The only Australian company which manufactures solar cells is closing the operation.

Silex Solar has announced it will stop making the cells at its western Sydney facility, with 30 jobs to be lost.

The company will continue to make solar panels, using imported components.

Silex has blamed a "very tough market" for the decision, but the Australian Manufacturing Workers Union is pointing the finger at the New South Wales Government.

Union state secretary Tim Ayres says the Government's decision to cut the state's Solar Bonus Scheme is a major factor.

"We warned that there would be a possibility of job losses in manufacturing and that is exactly what has happened," Mr Ayres said.

"The decision can be blamed on the roll-back of the Solar Bonus Scheme by the O'Farrell Government, and the Government's failure to implement any sort of framework for the clean technology industry.

"We really need urgent Government action to make sure there is a viable clean technology industry in NSW."

A spokeswoman for NSW Energy Minister Chris Hartcher says the scheme was unaffordable, and Silex has made a commercial decision.

The Minister has suggested the company should approach the Federal Government for help, specifically through its proposed $10-billion clean energy fund.