There are claims today that a new federal budget decision could cripple the solar energy industry in Australia.

The Government is introducing a means test for the 8,000 dollar solar power rebate, which was originally designed to promote solar power for use in private homes.

Households with a total income of more than one hundred thousand dollars will no longer be eligible for the rebate.

Maurice Wells from the Sydney Energy Cooperative has joined with several major environment groups in condemning the move.

He says over 80% of the solar systems his co-op recently installed would not have been eligible for the rebate under the new threshold.

He spoke with 2ser's Jessica Minshall.