The energy regulator is warning the ageing electricity grid is at risk of being overwhelmed by solar panels unless urgent action is taken.

The Australian Energy Market Commission says the government and companies need to take action to avoid high power prices as a result of the influx of renewables.

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

Grattan Institute’s Energy Program Director Tony Wood tells Deborah Knight there are measures being done to address this but it’s not enough.

“We are running to catch up.

“The system is indeed starting to deal with this huge influx of electricity.”

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