Solar energy companies have hit out at a government move to slash subsidies, saying it could spell disaster for the industry.
Good Energy (LON:GOOD) and the Solar Trade Association (STA) say the decision to change the renewables obligation (RO) and feed-in tariffs may damage investor confidence.
They also say it could force schools, householders and businesses to abandon solar and return to traditional energy utilities.
The Department of Energy & Climate Change (DECC) plans to end the RO for rooftop and solar farm projects of up to five megawatts early, from April next year.
It plans to reduce support for projects in development and to stop guaranteeing a certain level of subsidy for the lifetime of a solar farm once built.
Ministers also plan to remove ‘pre-accreditation’ to fixed-level feed-in tariffs. The industry says this may mean complex community and commercial projects that take longer to complete would face constantly reducing tariffs between the start and finish of the project.
Energy & Climate Change Secretary Amber Rudd said: "My priorities are clear. We need to keep bills as low as possible for hardworking families and businesses while reducing our emissions in the most cost-effective way."
Solar power revolution
But the industry says solar energy makes up a very small part of RO funding and reduces wholesale prices by displacing high-cost, gas-fired power generation.
Good Energy owns six UK solar farms and supports more than 90,000 householders who generate solar energy.
Chief executive Juliet Davenport said: "Ending support for solar power makes no sense at all. On one hand the government says it wants to keep household energy bills down by removing support for clean solar power, yet on the other promises massive subsidies to nuclear.
"We’re also worried about the knock-on effect this could have on innovation in the battery storage market, which is led by solar.
"Stifling support could bring an end to a truly game-changing technology which would enable households to store their own electricity.”
STA spokeswoman Leonie Greene said: "This is damaging for big solar rooftops as well as solar farms, both very cost-effective ways of generating solar power. This contrasts with repeated commitments from Government to boost the commercial solar rooftop market.
"We're hearing a lot of big figures from Government, but they should know it is just a few quid more on energy bills to deliver nothing less than a solar power revolution in the UK. We think the British public would support that. We're very close, but we're not there yet.
"Support for solar under the RO costs just £3 per year on each household bill, and solar on makes up only 6% of the RO budget."