The subsidy provides $2225 for new solar energy systems.

Solar panel companies are preparing to rally in the city again this week to protest against the scheme they say has slowed down installations and hurt their businesses.

Victorians who had been planning to install solar panels are now unwilling to do so unless the state government helps foot the bill.

The rebate scheme was paused in April this year but then resumed with a cap of about 3300 eligible homeowners each month.

Solar installers rallied on the steps of the Victorian Parliament last month with many claiming they have had to let staff go as installations slowed down dramatically.

The Smart Energy Council, which represents solar installers, wants the state government to scrap “red tape” and simplify the approval process.

It has also called for the number of rebates to be doubled.

The council’s chief executive John Grimes said changes to the rebate system needed to be made immediately because it had already caused “devastation across the industry”.

“Our sense is that changes need to happen within days, not weeks or months. We just don’t know how much longer solar businesses can hold out.”

Opposition energy spokesman Ryan Smith said Mr Andrews needed to “back up his words with action” to get the industry back on its feet. He said the government should have consulted more closely with solar business operators to prevent the problems it has now encountered.

“These issues should have been foreseen,” he said.