Rt Hon Danny Alexander MP

Chief Secretary to the Treasury

HM Treasury
1 Horse Guards Road
London SW1A 2HQ

Rt Hon Vince Cable MP

Secretary of State Business, Innovation and Skills
Department for Business, Innovation and Skills,
1 Victoria Street,
London SW1H OET

c.c. Rt Hon Chris Huhne MP

Secretary of State for Energy and Climate Change
3 Whitehall Place
London SW1A 2AW

30 September 2010

Dear Chief Secretary and Secretary of State

Open letter on the Spending Review, Feed-in-tariffs and Investor Confidence implications for
Climate Change and Renewable Energy Policy

Collectively our organisations have invested substantially in the emerging microgeneration

sector in the past two years, and created thousands of new, green jobs. This direct investment
and job creation is multiplied many times throughout the supply chain in the SME sector, and
has only been possible due to confidence in Government keeping a stable regulatory and policy
framework in the energy sector.

In particular, the “feed-in-tariff” that guarantees small scale producers of renewable and low
carbon electricity a long term fixed price for their power has given investors the confidence to
grow an industry rapidly and in line with the Government’s expectations. There has been recent
press speculation that the Government may be considering the quite unprecedented step of
prematurely cutting the feed-in tariff payments prior to next year’s planned review of these
tariffs, the outcome of which would be due to take effect in April 2013.

Such premature adjustments to the tariff would have a profoundly damaging effect on long
term investor confidence in the clean tech and renewable energy sectors, and may cause
investors to flee altogether, thereby stifling any future investment and seriously jeopardising
this country’s ability to meet its climate change and renewable energy targets. It would
immediately destroy the value of recent investments in any company, technology or initiative
built on the back of the feed-in-tariff policy, and it would have damaging knock-on
consequences for investment appetites against both current and future policies in the climate
change / renewable energy sectors, and possibly in many unrelated sectors as well.

Our companies are fully committed to playing their part in helping to deliver the country’s
climate change and energy policy goals which are already challenging enough. Our ability to
attract future investment to continue to do so would be put in mortal peril by such an
unprecedented and confidence shattering intervention. In short, investors simply would no
longer trust Government not to make subsequent, unpredictable interventions.

We therefore urge you to keep investors confident that this Government will maintain the
necessary regulatory stability. If it does, we can continue to play our part in delivering these
crucial environmental and industrial policy goals. Please leave feed-in-tariffs well alone, at least
until April 2013.

Yours sincerely,

with explicit permission from and on behalf of:-

Dr Paul Golby Andrew Hillier Barry Johnston

Chief Executive Chief Executive Managing Director
E.ON-UK plc Ice Energy Solar Twin Ltd

Lee Cottingham Carl Arntzen Kelvin Stevens

Chief Executive Officer Director Managing Director
Mark Group Bosch Thermotechnology PTS, BSS Group

Mark Kelly Peter Bance Peter Rolton

Chief Executive Chief Executive Officer Chief Executive Officer
Baxi UK Ceres Power Holdings Plc Rolton Group

Kevin Webster Peter Thiele

Managing Director Executive Vice President
Romag Ltd Sharp Energy Solution

Mark Bullock Cameron Holroyd

Chief Executive Officer Managing Director
Solar Tech Ltd Kingspan Renewables

Donald Daw Jeremy Leggett

Divisional Director Executive Chairman
Mitsubishi Electric Europe Solar Century Holdings Ltd
Juliet Davenport Stephen Rennie Julian Ghail
Founder & CEO Managing Director Director
Good Energy Ltd Calor Gas Ltd Flamefix Ltd

John Blower Mark Shorrock Ian Hornblow

Managing Director Chief Executive Officer Managing Director
Filsol Solar Ltd Low Carbon Solar Partners Ltd Ecohouse Solar

John Seed Howard Johns Mo Kelly

Managing Director Managing Director Managing Director
Overdahl UK Ltd Southern Solar Ltd SASIE Ltd

Philip Wolfe Colin Mallett Anna Casswell

Chairman Chief Executive Officer Director
Ownergy plc Trusted Renewables Ltd Plumb Solar Ltd

Peter Randall Mark Dickinson George Robinson

Managing Director Managing Director Director
Ecovision Systems Ltd Energi Plc Advance Heating

Daniel Green Geoff Fox David Maloney

Chief Executive Officer Managing Director Director
HomeSun Ltd Solar UK Ltd Elfsec Ltd

James Stoney Fred Best Philip Rees

Managing Director Technical Director Managing Director
Next Generation Turbines Ltd EIS Group Ltd Solar FIT

Kate Sizer Gary Hills Andy Barrett

VP + MD of Europe Managing Director Director
Southwest Windpower Fronius UK Ltd Eco-Exmoor Ltd

David Moriarty Gary Burgess Robin Welling

Managing Director Director Managing Director
Whisper Tech Ltd Enerlux Ltd TiSUN©GmbH

Matthew Rhodes Mark Krull Kaz Morris

Managing Director Director Managing Director
Encraft Ltd Logic Certification Ltd Aran Services Ltd

James Hoare Akta Raja Julie Walker

Managing Director Executive Director Managing Director
Ardenham Energy Ltd Green Tomato Energy Ltd Sevenoaks Energy Academy Ltd
Adrian Hutchings Tristan Fischer
Chief Executive Officer Chief Executive Office
Energetix Group Plc Lumicity Ltd

Andrew Hodchild Stephen Barratt

Managing Director Director
Eco Heat & Power Ltd Solar Sense UK Ltd

Marc Von Briel Geoff Fox

Managing Director Managing Director
Schueco UK Ltd. Solar UK

Martin Dowd Jim Kenney

Managing Director Managing Director
MG Renewables Ltd Chelsfield Solar

Stephen Thornton
Chairman
Alectron Investments Ltd

Martin Cotterell
Managing Director
Sundog Energy Ltd

Kevin Hard
Managing Director
Evo Energy Ltd

Dave Samuel
Technical Director
Leading Edge Turbines Ltd

Bruce Davis
Managing Director
Eternal Energy Systems Ltd

John Meadows
Managing Director
Schott UK Ltd

Emma McCarthy
Chief Operating Officer
NICEIC