The government is planning to reduce the solar subsidies paid to homeowners from 1 April.

The Department of Energy and Climate Change's recommendation means that people that install solar panels and sign up to the feed-in tariff (FiT) scheme on or after 3 March will see their payments halved from 43p per kilowatt-hour to 21p on 1 April.

From 3 March to 31 March they will be paid the 43p FiT rate.

The move comes while the Court of Appeal is still deciding whether the government was lawful to demand the cut in FiTs from December 2011.

Energy and climate change minister Greg Barker says he wants to end the current uncertainty created by the legal challenge.

‘We must reduce the level of FiTs for solar panels as quickly as possible, to protect consumer bills and to avoid bust in the whole FiTs budget,’ he comments.

‘We’re appealing against the court ruling that’s challenged our proposal for a December reference date. This remains our aim, and we are waiting for the judgment of the Court of Appeal. But this is too important for us to sit and do nothing while we wait. Today [19 January] we’re putting in place a contingency that will bring a 21p rate into effect from April for installations from 3 March.’

If the government wins the appeal it may still backdate the lower FiT rate for any installations made on or after 12 December. A decision from the Court of Appeal is due in the next few weeks.

Friends of the Earth, which took the government to court last year for attempting to lower the FiT level 11 days before its consultation closed, welcomes today’s announcement.

Friends of the Earth's executive director Andy Atkins says: ‘At last the government is taking steps to sort out some of the uncertainty that's crippling a thriving UK industry – planned cuts will at last allow solar firms to start planning for the future.

‘Solar payments should be cut in line with falling costs – but by trying to rush through payment before the consultation closed ministers created a shambolic mess that threatens 30,000 jobs and the future of the industry.’

The government’s consultation into FiTs closed on 23 December with more than 2,000 responses received.

It plans to announce the outcome of the consultation by 9 February, in time for any resulting legislative changes to come into effect from 1 April.