Government backbencher Sarah Henderson said renewable energy was an important issue in her Victorian electorate of Corangamite, prompting her to call for the decision to be reversed.
"I've written to the Finance Minister Mathias Cormann seeking his consideration that emerging technologies in wind and small-scale solar be included in the Clean Energy Finance Corporation's investment mandate," Ms Henderson told ABC NewsRadio.
"It's very important not to exclude small-scale solar and also wind, because there are new and emerging technologies in these sectors as well," she said.
She said Mr Cormann had been open to her advocacy on the issue but she was just "one cog in the wheel".
Mr Abbott deflected a question about the backbench intervention by focusing on Labor's policy to significantly increase the Renewable Energy Target to 50 per cent by 2030.
"This constitutes a massive hit on consumers and on jobs," Mr Abbott said.
He said the Opposition's policy would allow a "massive overbuild of wind farms".
Opposition Leader Bill Shorten used the ALP conference to challenge the Goverment:
"Mr Abbott's society of flat earthers" and accused the Government of smashing confidence in the renewable energy industry.
A spokeswoman for the CEFC said the corporation would provide a response to the Government's draft directive "in coming weeks".
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