Hundreds of solar companies are likely to go bust by Christmas after the Department for Energy and Climate Change confirmed it is looking to halve subsidies for new panels.
The proposed cuts, due to come into force from December, will see the amount earned from each panel fall from 43.3p per kilowatt hour of solar power to 21p. This will save energy customers around £23 a year because the subsidies are funded through electricity bills.
Gaynor Hartnell, chief executive of the Renewable Energy Association, said: "The installation rate is likely to fall drastically, and many of the 25,000 newly-employed in this industry may end up joining the dole queue."
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