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Local authorities are abandoning their solar power projects following the government鈥檚 decision to slash the feed-in-tariff subsidy, under which payments are made for every unit of electricity generated by solar panels.

Leeds council has halted plans to install at least 1,000 solar panels on council-owned homes, claiming the move is 鈥渘o longer viable鈥�.

The council said the project was only possible thanks to the FITs subsidy, which will be cut by almost half on 12 December. It would have seen around 1,000 solar panels installed in Leeds before March 2012 in a move which would reportedly have saved tenants about 拢120 a year on their electricity bills.

Neil Evans, Leeds council鈥檚 director for environment and neighbourhoods, said the local authority had already contacted 2,900 tenants about the possibility of installing solar panels on their homes.

He described the situation as 鈥渄isappointing鈥�, saying: 鈥淎s the change is coming much sooner than anyone had anticipated, we now, regrettably, have the task of writing to tenants again to let them know that surveys and installations are not going ahead.

鈥淚t鈥檚 disappointing to be the bearer of such bad news.鈥�

Reading council also anticipates a 鈥渄rastic鈥� fallout from changes to the FITS scheme, a spokesman said.

Councillor Paul Gittings, the Labour councillor for environment and climate change, said the decision to cut subsidies had 鈥渆ffectively scuppered鈥� Reading鈥檚 拢5m FITS scheme.

鈥淲e had a very good project planned, it was all geared to 31 March and suddenly we had the rug pulled from under our feet by the government deciding to make this [cut on] 12 December,鈥� he said.

Gittings urged ministers to reconsider this 鈥渁rbitrary cut-off date鈥�, saying it could damage the green economy.