The predicted review – which would be the third RO review for solar in three years – would be likely to reduce the support on offer for large-scale, ground-based solar projects.
The Solar Trade Association (STA) said it has been “concerned about this prospect for some time” and warned that any changes to the support mechanism could undermine the solar sector.
Paul Barwell, STA chief executive, said: “Investor confidence and market stability is absolutely essential in order to deliver sustained cost reductions for consumers and a healthy solar industry for UK plc.
“We are obviously on tenterhooks to see what changes the Department of Energy and Climate Change (Decc) is proposing to make.”
The Renewable Energy Association (REA) chief executive, Nina Skorupska, also warned that changes to the RO mechanism would harm the sector.
She said: “Drastic changes to policy – to which solar power is no stranger – can lead to job losses and damage investor confidence across the renewables industry.
“We urge Decc to tread very carefully if it does indeed plan to review the support mechanisms for large-scale solar.”
The threat of a RO review comes despite the fact that in a written answer to parliament in March, energy minister Michael Fallon said: “There is no comprehensive banding review planned for the RO scheme before it closes to new generation on 31 March 2017.”
A Decc spokesperson said: “We’re very clear that government support for solar PV has to deliver the best value for money to consumers.
“As technologies mature and costs of generation come down, those savings have to be passed on to bill payers.
“We will consult on any changes to current levels of support to solar PV.
“Our ultimate goal is for renewables to be competitive with other forms of electricity generation.”