People hoping to install solar panels are being urged to take advantage of a solar power ‘gold rush’ before the Government halves its popular pay back scheme.

The Government had planned to cut the current feed in tariff, the price paid for people’s excess solar powered electricity, from 43.3p p/kWh to just 21p.

However, a ruling at the Court of Appeal last week secured homeowners a temporary window of opportunity by granting that any installation registered and installed before March 3 this year will receive the higher rate for the next 25 years.

The Government is now appealing that ruling arguing that the rate is too high and continuing to pay it is a waste of taxpayers money.

Those putting up solar panels after March 3 will only receive 21p p/kWh from April 2011, half the rate of long term solar panel owners.

David Hunt, a director with leading renewable energy company Eco Environments, said: "This is an almighty kick in the teeth for the Government, but a fantastic result for consumers who have either gone ahead with an installation since December 12 or are keen to do so now.

"The phones have already started ringing with homeowners keen to cash in on this mini gold rush.

"Given that the cost of Solar PV installations has dropped dramatically since December 12, consumers can now achieve breathtaking returns on investment.

"In year one the return is 18 per cent, while the average return over 25 years is a staggering 39 per cent if you include inflationary increases in FIT payments and electricity price increases.

"Customers will also be able to enjoy a payback period of just three years."

A full Government consultation on rates for electricity from solar panels is due to be launched on February 9.