By the end of May, about 50 Melton households had signed up to the scheme.

Melton Council's manager of business growth and sustainability, Brett Luxford, said a further 120 had shown interest in signing up for the Federal Government solar rebate before the offer ended on June 30.

The project is a joint initiative of Melton, Brimbank, Maroondah, Moonee Valley, Knox, Whitehorse, Wyndham, Boroondara and Yarra Ranges councils.

Under the scheme, residents and businesses would be connected to a solar panel provider, who offers the bulk discount price.

Normally, it costs about $13,000 to install a one-kilowatt solar photovoltaic system. Under the bulk-purchase price, the cost of the same system starts at $1200 for eligible residents.

Mr Luxford said the council was not sure how much interest the community would show, but he was pleasantly surprised with numbers.

Melton Sustainable Living Group president Gavin Webber said the response was fantastic.

"Up until a year ago I was the only person in the whole town with solar panels. The number of people using solar power will help reduce carbon emissions."

Due to changes in the Australian Government solar rebate scheme, the bulk purchase program will only be available until mid-June, as rebate applications must be lodged with the Government by the end of the month.