Department of Energy Climate Change (DECC) cuts to support small-scale renewables will affect Scotland's homeowners, businesses and climate change targets, according to Scottish Renewables.
The organisation said the removal of support for some wind projects and a 86% reduction in solar would 'severely curtail' development.
It added that the cuts to the Feed-in Tariff (FiT) scheme, through which small renewables projects are funded, could spell the end for much of Scotland's hydro sector.
Scottish Renewables said the decisions will limit growth in small-scale green energy projects and potentially close the scheme to new projects in early 2016.
Joss Blamire, Senior Policy Manager at Scottish Renewables, said: "The proposals in the Comprehensive Feed-in Tariff Review are, quite simply, terrible news for homeowners, businesses, communities and those local authorities which have plans in place to develop renewable energy schemes. "The levels of reduction in support announced today will severely curtail development of small-scale onshore wind and solar projects and endanger jobs and investments across the country. "The cuts could also spell the end for much of the hydro industry, which has enjoyed a recent renaissance but relies more heavily on Government support because of the length of time taken to develop projects and the sector's high capital costs."
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