The program relied on the $1,600 Federal Government Solar Hot Water Initiative to offer installation of a solar hot water system or heat pump for $100 to eligible pensioners and $500 to all other eligible households.

However, the recent decision by the Federal Government to reduce the solar hot water rebate from $1600 to $1000 and further reduce the heat pump rebate from $1000 to $600, meant that the Queensland State budget would have had to cover a $100 million dollar gap to meet the original program target of providing 200,000 homes with affordable solar hot water.

Queenslanders who signed a contract on or before 19 February 2010 (the date changes were announced to the Federal program) and are awaiting installation under the Queensland Solar Hot Water Program will have their system installed.

Others who have lodged an expression of interest since that date will be prioritised when a new scheme is rolled out.

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In a statement following the announcement to cease the program, the Bligh Government reaffirmed its commitment to solar technology and its intention to develop an alternative scheme as soon as possible.