Providers of Solar VCT investments have moved to close their latest schemes after the government proposed bringing forward the deadline for slashing subsidies.
The government proposed last week to bring forward a planned reduction in fee-in-tariff rates to 12 December this year, in a move which slashes the subsidy received by investors by 55%.
Previously, projects which were connected before the end of March would have received the higher rate of subsidy.
The move - which is widely expected to come into effect despite officially being just a proposal at present - has caused VCT providers to scrap planned launches and close current offers.
VCT provider Downing is closing its Downing Low Carbon EIS Fund 3 today after the change, warning it expects the proposals to be implemented.
Downing said in a statement: "Whilst the Department for Energy and Climate Change has announced these proposed changes as a consultation, it is Downing's view that there will be no changes to these revised tariffs as a result of the consultation (i.e. the reductions will remain).
"This was the case in the previous consultation period in relation to reductions to the FIT rates for solar installations.
"Fund 3 has raised £4.5m to date. In order to ensure existing investors in Fund 3 benefit from the best available opportunities, the fundraising will be restricted by closing the offer on Monday 7 November 2011."
Triple Point - which had been looking to raise £10m for a Solar EIS - has also pulled its offer from the marketplace after the government announcement.
Meanwhile, Octopus Investments is altering the terms for future solar EIS vehicles it offers. The group - which defers its fees - will now start to take its payment after investors have received 100% of their initial investment back. Previously it deferred its fees until investors had received 105% of their initial investment.
Some groups have left open products however. Ingenious said the Ingenious Solar UK EIS investment opportunity would remain open as planned until March next year as it seeks to buy assets where there is no development or construction risk, only acquiring accredited assets.
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