Labor plans to roll-out a new scheme that will see 50,000 homes paid to have Tesla batteries and solar panels installed.
That will then feed power back into the grid, creating a 250mw virtual power plant.
According to the South Australian government, 25,000 Housing Trust properties will be fitted and the remaining 25,000 will be open to South Aussie households.
In a statement, Premier Jay Weatherill said more renewable energy would mean "cheaper power for all South Australians".
"We will use people’s homes as a way to generate energy for the South Australian grid, with participating households benefiting with significant savings in their energy bills," he said. Listen to the full interview below.
"Our energy plan means that we are leading the world in renewable energy and now we are making it easier for more homes to become self-sufficient."
For those participants, bills could drop by 30 per cent or $80 each year.
So far, more than 6,500 South Australian households have applied.
Today’s announcement is the next phase in the State Government’s Energy Plan, which is already making South Australia more self-sufficient through the world’s largest lithium ion battery and the solar thermal plant.
The Virtual Power Plant will be the biggest of its kind in the world, easily eclipsing Canberra’s Reposit Power Virtual Power Plant, which connects 250 homes and businesses to the grid.