THE government is to act to stop large scale solar energy “farms” from using up money aimed at helping people who want to save on domestic energy.

Started under the previous Labour administration, the scheme offers cash subsidies to people who install solar panels on the roofs of their homes.

This not only saves energy, but people are also able to sell their surplus electricity to the National Grid through feed-in tarriffs (FITs).

But the government is now reviewing the scheme because of the increasing number of large scale solar power schemes which it claims are “hoovering up” the money.

Energy Secretary Chris Huhne says he is concerned about projects such as those in Cornwall where the county council has recently approved a fourth “solar farm” scheme which will contain thousands of solar panels.

A typical home installation produces about 2.5kW of energy.

Homeowners are advised they can earn £800 a year from their tarriff payments which are index linked and guaranteed for 25 years.

At the same time householders can also save an estimated £120 a year from lower heating bills.

But to get these benefits, they have to pay the cost of installing the solar panels, which can cost around £10,000.

The maximum size of a solar installation under the current scheme is 5,000kW.

Mr Huhne says “Large -scale solar installations were not anticipated under the FIT scheme we inherited and, as far as I am concerned, this could mean money meant for people who want to produce their own green electricity has the potential to be directed towards large-scale commercial solar projects.”

The government has now announced a review of all FITs and is to fast track a review for larger solar installations with a view to cutting the level of support.

Details of the FITs scheme are available from the Department of Energy and Climate Change at decc.gov.uk and planning advice on installing solar panels can be found at bexley.gov.uk/CHttpHandler.ashx?id=1453&p=0