Friends of the Earth has warned that it may start legal action against the government by the end of this week unless plans are scrapped to cut the level of subsidies paid to homeowners installing solar panels.

In its formal consultation on the future feed-in tariff, the government said it would halve the level of payments for any installations completed after 12 December this year. The environmental charity says this cut-off point – two weeks before consultation ends – is unlawful and will lead to unfinished or planned projects being abandoned.

"The government is breaking the law with its plans to fast-track a solar industry kill-off – as well as jeopardising thousands of jobs and countless clean energy projects across the country," said Craig Bennett, policy and campaigns director at FoE.