SA hardest hit by renewable energy cuts

South Australia will suffer most from cuts to a renewable energy agency proposed in the federal government's budget savings, the SA government says.

Energy Minister Tom Koutsantonis says the cuts to the Australian Renewable Energy Agency are "dangerous and frankly perplexing" as they will prevent renewable energy innovation.

ARENA has provided $5 million to a help energy giant AGL build a $20 million network of solar batteries in Adelaide from late 2016.