The decision by the independent pricing regulator to slash payments for households exporting surplus solar power from their rooftop panels will "sabotage" the industry, critics warn.

The Independent Pricing and Regulatory Tribunal (IPART) released its final report on solar feed-in tariffs on Tuesday, recommending the voluntary payments be cut from 11¢-15¢ per kilowatt-hour by about half from the start of this month to 6.9¢-8.4¢.

Less for more: Solar installations are running at record levels but feed-in tariffs are to be cut in NSW. Credit:Justin McManus

"Our view is that households without solar panels should not have to pay higher retail prices to reduce the bills of customers with solar panels," IPART said in justifying its cut. "This would

disadvantage the households who are unable to install a solar system themselves."

It noted a household with a 2-kilowatt photovoltaic system was already paying about $1550 a year for power, $550 less than those without panels.