LIKELY cuts to feed-in tariffs of around 50 per cent could "kill interest in solar PV", limiting the market to small numbers of installations by green households and businesses, according to CLA West Midlands.

The rural business watchdog says if reports that the Government plans to cut the level of feed-in tariff support for small-scale solar installations from 43p per kWh to around 20p per kWh prove correct, the sector's recent growth will seize up.

"This will stamp out interest in solar PV for affordable rural housing and other schemes," said CLA West Midlands director, Caroline Bedell, "It trims down the rate of returns to under five per cent and no investor will be interested in that."

Mrs Bedell, who works at the CLA’s regional headquarters at Woodseaves near Stafford, added, however, some initiatives would continue to go ahead, principally from businesses keen to reduce their carbon emissions and improve their green credentials, but she cautioned that the market would no longer be led by investors.

Climate change minister Greg Barker addressed a solar industry conference in Birmingham, insisting he was "personally committed" to driving the success of the solar industry, although the CLA said he failed to provide further detail on the looming cuts to the level of support.

He did assert, however, that the feed-in tariff scheme was "unsustainable" in its present form, given that the cost of solar panels had fallen 70 per cent since 2009.

He also called for industry and Government to work in partnership to bring valuable reforms to the scheme.