Leicester-based solar energy firm Mark Group Ltd has gone into administration, leading to a loss of more than 900 jobs.
The move comes as the government proposed a 87% cut to the domestic feed-in tariff for solar energy.
Two months earlier, the UK Department of Energy and Climate Change had proposed to reduce the tariff paid for power generated by solar rooftop panels from 12.4p to 1.6p as of January 2016.
Solar Trade Association CEO Paul Barwell said: "This is terrible news for the UK solar industry. The consultation has not even closed, and businesses are already going under – despite the fact that the Government claim this is a ‘real’ consultation. Mark Group going into administration will also cause serious knock on effects in the supply chain."
"Surely this will set alarm bells ringing for the Government? Jobs matter, and there are 27,000 at stake. We are preparing alternative solutions and will be working with decision makers to discuss our alternative proposal for more structured, steady and workable reductions to support."
The Solar Trade Association’s study shows that up to 27,000 jobs in the solar energy sector could be slashed due to reduction in domestic feed-in tariff for solar energy.
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By GlobalDataAs a result of the high risk of solar losses, an alliance of organizations ranging from the National Farmers Union, the Confederation of British Industry, social housing providers and local authorities urged the government to reconsider its proposed cuts.
The Department of Energy and Climate Change spokesperson was quoted by bbc.com as saying: "All job losses are regrettable and we sympathise with those affected, but commercial decisions are a matter for the company concerned.
"Our priority is to keep bills as low as possible for hardworking families and businesses."
