Solar panels in Spain: Grants
In 2024, subsidies and incentives for the installation of solar panels remain in place, with the goal of continuing to facilitate the transition to renewable energy. If you install solar panels at home, you can benefit from reductions in the Personal Income Tax (IRPF), the Property Tax (IBI), and the Tax on Constructions, Installations, and Works (ICIO).
The European Next Generation grants are currently unavailable, but you can still deduct up to €9,000 from your IRPF for your solar panels.
1. Solar energy grants for homeowners in Spain
In Spain, apart from the European subsidies, the following allowances and deductions are available.
IRPF deduction
With the installation of a photovoltaic system at home, it is possible to obtain a deduction of between 20% and 60% on the personal income tax (IRPF), depending on both the energy improvement achieved and the type of housing.
To certify this energy improvement and determine the applicable percentage of reduction in each case, an energy certificate must be issued before the installation and another one afterward. This will establish whether the deduction is 20%, 40%, or 60%.
The 20% and 40% deductions require the installation to be completed before December 31, 2024. The 60% deduction, with an annual limit of €3,000, allows the remaining amount to be deducted over the next four years, up to a maximum of €9,000. The installation must be finished before January 1, 2026.
ICIO deduction
The ICIO is the Tax on Constructions, Installations and Works. It is an indirect tax that must be paid on any construction, work or installation for which a building or urban planning licence is required.
Currently, in many Spanish municipalities there are bonuses for these taxes. The percentage of the rebate is established by each locality. The rebate usually ranges from 30-95% in most cases.
The ICIO rebate can be applied for online or by going to your local registry office.
IBI (Real Estate Tax) deduction
The IBI (Impuesto sobre Bienes Inmuebles) is compulsory and is paid annually, depending on the amount and the period for payment, depending on what each municipality establishes. Many Spanish municipalities are offering a rebate on this tax for homeowners who have installed photovoltaic systems.
The municipalities are in charge of managing this procedure and defining the rebate percentage and the duration of the rebate. Some municipalities offer rebates of up to 50% for several years. The IBI rebate can be applied for in different ways: electronically, by register or in person at the town hall.
2. European subsidies – Next Generation for residential and commercial
Currently, Next Generation grants are not available. We are awaiting future updates and will provide more information as soon as it becomes available.
The subsidies for solar panels included in the Recovery, Transformation and Resilience Plan are financed with European “Next Generation” funds. These grants are divided into 6 different programmes and each call is designed to promote a type of installation among companies or individuals.
Who can apply for solar panel subsidies?
Solar panel subsidies available for homeowners
Within the “Next Generation” funds there are subsidies to finance the installation of solar panels, batteries or aerothermal energy for homes, public administrations or the third sector. These are incentive programmes 4, 5 and 6, for individuals.
- Incentive programme 4: subsidise the installation of solar panels for self-consumption in the residential sector, public administrations and the third sector, with or without storage.
- Incentive programme 5: subsidise the installation of solar batteries in the residential sector, public administrations and the third sector.
- Incentive programme 6: subsidise the installation of thermal renewable energies in the residential sector (thermal panels or aerothermal)
Commercial grants for solar panels (companies and the self-employed)
Within the “Next Generation” funds, there are subsidies for solar panels for companies, SMEs and the self-employed. Incentive programmes 1, 2 and 3 are available to them:
- Incentive programme 1: subsidise the installation of solar panels for self-consumption in the service sector, with or without storage.
- Incentive programme 2: subsidise the installation of solar panels for self-consumption in other productive sectors, with or without storage.
- Incentive programme 3: subsidise the installation of solar batteries in the service sector and other productive sectors.
How to apply for Next Generation subsidies for solar panels?
- Application for the subsidy: This consists of choosing 1 of the 6 programmes and sending all the documentation through the website of the corresponding Autonomous Community.
- Resolution and awarding of the subsidy: The presentation of the subsidy does not imply its award. For this, it will be necessary to wait for the list of beneficiaries of the programme to be published in the National Database of Subsidies and filter by Autonomous Community or Autonomous City.
- Justification of the installation: The implementation of the subsidy must be justified to the autonomous region and the Institute for Energy Diversification and Saving (IDAE). There is a period of 18 months to justify the subsidy. If more time elapses than the period established by the autonomous region, the right to the subsidy may be lost.
- Payment of the subsidy: Oncethe aid has been justified and all the formalities have been completed, the State will pay the subsidy into the account number provided.
Discover everything about the process in this video: Solar panels in Spain, legalisation and grants
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How is the solar panel subsidy calculated?
Currently, there are different grants and subsidies available for photovoltaic systems in Spain. On one hand, there are subsidies from the European “Next Generation” funds, which amount to 600 euros per kWp installed. There are also IBI rebates of up to 50% for several years. The percentage of the rebate and the years of duration depend on each municipality. Finally, it is possible to obtain a deduction in the IRPF of between 20 and 60%, depending on the energy improvement obtained in our home.
How long does it take to pay the subsidy for solar panels?
The time it takes to receive the subsidies for self-consumption systems with solar panels depends on the type of subsidy applied for and on each autonomous community, as each one has specific times for this. Normally, within 6 months of applying for the subsidy, the autonomous community will give an answer as to whether or not it has been granted. From this moment on, the payment of the approved aid may take more than a year to be made.
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