The scheme, in which households who install panels can earn average electricity credits of about $1500 a year, was running well ahead of expectations, the Energy Minister, John Robertson, said.

A comprehensive review of the scheme will not be held until July.

''Feedback I'm receiving from industry shows households are eagerly taking up this opportunity,'' Mr Robertson said. Energy Australia was receiving up to 150 applications a week under the scheme, he said.

Industry reports say the number of accredited installers across NSW has risen 77 per cent over the past 12 months. A Sydney solar panel factory will soon start operating again.

The scheme, introduced this year, aims to triple the existing capacity of small-scale solar photovoltaic roof panels, bringing the state's total production to 50 megawatts.

Though this energy output meets only a small proportion of the state's total needs, it equates to about 33,000 customers - more than in any other state or territory. The scheme was a pet project of the former premier Nathan Rees, who intervened to ensure that householders enjoyed the benefits of the gross feed-in-tariff payment system.

This means participants are paid for all the electricity they generate, rather than for the excess they do not use.

Households with solar panels are paid 60 cents per kilowatt hour. The average installation should pay for itself in eight years.