Energy Minister Stephen Robertson while the cancellation was "deeply regrettable", the State Government was committed to finding an alternative scheme.

"Unfortunately, following the Federal Government's recent decision to end its solar hot water program, the Queensland Government was left with no alternative but to end our program," Mr Robertson said.

"The decision by the Federal Government to reduce their solar hot water rebate from $1600 to $1000 and further reduce the heat pump rebate from $1000 to $600 would leave a huge funding gap.

"The reduction would mean that the Queensland government would have to find over $100 million to bridge this gap if we were to meet our target of installing 200,000 solar hot water systems during the term of this government.

"We are not walking away from our commitment to support solar technology and will continue to find an alternative to see more Queenslanders access affordable solar hot water."

Mr Robertson said the State Government would ensure that customers who had a signed contract with existing suppliers on or before February 19, would have their contracts honoured.

"And we will continue to send receipts to customers who have had an installation completed under the program, so they can meet the Federal Government's March 19 deadline," he said.

Customers who currently have a paid and signed contract can contact the solar hot water program hotline on 13 25 23 for further information.