Research suggests jobs in the solar PV industry could be cut in half if the Federal Government reduces its Renewable Energy Target.

The RET has been instrumental in creating a strong solar industry in Australia, with many thousands seeking to reduce their power-bills by generating their own supply.

Recent statistics have shown the solar PV industry is experiencing a drop in demand, but it would turn into a drastic decline if the target was reduced to save money, according to a report from the REC Agents Association.

The REC Agents Association is a group which represents issuers and traders of renewable energy certificates.

Its figures suggest the solar PV industry had employed about 13,600 in late 2013. It found that number will sink to about 12,300 across about 4300 businesses this year, as several state-based solar subsidies are removed. Even worse would come to pass if the government cut support for the industry by scrapping the RET, with findings that the total number of jobs lost could leap to 6750 by 2018, secondary analysis suggests.

The Federal Government is looking to review the Renewable Energy Target of deriving 20 per cent of electricity from renewable sources by 2020.

“Any substantial change to the Renewable Energy Target would obviously have a big impact on the future of the solar industry,” said Kane Thornton, deputy chief executive of the Clean Energy Council.

Mr Thornton said the goal “makes up a very small proportion of power bills while creating thousands of jobs and billions of dollars in investment, much of which flows into regional areas”, he said.

The true source of ever-increasing power bills changes depending on with whom one talks; the Federal Government blames renewable investment while the renewable industry says it has only helped drive them down.

With no policy change, the industry report finds 8000 jobs will be generated between 2014 and 2018, assuming a floating carbon price, electricity prices continue to fall and PV price help keep them down.