A Senate committee will begin hearing evidence on Friday on the impact of the Rudd government's decision to limit eligibility for its solar panel rebate.
The government, in the May budget, imposed a means test threshold of $100,000 on each household seeking the $8,000 rebate to offset the cost of installing solar panels.
The decision angered the solar industry, which warned of job losses and company closures, and environmental groups who said it sent the wrong message about the need to reduce carbon emissions.
Coalition legislation, attempting to reverse the decision, has been introduced to both houses of parliament.
The coalition used its numbers to refer the Senate bill to inquiry by an upper house committee.
Liberal senator Simon Birmingham, a member of the standing committee on environment, communication and the arts, says since the means test was imposed most solar companies had reported losing at least two-thirds of their contracts.
"This decision has seen millions of dollars in business lost, with few new customers now signing up for solar panels, resulting in companies cutting staff numbers and ultimately the environment losing out," he said in a statement.
The committee will hear evidence from two NSW solar firms, the Australian Conservation Foundation and the Department of Environment, Water, Heritage and the Arts during a public hearing in Canberra.
