Report: Better Enabling Community Energy Resources in Electricity Networks

Renew’s Better Enabling Community Energy Resources in Electricity Networks report examines how household-owned energy resources such as rooftop solar, batteries and other distributed technologies can deliver far greater value to consumers and the energy system if they are properly enabled. While these resources already play a growing role in Australia’s energy transition, the report finds that current grid and market arrangements are limiting their potential and, in some cases, creating unnecessary costs and constraints for households.

Using whole-of-system modelling, the report explores an idealised “Consumer High DER” future, where consumer energy resources are integrated in a coordinated and cost-effective way. In this scenario, more than 90% of grid-connected households have solar and batteries by 2050, delivering significant reductions in network investment needs and wholesale electricity prices. The modelling shows this approach could generate around $25 billion in net benefits to consumers over 15 years, and up to $69 billion over 30 years, largely through lower network and energy costs.

Despite these clear benefits, the report identifies major policy, regulatory and market barriers standing in the way. These include electricity tariffs that fail to reflect the true value of consumer energy, the lack of systems to actively coordinate and manage distributed resources, and industry incentives that favour traditional network upgrades over smarter, consumer-led solutions. Together, these barriers risk slowing the transition and reducing benefits for households.

The report calls for coordinated reform to unlock this opportunity, including comprehensive tariff reform, prioritising systems that can orchestrate consumer energy resources, and changes to regulation to better value consumer participation in the energy system. With the right settings, consumer energy resources can support a cleaner, more affordable and more resilient electricity system—one that puts households at the centre of Australia’s energy future.