A "traffic controller" program on the NSW electricity grid to control energy sent to the system from household rooftop solar or batteries is among projects receiving a $9.6 million grant.

It is one of several renewable energy projects to receive cash awarded by the federal government’s Australian Renewable Energy Agency.

The funding goes to projects that integrate distributed energy resources such as rooftop solar, home batteries and inverters into the existing energy system.

“It is projected up to half of all electricity could be generated by consumers within the next few decades, up from around four per cent today,” ARENA chief executive Darren Miller said.

“This is a huge change and will require innovations in software, hardware and thinking to achieve the best outcome for consumers.”

Up to $7.21 million will go to five pilot projects to trial approaches to increase “network hosting capacity” while maximising the ability of solar to provide energy to the grid.

Another $2.38 million has been allocated to seven studies to investigate how to integrate high amounts of distributed energy resources into the grid and energy market.

“We are looking at how we can make the most of of the growth in distributed energy resources as consumer choice expands and changes the way we generate and use energy,” Mr Miller said.