A group of businesses, including energy company AGL and General Electric, are calling on the federal parliament to save a key renewable energy agency from the chopping block.
An open letter, signed by more than 20 businesses, says cutting funding to the Australian Renewable Energy Agency would be "short-sighted" and lead to profound damage to investor confidence.
The coalition plans to cut $1 billion in funding to ARENA, a move expected to be backed by Labor.
"This would damage Australia's reputation and unsettle investors," the letter says.
"ARENA has played a crucial role in supporting innovation and cost reductions in emerging renewable energy and battery storage technologies."
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The agency provides grants for start-up clean energy projects, with a focus on innovation and emerging technology.
The letter says the investment underpins the next generation of Australian clean energy.
"Every new energy technology ever developed has required government funding," it says.
"That includes coal, gas, hydro and nuclear power."
The clean energy sector is recovering from a tumultuous period after the former Abbott government announced plans to slash the renewable energy target.
An ensuing political stalemate eventually ended in a compromise, but investment in the sector fell by 88 per cent in 2014.
"Investment confidence would be again undermined if one of the first moves of the new parliament is to cut funding to Australia's key clean energy agency," the letter says.
Clean Energy Council chief executive Kane Thornton said ARENA was clearly effective.
"Hundreds of projects have been funded to date and hundreds more are needed if we are to transform Australia's energy system at the lowest possible cost to consumers," he said.
The letter was also signed by Tesla, Vestas, Goldwind, Pacific Hydro and Infigen Energy.
