Households face cuts in “feed-in tariffs” for new solar panels on roofs under government plans to prevent subsidies for renewable energy spiralling out of control.
More than 250 proposed solar farms are also likely to be abandoned after the early closure of a subsidy scheme.
Coal-fired power stations, such as Drax in North Yorkshire, also face a reduction in the subsidy available to convert more of their boilers to burning wood pellets from North America.
Amber Rudd, the energy secretary, said the renewable energy industry could not be given a blank cheque and the level of subsidies should be reduced because of a fall in the cost of solar panels.
She began a consultation proposing the closure next April of the renewables obligation (RO) scheme for new solar farms that cover up to 25 acres and generate less than five megawatts.
The government previously announced reductions in subsidies for solar farms above 25 acres and onshore wind farms.
Ms Rudd said: “We can’t have a situation where industry has a blank cheque paid for by people’s bills. I’m going to ensure that bills are kept down.”