Since the scheme was introduced on March 1 last year, participants have been paid more than 50c a kilowatt hour for electricity generated from photovoltaic modules.

In its draft report issued yesterday, the ACT Independent Competition and Regulatory Commission recommended payments to people who join the solar scheme in 2010-11 be 37c a kilowatt hour. As with the present rate, the proposed rate would apply for 20 years.

The commission's recommendation is not binding on the Energy Minister, Simon Corbell, who indicated yesterday he was not comfortable with the proposed reduction.

''I am concerned that level of reduction could have a significant impact on the uptake of solar energy in the city,'' he said.

He also had to be concerned about the impact of the feed-in tariff scheme on electricity bills. So far this had averaged from 1 to 2 per cent.

''I will have regard to the commission's recommendations. I am the decision-maker under the Act.''

Despite the recommended reduced payment, senior commissioner Paul Baxter said compared to other relatively low-risk investments, this was a very attractive return, especially to households, the main participants in the scheme, for whom the return was tax free. The ACT scheme would remain generous compared to feed-in schemes operated in other Australian jurisdictions.

For more on this story, see today's Canberra Times.