SCHEMES encouraging people to install solar panels and save energy have cut household power consumption and will restrict the pace at which electricity bills increase in coming years, a new analysis has found.

While solar incentive schemes have been criticised as an expensive way to reduce greenhouse gas emissions, an industry analysis has found they have led to a reduction in the amount of fossil fuel electricity drawn from the national power grid.

It suggests it is likely no new baseload power plants will be needed over the next decade.