Solar scheme axed to meet budget: Greens

The Australian Greens have accused the Gillard government of closing a household solar rebate scheme to help it deliver a surplus in the May budget.

The renewable energy bonus scheme, which provided a $1000 rebate for a solar hot water system and $600 for a heat pump, was closed abruptly late on Tuesday.

While the scheme closes at the end of June, only those who had paid a deposit by Tuesday were now eligible for the rebate.

The industry had hoped the scheme would be extended, after the government allocated $24.5 million towards it in budget forward estimates for 2012/13. Greens Senator Christine Milne accused the government of cutting costs so it could achieve its promised budget surplus.

It was "a ridiculous idea" that in order to meet a political imperative, the government was jeopardising local manufacturers who were building export markets in the new low carbon economy.

Senator Milne said the decision would put enormous pressure on manufacturers such as Rheem, which employed about 1200 people around Australia.

"They are already under pressure because of the high Australian dollar," she told reporters in Canberra.