Australia is leading the solar race worldwide thanks to widespread adoption of rooftop panels but the asset could present a serious challenge to the national grid in the short-term, a leading energy regulator has warned.
Australian Energy Market Commissioner Tim Jordan issued the warning at CEDA's Energy Security conference in Brisbane on Monday, while calling for regulation to ensure the clean energy source would remain an asset for consumers.
His comments come amid a growing national debate over Australia's energy future before this year's federal election, and after the Climate Change Authority issued a report backing a transition to renewable energy.
More than four million Australian households currently have rooftop solar panels installed, according to government figures, representing one in three homes.
But the renewable energy source, which produced and supplied power to the grid during daylight hours, was becoming a ballooning challenge for energy operators to manage, Mr Jordan told the conference.
"My worry - and I know it's one you share - is about consumer energy resources," he said.
"At the scale these assets are growing to, they're going to challenge our energy systems and things will probably have to change."
Regulatory changes, including the rollout of smart meters, would be needed to manage the energy influx, he said, and Queensland was well-placed to lead the country given it represented more than one million rooftop solar installations.
If managed correctly and combined with battery storage investment, Mr Jordan said rooftop solar could provide huge benefits to consumers into the future.
"(Consumer energy resources) and (distributed energy resources) will play a critical role in our energy future, helping to reduce overall system costs, improve reliability, and achieve a low-emission secure energy systems for us all," he said.
"If these resources are integrated well, the power system will be efficient and secure, and consumers and industry will enjoy the benefit of lower bills."
Digital meters would also help power providers to identify where solar power had been interrupted, Energy Queensland chief executive Peter Scott said, as it had during several hot summer days during January and February.
"Clear skies, solar ripping along, everyone's got their air-con cranked up quite rightly, then we get a cloud bank that comes through, typically through the Gold Coast or sometimes from the west," he said.
"A few thousand people without power are not really happy."
Household batteries and electric vehicle batteries could help to address the supply issue in future, Mr Scott said, particularly as they became more accessible and cheaper for consumers.
"I am glass half full," he said.
"I think we'll come out of this within a couple of years."
Australia is committed to a climate target of reducing greenhouse gas emissions by 43 per cent in 2030, with 82 per cent renewable energy in the electricity grid.
An analysis from the Climate Change Authority, released on Monday, found the nation could reach the target with greater investments in renewable energy, though nuclear power would not deliver the same cuts until 2042.
