Renewable energy's share of how much electricity is produced in Australia fell in 2014, but the number of businesses connecting to solar power is booming, according to the peak body for the clean energy industry.

The fall in the share of renewables was the first since 2008.

A day after the House of Representatives passed a bill that will reduce Australia's renewable energy target, the Clean Energy Council has published its annual report, which shows the amount of renewable energy being produced from wind and solar in Australia is increasing.

The report shows the percentage of Australia's electricity that was generated by renewables fell overall from 14.76 per cent in 2013 to 13.47 per cent but was still enough to power 4.5 million homes.

The drop, the council says, was not the result of policy uncertainty over the target.

Instead, a combination of poor rainfall and the Abbott government's repeal of the carbon tax, led to an almost 25 per cent decline in hydro power.

"When the carbon price started in 2013, one of Australia's largest hydro power plants at the Gordon Dam in Tasmania had lots of water built up and was ready to take advantage of what was a very big opportunity," chief executive Kane Thornton said.

"That opportunity turned into a record year for clean energy in 2013.

"In 2014 the combination of poor rainfall in hydro catchments and the removal of the carbon price meant it was a much quieter year than the one before, even with more than 230,000 new solar power and solar hot water systems and a handful of new wind farms."

The report shows the share of electricity produced by wind power increased by 6 per cent and solar, while accounting for just a fraction of the total electricity from renewables, increased by 29 per cent.

With smaller rebates than in years past, 8.5 per cent fewer households installed rooftop solar than in 2013, but the industry continued steadily and 1.4 million Australian homes now have solar power systems.

But the report says it is the increasing number of businesses switching to solar that has "been one of the shining lights of the market over the last 12 months."

After 15 months of political deadlock over renewable energy policy, the council said 2014 had been a "subdued" period for the sector, with one thousand jobs being shed.

The government and Labor reached a deal last month to reduce Australia's target from 41,000 gigawatt hours of annual renewable energy production by 2020 to 33,000.

A bill passed the House of Representatives on Tuesday and is expected to go to the Senate when it next sits in June.