About 1.8 million Australians with rooftop solar could lower their bills and take control of their electricity supply by storing their own energy, but many fear a repeat of the failed home insulation scheme, a report has found.

The research, co-funded by the office of Chief Scientist Alan Finkel, found Australia could be a world leader in developing and exporting energy storage. However, this was being held back by a lack of effective planning, investment and incentives – partly driven by poor public knowledge of the technologies.

The report, produced by the Australian Council of Learned Academics, warned that unless storage played a greater role in the energy system, electricity costs would continue to rise and supply would become less reliable, which could severely hurt the Australian economy.

The research explored the potential of energy storage, such as home and large-scale batteries, pumped hydro and lesser-known technologies such as molten salt, compressed air and renewable hydrogen.