The Australian Energy Regulator (AER) has made the decision to put Ausgrid’s proposed Community Power Network (CPN) pilot up for public consultation.
The pilot aims to harness the unused rooftop solar potential currently sitting in the existing network—particularly on commercial and industrial buildings—and ensure the resulting benefits go back into the local community.
Ausgrid CEO Marc England said the pilot would test the hypothesis that by unlocking current challenges in the existing market, communities will benefit from cheaper and more equitable electricity.
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“The AER asked for proposals to facilitate access to the benefits of solar and storage and bring down prices, and this is what this pilot aims to deliver,” he said.
“The proposal is forecast to generate $22.9 million in energy cost savings for Ausgrid customers within its pilot area over five years—equating to about $150-$200 per customer per annum for a typical household.
“Importantly, the trial will allow everyone—including renters and those living in apartments—to benefit from solar power, even if they don’t have their own panels or batteries.”
England said the proposal addressed two key issues currently holding back a more equitable transition and cheaper prices.
“If you live in an apartment, or rent, or do not have the money to spend on your own electricity assets, then currently you struggle to access the benefits of solar and storage,” he said.
“Commercial and industrial businesses also struggle to get value from filling their roofs with solar and selling surpluses into the grid because current wholesale prices are driving the price of energy below costs.
“This trial sees the cost savings go back to the local community and encourages private investment in rooftop solar by creating value for locally generated energy.”
The two sites identified for the pilot are Mascot-Botany in Sydney and Charmhaven on the state’s Central Coast.
“As well as electricity supply close to demand being the cheapest outcome for customers, this proposal will help Ausgrid manage peak demand, stabilise the grid and increase network utilisation, reducing the need for expensive future upgrades,” England said.
“These are outcomes that put downward pressure on prices now and avoid future increases across the network. The pilot will create jobs for solar installers, which is positive for licenced electricians and Accredited Service Providers.
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“It will also demonstrate the potential, when urban areas take on some of the heavy lifting currently going on in the outback, that we have to de-risk the need for as much expensive high voltage transmission.”
Ausgrid’s proposal was submitted in May 2025, following the AER’s February request for network-led solutions to facilitate greater access to, and orchestration of, Consumer and Distributed Energy Resources through the AER’s regulatory sandbox process.
The public consultation process is a key part of the AER’s review of the proposal and Ausgrid looks forward to the engagement.
