Subsidies for many new solar farms are to end under plans being published by the government.
The Department of Energy and Climate Change (DECC) is consulting on plans that would see subsidies for some new solar farms close by 2016.
The government says the move is necessary to protect consumers.
The solar industry said subsidies were one of the cheapest ways that the government could meet its climate change targets.
Under the government’s plans, so called “small scale” solar farms will no longer qualify for support under a key subsidy mechanism – the renewables obligation – from April next year.
Small scale solar farms, which are regarded as the cornerstone of the industry, can be up to 25 acres in size and typically power around 1,500 homes.
Supporters argue that the growth of these projects has helped to drive down the cost of solar in recent years.
But the government says the amount of support for renewable energy – which is paid by households through their energy bills – is set to rise in the coming years above agreed levels.
Subsidies for large scale solar farms were cut in January.
The Solar Trade Association (STA) says the industry accounts for just 6% of funds paid out under the renewables obligation.
It insists that support for solar is one of the cheapest ways that the government can meet its climate change targets.
Read more at Small scale solar energy subsidies set to end