Subsidies for households to install solar panels are expected to be slashed.
The discussion on how far to cut the Feed-in Tariff (FiT) for small-scale solar has been hotly debated, reports the Financial Times.

Some industry sources reportedly say that officials in the Department of Energy and Climate Change are calling for a reduction in the subsidy by three-quarters.

One coalition source told the Financial Times that money had been 'flying out' of the scheme's fixed budget, and that the original tariff levels had been set 'embarrassingly' high.

Climate change minister Greg Barker is believed to be arguing for a compromised tariff that would be lower than at present, but that would potentially reduce the expected impact on the industry.

Ministers are also expected to announce a shake-up of wind power incentives from 2015, which will cut subsidies for onshore wind, but improve state help for wave and tidal power.