The Opposition has called for an official inquiry regarding the administration's dumped Green Loans plan, which was intended to make Australian homes more energy efficient.

The Federal government has announced that the Green Loans scheme is going to be replaced, in answer to the three highly unfavorable reviews of the home energy efficiency plan.

It is also looking into the corruption allegations involving the Environment Department's staff working on the Green Loans program.

Greg Hunt, environment spokesman for the Opposition, says PM Julia Gillard should answer for the program's failure.

"There must be an apology by Julia Gillard to taxpayers and to assessors and to homeowners for a program which ran off the rails," he remarked.

"This was pink batts, fortunately, without the tragic consequences."

Mr. Hunt also said that Peter Garrett, the former Minister for Climate Change, should be given the boot.

"Not just the home insulation program, not just the solar program but now the Green Loans program has been systemically ported," he asserted.

"They've lacked control, they've had poor management, faulty design, significant overpayment and this is the same scheme."

However, Penny Wong, the present Minister for Climate Change, asserts that the Energy Department is already making investigations on the contentions.

"Peter Garrett did what he should have done, which was to act on concerns," Ms. Wong said.