Households that want to invest in solar power are at risk of being ripped off following the release of a draft report by the NSW Government, according to the renewable energy industry's peak body.

The Clean Energy Council, which represents over 350 major players in the solar industry, said the recommendations in the IPART report would discourage people from purchasing solar panels and put thousands of jobs at risk in NSW.

Clean Energy Council Director of Strategy Kane Thornton said the NSW government should move to ensure that fairness for solar households is not optional and mandate a minimum price for the solar electricity they produce.

"This would be equitable for solar households and result in no additional cost to taxpayers or electricity users. IPART has greatly under-valued the full range of benefits that solar power provides to Australia's electricity systems and electricity consumers," said Mr Thornton.

"Solar power can play a pivotal role in reducing our dependence on coal and gas generation, both of which will only increase in price in years to come.

"Electricity prices will continue to rise over the next decade due to the spiralling cost of replacing ageing poles and wires. It is important that we give people the option of installing solar power to protect themselves and their families," he said.

The draft IPART report recommends the 'fair value' for solar power exported to the electricity grid is between 8-10 cents per kilowatt hour (kWh). The Clean Energy Council believes IPART did not take into account several key factors and have seriously under-valued the benefits of solar power.

Independent analysis by SKM MMA found that the fair value of electricity from solar customers is at least 12-16 cents per kWh. The cost that most people pay for normal electricity is around 24 cents per kWh.

Mr Thornton said solar power included benefits for the whole electricity network. If these were properly considered it would have led IPART to recommend a higher figure for 'fair value'.

"At the very least, the government needs to give people an assurance that they will introduce a guaranteed rate of return and that customers who sign up tomorrow will be able to access this rate when it is legislated. Without this, there is the danger that consumers will not even receive the supposedly 'fair rate' for their power identified by IPART," he said.

"The danger is that consumers will walk away, putting the jobs of thousands of hard-working Australians at risk. Though the previous government's Solar Bonus Scheme was too generous, the response to that should not be to rip off solar households," he said.

Additional benefits of solar to the electricity grid include:

+ Reducing demand for wholesale electricity (less coal fired power) and for peak electricity (less gas fired power)

+ Producing energy where is it used, meaning less power is wasted in the transmission of electricity; and greater energy security for areas where there are network capacity constraints.

+ Avoiding some fees and charges being paid in the energy market

+ Helping to make consumers more energy efficient

+ Helping to reduce wholesale power prices to all consumers