Projects will be protected that made financial commitments prior to May 13 2014, when the consultation on the change began.
The STA has criticised the decision as damaging to the industry, particularly as RO spending on solar fell to just 1.3 percent of the total budget in 2013/14.
STA chief executive, Paul Barwell, said: “The large scale solar sector has been in shock since DECC’s consultation was announced back in May. Why is it the UK government is putting this industry’s incredible achievements on solar power at risk?
“This is not a good outcome for consumers either. Why remove support for solar power when it could be the first low carbon power source to become subsidy free by the end of the decade?
“Today’s decision represents a serious strategic mistake in energy policy which is not supported by the facts and flies in the face of the urgent need for cost-effective action on climate change.”