As much as 110,000 participants within the state government’s solar bonus scheme will have the rate they may be paid for generating electrical power slashed from 60¢ a kilowatt hour to 40¢ from July, a move that will save the NSW budget an estimated $470 million.

But the state’s solar industry says it’s going to be destroyed by the change, saying it’ll now be not possible to sell up to $200 million worth of solar panels previously bought by solar installers.

About 40,000 electricity clients who had applied to join the scheme prior to it was suspended to new entrants for two months on April 28 is going to be allowed to do so at a 20¢ rate.

The Energy Minister, Chris Hartcher, announced the selection yesterday and said the scheme would not be reopened to new buyers. The government would introduce legislation to retrospectively enforce the new rates.

”It’s nonetheless going to cost the taxpayer, it is nevertheless going to cost the folks of NSW, but we have now a finalisation that is certainly within the interests of everybody,” he stated.Underneath the scheme, electricity clients with solar panels are paid by power firms for energy generated back into the grid. The businesses pass on the expense to their electrical energy clients by way of their electrical energy rates.

The scheme proved so common that the former premier Kristina Keneally was forced to cut the rate for new entrants from 60¢ to 20¢ a kilowatt final year and divert money from the climate adjust fund to cover a looming cost blowout.