The amount of money paid to home owners and businesses producing electricity from roof-top panels is to fall from 12.92p per kilowatt hour to 4.39p.
Based on government estimates, 1,870 out of 3,230 jobs are at risk.
Sheffield council voted on Wednesday to stop fitting panels on homes because it was no longer affordable.
The region has been one of the largest adopters of the renewable energy source, with 62,149 solar homes and 1,744 big solar rooftops on schools, warehouses and other commercial buildings.
In 2011, roof-top panels were fitted to Bradford Cathedral, at a cost of Â£50,000, making it the first in the UK to generate power in such a way.
If a company has gone bust, householders with solar panels should check whether the equipment has insurance-backed warranty, which may cover repairs.
If this is not the case, the Solar Trade Association can put people in touch with a member who is part of its repair agreement service.
The average cost for a 4kWp system, which comprises 16 panels, is about Â£5,600.
The feed-in-tariff system was designed to give financial incentive for home owners and businesses to install the equipment.
It pays producers a subsidy for the electricity they generate, plus a bonus for any electricity exported back to the national grid.
Homeowner Dan Andrews had the solar panels fitted at Christmas and said he would not have paid almost Â£8,000 for them under the new tariff.
"We wouldn't have done it with the changes being brought in," he said.
"It's a big investment over a long period of time and it's not worth the risk when the payback could be in 15 or 20 years time."
The industry said the cut, which comes into effect from midnight, had already cost 6,500 jobs nationally and estimated up to a total of 18,700 jobs could be under threat across the UK.
Thomas Newby, managing director of The Phoenix Works, a renewable energy installation company in Farsley, said solar panels represented 60% of his turnover and the reduction put the firm in "a lot of difficulty".
"A lot of people buy them in part for ideological reasons but there's obviously a financial element and it's got to make financial sense."
The government said it continued to support low carbon sector but for it be sustainable it needed to be driven by competition and innovation, not subsidies.

It comes less than two weeks after former presenter Gretchen Carlson sued Mr Ailes for sexual harassment and wrongful termination, claims he denies.
The New York Times, citing a source, said Mr Ailes and parent company 21st Century Fox were in the advanced stages of talks on his departure.
The company would only say Mr Ailes was at work and a review was ongoing.
A report in New York magazine, citing anonymous sources, says lawyers for 21st Century Fox have given Mr Ailes a deadline of 1 August to resign or face being fired.
The lawsuit filed by Ms Carlson claims she was fired after refusing his sexual advances.
She worked for the conservative-leaning US network for 11 years before her contract expired in June.
Mr Ailes strongly denies the allegations and says Ms Carlson filed the suit in retaliation for not having her contract renewed.
"This defamatory lawsuit is not only offensive, it is wholly without merit and will be defended vigorously," he said.
Further allegations have since surfaced in US media that Mr Ailes sexually harassed another Fox News presenter, Megyn Kelly.
According to New York magazine, Ms Kelly has told investigators that Mr Ailes made unwanted advances towards her about 10 years ago when she was a correspondent.
A lawyer for Mr Ailes, Susan Estrich, denied those claims in a statement on Tuesday.
More than half the jobs in the solar panel industry in Yorkshire and the Humber are at risk through a government cut in subsidies for householders.
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Fox News Channel boss Roger Ailes is negotiating his departure from the network, according to US media reports.