The Victorian government will slash the subsidy paid to households for electricity fed into the grid from rooftop solar panels by more than half, from 60 cents to 25 cents for every kilowatt­‐hour.

The decision announced Thursday is disappointing and puts hundreds of solar jobs in that state at risk, according to the peak body for the clean energy sector.

Clean Energy Council Policy Director Russell Marsh warned the size of the cut could flatten the state’s solar industry.

“There are approximately 3,400 people employed by the Victorian solar industry, and many of these jobs are in regional areas,” Marsh said.

“This cut means many of these jobs are at risk. Our modelling shows that a rate of 35‐40c would have ensured jobs were secure and the industry still had the potential to expand.”

Marsh said Victoria’s Premium Feed­‐in Tariff scheme (PFiT) was an example of a solar support scheme that had been working well.

“Thousands of Victorians have already signed up to the scheme, cutting their power bills by around $500 a year and reducing greenhouse gases for all Victorians. It has all come at a cost to households of less than $1 a month,” he said.

“Government support across the country has helped to deliver cheaper solar through larger and more efficient international manufacturing processes, increased competition and economies of scale.

“This investment has paid off, with data from the Australian Electricity Market Operator yesterday showing that new electricity generation had been delayed in many states, partly as a result of increased solar installation.”

Marsh said that with the cost of solar energy falling it was unlikely that it would need government support by the end of the decade.

“But we are not there yet, and the right support is crucial to ensure the industry remains intact to deliver clean energy, emissions cuts and jobs,” he said.