The Morrison government is tipping $12.9 million into the trial, which will start with 50 houses in the hope it grows to include up to 1000 residential, commercial and industrial electricity customers.

The trial will see a wholesale marketplace set up for households to buy and sell electricity from rooftop solar, batteries, electric vehicles and smart appliances.

Energy Minister Angus Taylor hopes the trial will show how the electricity grid can adjust to more renewable energy sources.

"As more and more people install rooftop solar and smart energy appliances in their homes and businesses, it is important to find the best way of managing the new technologies to ensure the grid and electricity supplies remain reliable," he said on Wednesday.

"This microgrid project gives control back to the consumer."

Mr Taylor has also announced a second round of grant funding to help regional and remote communities have reliable power.

A share of $25 million is on offer when the round opens on December 16.

The program helps fund feasibility studies to see if a microgrid or upgrades to existing systems would better meet electricity supply needs of regional communities.

Australian Associated Press