Energy Minister Angus Taylor has confirmed the Morrison government will not replace the renewable energy target after it peaks in 2020, officially creating a policy vacuum that opponents say will stifle clean energy investment and lead to higher prices.

In question time on Tuesday, Greens MP Adam Bandt challenged Mr Taylor to extend the target until 2022 to avoid a disastrous plunge in renewables investment when the current target ends.

“The renewable energy target is going to wind down from 2020, it reaches its peak in 2020, and we won't be replacing that with anything,” Mr Taylor said.

The target involves the creation of tradeable certificates which encourage electricity from renewable sources. It aims for 23.5 per cent of Australia's energy to be sourced from clean sources such as wind and solar by 2020.