The housing maintenance specialist said the move would cut £2.8m from its operating profit this year and would lead to a write-off of £2m spent setting up the division.
The government announced plans last month to halve the Feed-in Tariff subsidy for solar Photovoltaic (PV) work.
Mears said: “The Board has been evaluating the business case for PV and conclude that the prudent course of action is to cease these activities immediately, as the commercial attractions that led us to explore the PV space, in the short term, no longer exist.
“As a direct result, Operating Profit is likely to fall short of our previous expectations in the region of £2.8 million for the current year.
“In addition we believe it appropriate to write-off costs relating to the site set-up, system design and installation amounting to approximately £2.0 million which are now considered irrecoverable.”
Chief executive David Miles added: “It is unfortunate that we have wasted both time and resource in this area over the past six months.”