A support withdrawal from NSW Premier Barry O'Farrell is expected from the minor party MPS upon his proposal cut down solar panels incentive scheme that upsurged in cost from $355 million to $1.9 billion.

Discussions with the upper house MPs from the Christian Democrats and Shooters and Fishers parties did not show any improvement last night.

It was announced that the 110,000 households involved in the scheme would be reduced from 60 cents per kilowatt hour to 40 cents. Even though a compromise is unlikely to involve a pull out on tariff reduction, the scheme was likely to be extended even beyond 2016.

After the Barnett government decreased by half the money it pays householders under a similar solar power scheme, which is from 40 cents per kilowatt hour to 20 cents per hour, negotiations in NSW had been ongoing left and right.

According to Energy Minister Peter Collier, after an installed solar energy systems has reached the 150 megawatts, it is the only then that the scheme would be stopped.

As details of its proposed audit of the solar panel safety were released, the government will begin with 500 inspections in areas of Sydney where there has been strong acceptance of the panels.

This after reports said that almost a third of the units installed in Port Macquarie on the NSW north coast had “potentially life-threatening problems”.

Consequently, it was discovered that solar panels can set houses on fire. A Port Macquarie retiree, Keith Edwards, 79, has discovered this himself as they were informed by the NSW Department of Fair Trading to have "seriously defective" solar panels.

With this thought in mind, he is concerned about his wife who is no longer capable of moving around the house. "It would have been very hard for her to get out of the house if there was a fire," said Edwards.