Battery storage trials will convert homes in the town to virtual green power stations under the Smart Grid, Smart City program, allowing them to power the streets during a blackout.

EnergyAustralia smart grid manager Adrian Clark said the project worked by storing energy in the batteries and returning it back to the grid when the lights went out.

"The benefit of putting storage and those technologies out on that network is to improve network reliability," he said.

He said Scone was chosen because rural and remote areas were known to have the least reliable energy supplies.

"We want to improve the quality of supply in those areas," Mr Clark said.

"It's too early to comment on how many homes will be converted . . . we will choose houses that are close together on the grid with customers keen to participate."