AAP

A radical $7 million graphite solar energy program that would have seen a northwest Queensland town totally powered by solar energy has been scrapped.

In what was heralded by the state government as a Queensland first, the project aimed to have eight thousand mirrors reflecting sunlight onto graphite blocks in Cloncurry by 2010/11.

However Natural Resources, Mines and Energy Minister Stephen Robertson said the company running the trial had identified significant reflective glare issues while developing its sister solar thermal project in NSW.

"Lloyd Energy Systems advised the government its planned Cloncurry project should not proceed further at the current location given concerns about operating in an urban environment and potential impacts on community health," he said.

Instead, the Bligh Government will now invest the remaining $5.7 million from the project towards generating green solar-powered electricity for Cloncurry in Queensland's second solar farm.

"The Cloncurry Solar Farm will help us examine the potential to develop other solar farms around Queensland particularly where network connections are unavailable," Mr Robertson said.

However opposition energy spokesman Jeff Seeney reminded Premier Anna Bligh how she had initially spruiked the Cloncurry solar/thermal plant "as a real breakthrough for electricity generation".

"Promise after promise... it should have been up and running last year but it's now been dumped by Minister Robertson with the limp excuse it would have been glary," Mr Seeney said.

"Here's hoping glare won't be an issue with (the solar farm) if and when anything ever happens."

"The Bligh government's solar energy policies are all about generating election campaign headlines not about generating electricity," Mr Seeney said.