A cut in the feed-in tariff (FIT) used to generate cheap electricity from green sources would be an "absolute disaster", the Renewable Energy Association (REA) has warned.
According to the Telegraph, the REA believes that the government's proposed reduction to the FIT for medium and large-scale solar panel installations - which could come in at up to 70 per cent - could set back the sector by a long way.
"No new projects will start if this proposal becomes law. This industry has been strangled at birth. The huge number of envisaged new jobs will disappear," the organisation insisted.
Meanwhile, a number of solar energy companies have filed for a judicial review against energy secretary Chris Huhne following his decision to reassess the FITs.
The Department of Energy and Climate Change said: "We have been served with a judicial review in relation to the feed-in tariff review into large-scale solar, which we will consider. We support sustained growth in the solar industry and have proposed measures for consultation that will protect the FITs scheme for homes, small businesses and communities."
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