Solar FIT Changes (1)

Meeting: 
MQT on 2016-01-20
Session date: 
January 20, 2016
Reference: 
2016/0280
Question By: 
Murad Qureshi
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

Following the announcement that subsidies for small scale solar electricity panels on homes are to be cut, what progress have you made in examining the potential for a London FIT?

Answer

Answer for Solar FIT Changes (1)

Answer for Solar FIT Changes (1)

Answered By: 
The Mayor

I am of the view that we need a sustainable transition to subsidy-free solar PV. It appears that the changes to the FIT, whilst significant, should still ensure a solid return on investment of householders.  The Solar Trade Association has calculated that under the new FIT rates, a domestic solar installation can deliver a tax-free, inflation-linked return on investment of around five percent.  This is still higher than most savings accounts, so I do not believe a London FIT is necessary to help the market make the transition to operating without subsidy given this rate of return.