San Francisco Mayor Gavin Newsom said Tuesday that he has withdrawn a measure scheduled for the June ballot that, if it had passed, would have offered rebates for city business owners and residents who install solar panels.

Newsom said the San Francisco Public Utilities Commission instead will fund the $3 million worth of rebates in 2008.

In recent weeks, the Board of Supervisors and Newsom have clashed over the solar panel ballot measure, which, if approved by voters, would have allowed the PUC to fund the rebate program continuously in future years without having to obtain budgetary approval on an annual basis.

Newsom said he still may decide to ask voters to weigh in on the issue in the future.

The average cost of installing solar panels on a San Francisco home is about $20,000, city officials said. Under the city's rebate program, residents are eligible for up to $6,000 and businesses can receive up to $10,000.