing. That distinction matters, and we will explain it properly below.
What Is the Distribution Connected Accelerator Program?
The Distribution Connected Accelerator Program, or DCAP, is a $100 million financing initiative from the Clean Energy Finance Corporation (CEFC), delivered in partnership with infrastructure debt manager Infradebt.
The program was created to get more mid-scale renewable energy projects off the ground. It does this by providing concessional senior debt to project developers, so they can access finance they have traditionally struggled to lock in.
Projects funded through the DCAP connect to Australia’s distribution network rather than the high-voltage transmission grid. That is a meaningful distinction because distribution-connected projects can often move from development to operation significantly faster. They use the existing poles and wires infrastructure already in the ground, bypassing the connection queues that add cost and time to larger developments.
The CEFC put it simply: smaller, ready-to-connect wholesale generation projects face barriers due to size and transaction costs. By providing targeted capital with certainty and efficiency of process, this financing helps unlock a segment of the market that private lenders have consistently overlooked, while supporting a more resilient energy system overall.
In short, the DCAP is filling a gap that both private lenders and existing government schemes have left open for years.
Who This Program Is Actually For
For years, there has been a well-documented problem in Australia’s clean energy pipeline. Projects at the utility-scale end have attracted the bulk of private investment. At the residential end, homeowners have had access to programs like the Small-scale Renewable Energy Scheme (SRES). But in the middle, a whole category of viable projects had nowhere to go.
Mid-scale projects in the 1MW to 5MW range are too big to access household schemes and too small to attract the large-scale financing mechanisms that utility projects use. Transaction costs relative to project size make them uneconomic for most private lenders. So they simply do not get built. The CEFC and energy industry bodies have referred to this segment as the “missing middle” of Australia’s clean energy transition.
The DCAP targets this gap directly. Infradebt CEO Alexander Austin described the opportunity like this: smaller, distribution-connected projects have a critical role to play in Australia’s energy transition because they can often move from development to operation significantly faster than large-scale alternatives.
Who this actually applies to in practice:
- Developers building mid-scale hybrid solar and battery systems
- Local councils exploring community energy infrastructure
- Large commercial sites planning dedicated generation assets above 1MW
- Any entity with a project up to 5MW connected to the distribution network
If you are a homeowner adding panels to your roof or a small business buying a battery system, this program is not aimed at you. There are other, more suitable programs for those situations, including the ANZ/CEFC finance discount covered in the next section.
The DCAP is for people and organisations with projects at or above the scale where typical commercial finance becomes too expensive and household schemes stop applying.
How the Funding Works
The DCAP provides concessional senior debt. That means it is a loan at a below-market interest rate, not a grant. The money does not arrive as a rebate or cash payment. It is structured financing that sits senior in the capital stack of a project, which makes it attractive to developers who need to bring in other investors or lenders alongside it.
Infradebt manages the program and runs a competitive selection process to shortlist project proponents. That means applicants go through a formal assessment before being offered a position in the program. It is not first-come-first-served.
Key details to know:
- Up to 16 hybrid solar, battery, and battery retrofit projects will be funded
Projects must be ready to commence construction in 2027 - The primary focus is on projects up to 5MW, though larger projects can be considered
- All projects must be connected to the distribution network, not the transmission grid
- Infradebt leads the competitive process to shortlist proponents
The 2027 construction-ready deadline is an important constraint. If you are a developer or business owner with a project at an early stage, time is already a factor. The assessment process, planning approvals, and engineering work needed to reach a construction-ready state take significant time. Any project intending to access this funding should already be well into development.
To register interest or find out more about the selection process, go directly to Infradebt’s website for current application details. The CEFC’s program page also outlines the initiative and what it is designed to support.
Sources: CEFC media release, August 2026 | PV Tech analysis
The Related ANZ/CEFC Finance Discount (and Why It Matters for Smaller Businesses)
Alongside the DCAP, there is a separate program that is more relevant to everyday small and medium businesses buying energy equipment.
ANZ and the Clean Energy Finance Corporation have expanded their long-running partnership with an additional $150 million to help Australian SMEs access discounted finance for energy-efficient equipment. This brings the CEFC’s total commitment to the ANZ Energy Efficient Asset Finance Program to $600 million since the partnership began in 2017. To date, more than 1,600 Australian businesses have used the program, with over $444 million in discounted finance provided.
Under the arrangement, ANZ and the CEFC each contribute 0.4% per annum toward a total interest rate discount of 0.8% per annum on eligible asset finance loans. It is not a large number in isolation, but across the term of a loan for a commercial solar system, a battery, an EV fleet, or energy-efficient equipment, it adds up.
What the finance can be used for:
- Rooftop solar and battery storage
- Electric vehicles
- Energy-efficient equipment
- Recycling technology
A Victorian manufacturer called Lago Smallgoods used a CEFC-backed finance arrangement and reported a 30% increase in production capacity and roughly a 20% reduction in costs after investing in new equipment through the discounted finance pathway. That kind of outcome is the practical case for these programs.
This finance program and the DCAP are separate mechanisms, but they are not mutually exclusive for the right kind of project. A business could potentially use the SRES to reduce the upfront system cost, and the ANZ/CEFC discounted finance to reduce borrowing costs on the remainder. Eligibility and lender terms would need to be confirmed directly with ANZ.
What This Means for Victorian Businesses and Developers
Victoria has a strong pipeline of commercial solar activity, and programs like the DCAP give developers and commercial operators an additional pathway to fund projects that have historically been difficult to finance.
At Winki Energy, we work with commercial clients across Metro Melbourne, Greater Geelong, the Bellarine Peninsula, the Surf Coast, and broader regional Victoria. We are CEC-accredited electricians who handle installs entirely in-house. We have put in close to 30MW of solar capacity in a single year across residential and commercial sites, and we have been doing this long enough to know what works and what does not.
We are not a finance broker or lending institution, so we cannot process a DCAP application on your behalf. What we do have is genuine experience helping commercial clients work through the practical side of getting a solar or battery system designed, permitted, and installed properly.
If you are a commercial site owner, a property developer, or a council thinking about a mid-scale project in Victoria, understanding these funding programs now is worthwhile. The DCAP is time-bound and competitive. The ANZ/CEFC finance discount is available to businesses buying equipment right now. And the SRES expansion from 100kW to 1MW has opened the tradeable certificate scheme to a wider range of commercial systems.
These programs work best when they are understood early, before the project is locked into a particular structure or procurement pathway. Getting the installation side planned alongside the finance side is the difference between a system that works efficiently on paper and one that actually performs in the field.
The Bottom Line
The Distribution Connected Accelerator Program is a practical step in addressing a genuine gap in Australia’s energy transition. Mid-scale solar and battery projects have been sitting on the shelf for years, waiting for the right financing to come together. This program gives some of them a viable pathway forward.
If you are running a commercial operation in Victoria and you have been thinking about a larger solar or battery investment, now is a good time to understand your options. Whether the DCAP applies to your specific project, or whether the ANZ/CEFC finance discount or SRES is more relevant, the conversation is worth having sooner rather than later.
Give the Winki Energy team a call or send us a message. We will be straight with you about what makes sense for your site, what does not, and where to point you if we are not the right fit.
About Winki Energy
Winki Energy is a CEC-accredited solar and electrical company with teams based in Torquay, Geelong, and Melbourne. They work with homeowners and commercial clients across Metro Melbourne, Greater Geelong, the Bellarine Peninsula, the Surf Coast, and regional Victoria. All installs are handled in-house by qualified electricians, with close to 30MW of solar capacity installed annually. Winki Energy holds a 5-star reputation across
COMMON QUESTIONS ABOUT 2 NEW FEDERAL PROGRAMS HELPING BUSINESSES INVEST IN SOLAR, BATTERIES & EFFICIENT EQUIPMENT
Two separate announcements from Climate Change and Energy Minister Chris Bowen, covering a new concessional loan scheme for mid-sized renewable projects, and an expanded discounted finance partnership between ANZ and the Clean Energy Finance Corporation (CEFC), both target the same core problem: the upfront cost of clean energy investment. Here’s what each one actually offers.
What is the Distribution Connected Accelerator Program?
Think of it as a $100 million pool of concessional loans aimed at small and mid-sized renewable energy projects that have historically struggled to get finance. The government’s calling this group the “missing middle” of Australia’s energy roadmap: projects that are too big for household schemes but too small to attract utility-scale investment. This program is built for exactly that gap.
How big are the projects this program supports?
Up to five megawatts per project. That’s enough to power a local community or a sizeable business, but nowhere near the scale of a utility farm. The scheme could fund up to 16 hybrid solar and battery projects in total.
Is there a deadline for these projects?
Yes. Projects need to be construction-ready by 2027. That’s worth planning around now. If this funding is on your radar, your project needs to be in a mature, shovel-ready state well ahead of that date, not something you’re putting together at the last minute.
Why is the government targeting this "missing middle" specifically?
Energy Minister Chris Bowen has been clear that big wind and solar farms aren’t the only way to strengthen the grid. Smaller, mid-scale projects matter too. Groups like the Smart Energy Council have long pushed for better support in this space, and this program is the government’s answer to that. Mid-sized commercial and community projects have historically been left out in the cold, sitting between the residential support programs and the utility-scale mechanisms. This fills that gap.
Separately, what is the ANZ/CEFC announcement about?
ANZ and the Clean Energy Finance Corporation have put another $150 million into their long-running partnership to make it easier for small and medium Australian businesses to access discounted finance for energy-efficient equipment and tech. That brings the CEFC’s total investment in the ANZ Energy Efficient Asset Finance Program to $600 million.
What can this finance actually be used for?
The discounted finance covers a solid range of assets: rooftop solar, battery storage, electric vehicles, energy-efficient equipment and recycling technology.
How much cheaper does this actually make finance?
ANZ and the CEFC each chip in 0.4 per cent per annum, adding up to a 0.8 per cent per annum discount on your eligible asset finance loan. It’s not a grant or a rebate. It’s a genuine reduction in what you’re paying to borrow, and it applies for the life of the loan.
Has this program been running for a while, or is it brand new?
It’s been around since 2017. In that time, it’s backed more than 1,600 Australian businesses with over $444 million in discounted asset finance, including more than $90 million in the last financial year alone. The fresh $150 million is an expansion of something that’s already proven itself, not a new pilot.
Is there a real-world example of how businesses have used it?
Rhett Davis, General Manager at Lago Smallgoods (a Victorian manufacturer and distributor of processed meats), used the program and had some solid results to show for it. His business entered new markets, increased production capacity by around 30 per cent and cut costs by roughly 20 per cent. Real numbers, real outcomes.
Why is the government pushing both a loan program and a finance-discount program at the same time?
They’re solving different problems. The Distribution Connected Accelerator Program suits larger, standalone renewable energy projects up to 5MW. Think developers, councils, or bigger commercial sites building a dedicated system. The ANZ/CEFC finance discount is for everyday SME capital spending: a rooftop solar system, a battery, an EV. Minister Bowen’s common thread across both is straightforward: get the upfront cost barrier out of the way so businesses can invest sooner and start saving sooner.
Do these two programs stack with the SRES rebate expansion?
They’re separate mechanisms, but they’re not mutually exclusive. The SRES rebate (the Small-scale Renewable Energy Scheme, recently expanded from a 100kW cap to 1MW) lowers the upfront cost of an eligible solar system through tradeable certificates. The ANZ/CEFC discount reduces what you’re paying to borrow the rest. In principle, a business could benefit from both running at the same time. You’d need to confirm eligibility, loan terms and lender assessment directly with ANZ or another participating financier, but the option is there.
Who should businesses talk to about accessing either program?
For the Distribution Connected Accelerator Program, the Clean Energy Finance Corporation handles the funding. If your project is getting close to construction-ready, reach out to the CEFC directly or check their website for application details. For the discounted equipment finance, have a conversation with ANZ about the Energy Efficient Asset Finance Program specifically, or check whether your current bank is running a comparable CEFC-backed program.
