Renewable energy firm Global Heat Source has ceased trading, with the loss of 25 jobs, after orders dropped to almost nothing following subsidy cuts.

The firm at Parkhouse, Carlisle, specialised in installing solar photovoltaic (PV) panels.

It is the third high-profile Cumbrian casualty of the Government's decision to slash solar feed-in tariffs.

EcoLogicLiving of Carlisle and Sundog Energy in Penrith collapsed earlier in the year.

Global Heat Source, incorporated in 2009, was run by directors James McLinden and Leigh Hoskins. Customers included Carlisle United and Story Homes.

It employed 25 staff in Carlisle who have been made redundant with the exception of the bookkeeper.

The administration is being handled by the Preston office of insolvency practitioner Begbies Traynor.

A report by the administrators says: "The business enjoyed rapid growth with turnover increasing from £60,000 in 2012 to £12m in 2015 as a result of the public interest in the renewable energy sector.

"It was predicted that the company would reach turnover of circa £20m for the year to March 2016."

Reductions in solar feed-in tariffs and the Renewable Heat Incentive scheme were blamed for pushing the business into administration.

The feed-in tariff was cut from 20p per kilowatt hour (KWh) to 12p in 2015, and then again to 4.39p/KWh in February this year, dramatically lengthening the time it takes for solar panels to pay for their installation.

The report says: "The effect decimated the residential market overnight as the installation of panels would no longer be viable if residents were not planning to stay in their homes for an extended period.

"In some cases it would take 20 years or more for customers to see any financial benefit."

It adds: "In December the Government announced further plans to reduce subsidies, effective from February 1. The company's order book reduced to nil practically overnight."

Begbies Traynor has said it expects the company to be dissolved at the end of the administration period.