Families who fit solar panels on their roof to heat water will no longer receive subsidies under plans announced by the government.
About 230,000 households in the UK have fitted solar thermal equipment on their homes which directly heats up water for central heating, baths and showers, according to the Solar Trade Association (STA).
However, a decision to axe all future support under the Renewable Heat Incentive will remove government subsidies for thermal schemes from next year. The announcement follows cuts to a string of government green energy subsidies.
In 2014 renewable heat from solar and other sources provided 4.8 per cent of the UK’s heating needs, leaving the UK well short of its target of 12 per cent by 2020.
Amber Rudd, the energy secretary, has publicly recognised the need to accelerate progress on the technology.
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The announcement came hours after MPs on the energy and climate change select committee said that a series of “sudden and unexpected” changes to UK energy policy had spooked investors and risked forcing up consumer bills.
The decision was taken because solar thermal “represents poor value for money for taxpayers” as the technology was already mature and did not require subsidies, a consultation found.
Total UK capacity was 540 megawatts in 2014. In contrast Germany has 13 gigawatts of installed solar thermal capacity, or nearly 20 times more capacity per person. Britain’s solar industry employed 9,500 full-time workers and generated £2.5 billion turnover in 2014, according to the Office for National Statistics.