About 50 had applied under the Melton Solar Suburbs Scheme and a further 120 had shown interest in taking up the bulk-buy offer through the council and its preferred supplier, Clear Solar.

A one-kilowatt system typically costs about $13,000, but that figure could be as low as $1200 with the $8000 rebate and supplier discounts to eligible households.

The rebate scheme was due to end on June 30.

It will now be replaced with solar credits worth between $4000 and $7000, depending on the size of the system installed.

Melton resident David Suttie had paid Clear Solar $2400 in up-front costs and filled out the paperwork by May 23.

But last week he was anxiously waiting to hear if Clear Solar had lodged the application on time.

He said Clear Solar told him there had been a backlog of paperwork as people rushed to file applications following the scheme's sudden end.

"If there is a price difference, Clear Solar should be coughing up the difference," said Mr Suttie, adding that the Federal Government should have honoured the June 30 deadline.

Clear Solar's Melton solar suburbs co-ordinator Matthew Jones said 150 people had put in a massive day at the office last week to have 2500 applications in the post before midnight on June 9.

Mr Jones assured customers that applications received by that date would be honoured. For the hundreds who missed out, Clear Solar was putting together a panel package that would offer similar discounts.

Mr Jones said the sudden end showed the Government's commitment to the solar industry was "cosmetic".

Melton Sustainable Living Group president Gavin Webber said replacing the scheme with one that had less incentives sent a negative message to households and the solar industry.

In a statement, Environment Minister Peter Garrett said the cost of the solar rebate - more than $700million - was four times its original commitment.

The council said that all applications for the Melton Solar Suburbs Scheme, submitted on or before last Tuesday's cut-off, had been forwarded to the Federal Government for assessment.

Melton Mayor Renata Cugliari expressed disappointment that the scheme had been discontinued.