Scrapping solar bonus 'helps people'

Removing the solar bonus scheme will put "downward pressure" on power bills while making state assets "more attractive" to lease.

Campbell Newman said the former Labor government's solar power bonus scheme was a bigger bungle than the infamous health payroll fiasco.

The Premier announced on Sunday that $3.4 billion from asset leases would be quarantined to reduce average household power bills by $577 over five years.

The deal was dependent on the LNP's re-election in 2015, and would be achieved by restructuring bills so that the government paid the 44 cent per kilowatt hour solar feed-in tariff currently passed on to customers by the energy companies.

Premier Campbell Newman has attacked the former Labor government's solar scheme. Photo: Alex Ellinghausen

No new solar power users are able access the scheme, which expires in 2028.

Treasurer Tim Nicholls said the $3.4 billion was the estimated amount required to see it out.

"This is not a short term sugar hit, this is a structural change to the base of electricity prices in Queensland that will mean we are able to offer cost of living relief and relief to small businesses throughout the state."

Asset leases are expected to earn the state $37 billion. $25 billion will be set aside to pay down debt and $8.6 billion will be invested into job-creating infrastructure, leaving $3.4 billion for power bills.

Mr Newman said this was three times more than the $1.25 billion it would ultimately cost taxpayers to fix the health payroll system, which floundered on implementation in 2010.

"I think the feed-in tariff was a bigger public policy debacle that has cost people," he said.

"If government doesn't spend your money wisely, you actually pay, so debt that's accumulated by the former Labor government really hurts us in our daily lives."

Opposition leader Annastasia Palaszczuk said the 44 cent feed in solar tariff had a purpose.

"Labor was always looking at diversification and encouraging people to have other options, including solar," she said.

"There are a lot of people out there, a lot of mums and dads, a lot of people right across the state that have actually adopted solar panels."

Ms Palaszczuk described the power bills price cut plan as another distraction.

"Campbell Newman, before the last election, promised to lower everyone's electricity bills by $120 a year without selling our assets," she said.

"Now we know this government is determined to sell our assets, which will mean higher electricity prices and job losses."

Mr Newman said it was important to remind Queenslanders that patience was required.

"You can't have 20 years of mismanagement, the accumulation of debt, massive deficits, poor public policy in the electricity sector and just eliminate it straight away," he said.

"The things that we're doing are unravelling these problems that have been built in to the whole system of government in Queensland."