Australia's Energy Market Commission estimates that half of all energy users will be using home energy options like solar and batteries within 10 years.
The commission has released a draft plan on how small-scale technologies can be integrated into the grid without creating so-called energy 'traffic jams'.
"We can decarbonise the electricity sector faster and cheaper if we connect more small solar customers and make it worthwhile for them to install batteries. But to do that we need to make some changes to the power system," AEMC chief executive Benn Barr said.
The draft determination, released on Thursday, addresses the problem of 'traffic jams' on the network, which are occurring now and will get worse as more solar connects because the grid infrastructure was built when power only flowed one way.
Blocking power exports because the grid is under strain will ultimately cost more because less renewable energy will be able to enter the system.
The commission's reform package includes:
Changing distribution networks' existing incentives to provide services that help people send power back into the grid.
Letting networks offer two-way pricing to better manage the poles and wires. Giving networks pricing options like rewarding solar and battery owners for sending power to the grid when its needed and charging for sending power when it's too busy.
Flexible pricing solutions to allow each network to design a menu of price options to suit their capability and customer preferences.
Customers could choose things like free export up to a limitor paid premium services that guarantee export during busy times. Networks mightoffer grandfathering for existing solar owners or choose community batteries.
Extra safeguards proposed for the energy rules will ensure existing and new solar customers - and non-solar customers - are protected.
The proposal does not mandate default charges for exporting power. If a network business wanted to introduce export charging, they would need to consult extensively with customers and have a transition plan detailing how this would be done approved by the Australian Energy Regulator.
"This is about creating tailored options, not blanket solutions," Mr Barr said.
"We want to open the solar gateway so more Australians can join the 2.6 million small solar owners who have already led the way. But it's important to do this fairly. We want to avoid a first-come, best dressed system because that limits the capacity for more solar into the grid.
"One option to deal with more solar traffic - building more poles and wires - is very expensive and ends up on all our energy bills whether we have solar or not. While the sun may be free, the poles and wires aren't, so we think the key is to use the power system smarter to avoid costly overinvestment and keep new infrastructure to a minimum.
