Studies have been undertaken to look at Australia's first community owned electricity retailer.

New South Wales Environment Minister Rob Stokes says the government has funded a feasibility study on the development of a local, community owned energy retailer for the Northern Rivers region.

The idea was prompted at recent regional energy forums, where proponent pointed out that roof-top solar is very strong in the region but the people felt they were being paid poorly for their power when they export it to the grid.

A number of different business models will now be devised that would see all the roof-top solar owners band together to form a company, which could then bid for better prices.

The company would be able to provide 100 per cent renewable energy at a scale comparable to commercial renewable projects.

It is also expected to support the local economy, create jobs and build a cheaper and more sustainable energy system.

The Environment Department has put out the call for tenders and innovative ideas toward the effort.