Endeavour Energy is carrying out a pilot study on a device that aims to make that two-way flow more reliable.

Previously electricity ran from the power plant to the home, but now people are installing solar panels and batteries with a view to feeding energy back into the grid.

That's a change that requires an updating of the electricity network, and Endeavour is looking to achieve this with a box-like device called EcoVAR.

Developed by Australian start-up Ecojoule Energy, the device - which will be attached to power poles or in the "green boxes" in the street - stabilises the electricity flow.

Ecojoule Energy CEO Dr Mike Wishart said it will deliver "volume smoothing" across the network.

"This means more dollars in the Aussie back pocket by ensuring solar is operating year-round, maximising return on investment," Dr Wishart said.

Endeavour's general manager of asset management Ty Christopher said the device will allow for a greater flow of energy from homes back into the grid - and also help those without solar panels.

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"It's like a big shock absorber on the network that allows it to stabilise the inputs that are now coming from two different directions and keep the supply stable at the individual street level," Mr Christopher said.

"It therefore means that more solar can connect and, as it connects, it doesn't have a negative impact on any other customers on the network."

The EcoVAR can also provide indirect cost savings to all customers, as the device will avoid the more expensive option of having to install more poles and wires and place more cable in the ground.

Endeavour received its first EcoVAR on Friday and Mr Christopher said it would form part of a pilot study of 20 units around the Illawarra and western Sydney.

Installation will start this month and Mr Christopher said locations included West Dapto and Shellharbour.

He said the pilot study will give Endeavour Energy an idea of how many devices they would need across the network, as it is unlikely they would be installed in every street.

"At the moment it’s really dependent on the rate of take-up of solar and how many customers in a particular street want to start installing solar, as to whether it’s even needed on a street-by-street basis," he said.