Budget investment in consumer energy resources can unlock more ambitious visions for the sector

13 MAY 2026

The Federal Government’s budget commitment to a new Consumer Energy Resources (CER) National Technical Regulator is a welcome announcement that can unlock more ambitious visions for the future of Australia’s grid, says the RACE for 2030 cooperative research centre.

The 2026–27 Federal Budget allocates $25.3 million over four years to establish the national regulator, as part of a broader $97.3 million reform package aimed at enabling greater participation of households in the electricity market. The Government estimates that better coordination of rooftop solar, batteries and future vehicle‑to‑grid resources could reduce electricity system costs by more than $7 billion by 2050.

RACE for 2030 CEO Dr Bill Lilley said the the announcement reflects the scale of change already underway in Australia’s energy system.

“This is a major and welcome recognition of the role households are now playing in shaping the grid, and the increasing complexity of coordinating them,” Dr Lilley said.

“We now have more than 4.3 million rooftop solar systems across the country, hundreds of thousands of home batteries, and growing uptake of electric vehicles. These technologies are becoming central to how the system operates.”

The new regulator will be responsible for setting technical standards to support the integration of consumer energy resources into the National Electricity Market, helping ensure these technologies can connect, interact and operate reliably across the system.

Dr Lilley said clearer and more coordinated standards will be critical to unlocking the next generation of consumer energy services.

“This creates the foundation for much more seamless, practical outcomes for households,” Dr Lilley said.

“Whether it’s integrating solar and batteries, managing energy use through home systems, or charging and optimising electric vehicles, people need technologies that work together simply and reliably.”

Dr Lilley said the announcement highlights the need to move beyond individual reforms toward a more coordinated, whole‑of‑system approach.

“What this reinforces is that the real challenge now lies in how these technologies come together and function as part of the system,”  Dr Lilley said.

“We are seeing policy, market design, network planning and consumer behaviour all evolving at once. Without a shared direction, there is a real risk that these efforts move out of step.”

Dr Lilley said this challenge sits at the core of RACE for 2030’s Consumer Grid Summit project, which begins today with a with a series of Grid Transformation Masterclasses, bringing together current and emerging leaders from across industry, government, research and consumer advocacy.

“There is no single institution that can solve these challenges alone,” Dr Lilley said.

“What’s needed is a shared view of what the future grid needs to deliver for consumers in terms of reliability, affordability and access, and how we get there in a coordinated way.”

The Government’s reforms build on broader efforts to update National Electricity Market settings, including enabling smaller‑scale resources such as rooftop solar and household batteries to participate more fully in wholesale markets.

Dr Lilley said ensuring those reforms translate into real outcomes will depend on alignment across the sector.

“The system is becoming more distributed, more digital and more consumer‑driven.”

“That creates enormous opportunity, but it also requires decisions across the sector to line up from regulation and markets through to technology and customer experience.”

“Reforms like this are an important step forward. The task now is to ensure they form part of a coherent pathway.”

For media inquiries or interviews please contact Raj Wakeling on 0420 414 724 and raj@theshapeagency.com.au

Visit the website for information on the Consumer Grid Summit Program.

About RACE for 2030:

Reliable, Affordable, Clean Energy (RACE) for 2030 is an industry-led cooperative research program established to drive energy innovation across the supply chain to deliver improved, lower cost and lower emission energy services for energy customers.  

RACE for 2030 brings collaborative innovation across the energy value chain, from energy users to suppliers of energy, technology providers and start-up companies, governments, and Australia’s leading energy researchers.