Leaders of the renewable energy industry are calling on the government to spend the £625 million it has pledged immediately.
According to the Renewable Energy Association (REA), the UK is already lagging behind countries like Germany, France, America and China in terms of sustainable energy investments and the government needs to act quickly to boost green energy supplies in the short-term.
The REA claims that France is spending three times as much money on renewables compared with the UK, while China is proposing spending 100 times greater.
Andrew Lee, general manager for module sales at Sharp Solar, told New Energy Focus: "I think companies will definitely go under if grants are no longer available for renewable energy systems - industry installers will go under. There would be a tremendous loss of jobs."
Meanwhile, in an article in the Times by Ed Miliband and Peter Mandelson, the ministers claim that the move to a low carbon economy will require root and branch changes.
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