MAYOR OF LONDON ‘Andrea Leadsom MP ‘Our ref: MP20151022 Minister of State for Energy Departrent of Energy and Climate Change 3 Whitehall Place Date: 22/10/2015 London SWiA2AW Dees Retr ease find enclosed the Mayors response tothe Government's consultation on its proposed chenges tthe Feed-in-Tatf fr solar PV generation, The Mayor strongly endorses the Government's view that subsiy shouldbe reduce es fast 3 practicable and resonable; renewable energy, including sler PV must be cost competitive and not have an adverse impact on cansures' ils. Inthe past few years solar PV costs have come done extremely quickly so tat its almost within gr parity and is key to be cost competitive without fubey jet «Fe yore However, the Mayor believes thatthe solar PV industry needs some certainty ovr the net few years asit transitions to a subsidy-fre end long-term sustainable future, Pipelines need tobe bul and subsid-free business plans made to secure investment to ensure the industry is sustainable Unfortunately the current proposals, which have been consuited on, with iti or no prior warning, to ‘ome into force in the new year has created grat uncertainty in the solar PVindusty, potentially putting a threat thousands of jobs across the UK. The Mayors concerned about the potential impact ‘on the 3,100 jobs, miny in SMES, wich meke up the slar PV industry In London. In adetion his energy efficiency programmes have been affected by the current uncertainty “The Mayors view is that in order to ensure an orderly transition to subsidy fee solar PV industry, there should be a gradual tapering ofthe FIT over a two-three year peri. This woud provide 2 clear pathway, avoiding 2 serpcliff-edge and providing that catainty forthe industry Investors and consumers thereby reducing the impact of business and jb losses, creating 2 sustainable, subsidy-free solar PV industry Att bve-~ 2o—\ matthéw Pencharz Deputy Mayor for Environment & Energy