Australia’s ageing electricity grid risks being overwhelmed by solar panels unless the government and companies take urgent action to avoid higher power prices for consumers.

The warning from the Australian Energy Market Commission follows a rapid uptake of household solar – it says the grid has reached a ‘‘tipping point’’ and will be unable to cope with the forecast penetration of renewables.

Australia has the highest uptake of solar of any country in the world. Credit:Justin McManus

The 20th century grid that connects the east-coast network was designed to handle large volumes of power from two dozen coal-fired power stations, but has struggled to maintain reliability when handling inputs from millions of different sources.

Australia has the highest uptake of solar of any country in the world, with about 2.15 million rooftop systems installed nationwide.