By Marion Rae in Canberra

NEW modelling has provided a glimpse of a future where every possible rooftop is fitted with solar and trading electricity can boost family budgets.

For the first time, a study has looked at what will happen when Australia reaches saturation levels of what are known as distributed energy resources – if red tape is slashed.

Energy companies and regulators are urged in the report to ensure consumers are fairly compensated for the services their behind-the-meter devices – electric cars, batteries, rooftop solar or pool heating – can provide to the electricity grid.

The report also calls for network service providers to match the location of renewable energy and charging stations for electric cars or risk the lack of standards or co-ordination ending up increasing overall costs for drivers.

Report author Gabrielle Kuiper said regulators also need to make electricity trading easier, so households and businesses can sell excess daytime generation into peak evening demand.

The 4pm-8pm peak is the time where big electricity generators have traditionally earned the bulk of their revenue, Dr Kuiper explained.

“If this peak no longer exists, there will likely be significant impacts on the spot market,” she said.

“The logical consequences should be significant downward pressure on wholesale spot prices, which benefits all consumers.”

The modelling released by the independent Institute for Energy Economics and Financial Analysis said consumers should also be encouraged to switch from gas to smart electric hot water systems that can shift water heating to the middle of the day.

Network distribution costs were found to be the largest component of consumer electricity bills.

“We know eventually every rooftop in the national electricity market that can have solar, will,” Dr Kuiper said.

“Households will also be all-electric with flexible demand in the forms of controlled loads, like hot water and electric vehicles, able to be time-shifted to match solar availability,” she said.

Dr Kuiper is a director at the newly established Superpower Institute and a former strategic adviser to the Energy Security Board.