It was the second blow in as many weeks for the fledgling industry, after the Victorian Government chose to increase the rate of feed-in tariffs for solar-generated power in its budget, but will then calculate them on the nett, rather than the gross, amount of power produced.

The local alternative energy industry has described the new cut-off as an opportunity lost for renewable energy in central Victoria.

While ABS statistics show only about eight percent of local households earn more than $100,000 a year, local tradesmen argue this is the very group most likely to take on the capital cost of installing a solar system.

Click Control Systems owner Andrew Morrall believes potential clients will be discouraged from taking up rebate offers, which will undermine the potential for tradespeople to compile bulk orders.

"I think its going to make a dint in the business," Mr Morrall said.

"If a one-kilowatt system costs $14,000 to $15,000, then those on incomes of $100,000-plus often don’t have a problem finding the extra cash with the subsidy.

"But for those on less, even with the rebates, it is often a real ask."

Mr Morrall said the new cut-off would cut a lot of people out of the scheme.

"I mean all it takes is two primary school teachers to make an income of $100,000 and, if you add a mortgage, rising petrol and grocery prices, there is not a lot left over."

North Central Energy Services owner Brian Hayes said he was very disappointed the two budget decisions failed to encourage the enormous community interest in alternative energy opportunities.

"We’ve been kept that busy, it’s seven days a week for us," he said.

Mr Hayes said a lack of communication between governments and power companies meant the huge potential of solar energy in Central Victoria was being undermined.

Mr Hayes said buyers understood the potential of solar systems, particularly with the longevity of warranties of up to 25 years, but initial capital costs were not translating into long-term financial viability through proper tariffs.

Premier John Brumby said last week he would not impose a tariff system that would lead to higher penalties on businesses for normal grid use.

But local business leader and Solar Cities driver Leigh Watkins said putting as little as half a cent extra per kilowatt on traditional black power could be used to set up a fund to pay for a gross input system derived from green energy.

Mr Watkins said Australia’s subsidy-based system was limited by only paying for installation when the real money-making incentive was in power production, as shown by the German model, which bases its system on a gross calculation of the input tariff "It’s not about the capital costs; it’s about giving full recognition of the value of renewable energy at the place of input because that is where it has the maximum efficiency," Mr Watkins said.

He said 13 per cent of power produced in the Latrobe Valley was wasted just getting to Bendigo, while green inputs from central Victoria’s abundant sunshine would go directly into the grid and be used locally.