A virtual power plant is to be created with the connection of more than 3000 existing home solar and battery systems to the national grid.
The project was formally announced today by Climate Change Minister James Shaw at solarcity's Gig for Good event in Auckland.
Solarcity founder and chief executive Andrew Booth, whose company is behind the project, said in a media release that the move would create a generation and storage network that would help provide energy to the power grid when it's unable to cope with demand, or there's a fault.
The virtual power plant would be the world's largest, Booth said.
"Australia says it plans to build the world's largest virtual power station but we're actually doing it with our existing systems and we're adding more every day.