The Government is delaying proposed Feed-in Tariff cuts that were due to take effect from the start of July.
The move follows warnings that the planned reductions threatened to throw off course the UK's renewable energy production targets
According to the Solar Trade Association, total installed capacity in the last four weeks plummeted to 17.4MW compared with an average four weekly installed capacity of 71MW over the past year.
Earlier this month, senior figures in the solar energy sector wrote to Prime Minister David Cameron urging a rethink, warning that demand for panels had collapsed.
Climate Change Minister Greg Barker said on Twitter: 'Having listened carefully to industry, we are looking at scope for pushing back a little the next proposed reduction in the solar tariffs.'
