Scottish Energy Minister Fergus Ewing is pressuring the UK Government to commit to a long term sustainable future for the Renewable Heat Incentive (RHI).
The RHI is an environmental programme by the government which provides financial incentives to increase the uptake of renewable heat.
However, Minister Ewing is campaigning for Scottish businesses who are losing out due to indecisions on the future of the incentive.
It is understood he has written to UK Energy Secretary Amber Rudd asking for urgent clarification.
"Without continuation of the Renewable Heat Incentive, or a substantive replacement, there will be a substantial impact on renewable heat businesses and jobs in technologies, with disastrous results for the future of these Scottish businesses," Minister Ewing said.
"The uncertainty from the UK Government has been going on too long now and it is time to provide clarity for this industry."
Dave Pearson of Star Renewable Energy, which installs water source heat pumps, said: "Our company has participated in feasibility studies, supported by the UK Government, for tens of millions of pounds of potential UK projects which could be scrapped if the RHI isn't confirmed.
"We have already seen some schemes delay decisions about capital investment until they have some certainty on whether or not the RHI will continue beyond March 2016.
"The RHI is a world class incentive scheme, and it is imperative that it continues."
(LM)
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