The news comes a week after Melbourne company Solar Systems announced $32 million in funding for solar cell factories in Victoria.
Environment Minister Malcolm Turnbull officially launched the trial under the Federal Government's $75 million Solar Cities program.
The trials in the local government areas of Adelaide, Salisbury, Tea Tree Gully and Playford will try out new ideas, products and services to support the installation of solar power to the region.
The government is investing $15 million in the Northern Adelaide initiative, with a further $38 million expected to come from industry, including Origin Energy, ANZ Banking, Delfin Lend Lease, Salisbury Local Council, Big Switch Projects and BP Solar
The installation of up to 1,700 solar panels and 7,000 smart meters on homes and commercial buildings is set to double South Australia's solar power capacity, Turnbull said.
Smart meters are intended to reduce energy use during periods of peak demand and drive down the cost of electricity. Energy audits will also be offered to residents and businesses to help them understand how they can cut energy consumption around their homes and offices.
The Adelaide Solar City will potentially save more than 28GWh of electricity, representing $5 million a year in lower electricity costs and greenhouse emission reductions of 30,000 tonnes a year.
A total of five solar city projects will eventually be rolled out, with programs in Townsville, Alice Springs, Blacktown in NSW and central Victoria.
Meanwhile, a $2 billion wind power development has been proposed by Epuron, a subsidiary of German company Conergy, for a site north of Broken Hill in NSW.
Epuron director Martin Poole told ABC Radio this morning the 500-turbine wind farm could meet 4.5% of the electricity needs for NSW, generating power for 400,000 homes. But the project may be delayed because the Federal Government's 15% clean energy target may override a state scheme due to start next year.
Poole said it is difficult at the moment to decide whether companies should be looking to state or federal legislation when proposing renewable energy projects.
