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DTI grants for the photovoltaic programme, which funds research into generating electricity from sunlight, will be stopped in December.

It is not yet known if the industry will receive other sources of funding, as the government views photovoltaics as too expensive for domestic use. This is despite promises in 2003 that it would deliver a 10-year programme to 鈥渆stablish the UK as a credible player in the photovoltaics market, alongside Germany and Japan鈥�.

The government has instead thrown its weight behind the Low Carbon 好色先生TVs Programme, which will offer millions of pounds to microgeneration projects that incorporate wind turbines, solar power or combined heat and power units.

Specific funding for the programme, which will run for six years from 1 April 2006, has yet to be allocated.

Jeremy Leggett, chief executive of photovoltaics supplier Solar Century, said: 鈥淭he news comes as recent figures reveal that the UK solar PV market has fallen behind its major competitors. In 2004, the UK installed the equivalent of 1100 roofs. In the same year, Germany installed the equivalent of 180,000.鈥�