A HIGH court judge yesterday gave a ray of hope to hundreds of North-East solar industry workers after allowing a legal challenge to the Government's abrupt slashing of subsidies.

Mr Justice Mitting, sitting in London, said the cutting of the subsidies for solar panels, known as feed-in tariffs, had given rise to ''economic risk'' for those engaged in the industry and the challenge should be heard as a matter of urgency next week.

Environmental campaign group Friends of the Earth and two solar companies - Solarcentury and HomeSun - won the go-ahead to seek a ruling that the proposals are unlawful.

As widely expected, the Government announced at the end of October that it intended to reduce the Feed-in Tariffs (Fits) subsidy from 43p per kWh to 21p per kWh, after the scheme was massively oversubscribed, and started a consultation with the industry.

But firms were angry that they were then given only six weeks, until

December 12, for customers to receive the existing tariffs, which last 25 years, despite the consultation period not finishing until December 23.

Many installers with advanced orders struggled to fulfil them prior to Monday.

The North-East Renewables Alliance (NERA), a consortium made up of small firms which install renewable energy devices, had already warned jobs are at risk at more than 100 companies set up in the region.

Earlier this month Carillion Energy Services, which employs around 1,000 in renewable energy work at Newcastle, told 4,500 staff they were at risk of redundancy after the Government's decision.

Last night Malcolm Potter, of NERA, said: "You don't go into a consultation period and halfway through say you have made this decision anyway, especially a decision that colours everything that comes out of the consultation.

"It is good news we are going to get a clear response on the challenge within that consultation period."

Mr Potter said firms accepted something had to be done about the tariff rates but the abrupt way in which it was carried out had caused anger.

He added: "That is what upsets people. Over the past couple of years there has been a significant increase in the growth of the sector, thousands of companies have been set up and thousands of people employed, because of Government policy.

"There was a clear policy route set down, people looked at that, saw an opportunity in these difficult times and spent large amounts setting themselves up in business.

"If it had been done over the next 12 months it gives you a chance to manage your business, what the Government did didn't allow them the opportunity to do that."

Friends of the Earth said tens of thousands of jobs could be lost and businesses bankrupted, adding unfinished or planned projects had already been abandoned.

Its executive director Andy Atkins said: "These proposals have already had a disastrous impact on the solar industry. Businesses have had the rug pulled from under their feet."

John Faulks, Solarcentury's company secretary, said: ''The industry was expecting a cut and would have actively engaged with the Department of Energy and Climate Change (DECC) to create a sustainable scheme."

The judge said the application for judicial review against Energy Secretary Chris Huhne should be heard next Tuesday and Wednesday as it seemed to him an immediate risk had been created ''for those who are installing solar panels after December 12."