The concessions Tasmanians receive for having solar panels are being reduced.
Existing solar customers will now have a few more years to reap the rewards before they are cut.
Solar customers receive 27 cents for each kilowatt hour they feed back into the grid.
The government had plans to cut the feed in tariff in three years but after community backlash and pressure from the Greens, existing customers will now keep it until 2019.
New customers will receive a feed in tariff of just eight cents.
Industry representative Mark Van Dongen warns businesses will fold.
"Eight cents is no where near enough to sustain this industry," he said.
The Greens support the changes saying the solar sector has remained strong in other states with a similar tariff.
The eight cent tariff will remain until next year when the Economic Regulator will set the rates.