How to get up to 60% of your solar installation costs back in 2024

If you’re interested in grants for solar panels in Spain in 2024…then you’ve missed the boat.

Solar panel subsidies ended on 31st December 2023.

But don’t leave this page yet.

There are still three important things to know:

1. The Spanish government has asked the EU for additional funding up to €163 billion to continue the package of solar grants until 2026
2. You can still get up to 60% of your installation costs back as a solar panel tax rebate depending where you live in Spain
3. You can still access reductions in your property tax (IBI) and the licences needed to install solar panels (ICIO) depending on the municipality where you live

You might be disappointed to read that solar panel grants in Spain (sometimes amounting to over €3,000 for regular-sized solar panel installations) are not set in stone in 2024.

But here’s the thing.

Very few of our clients have actually received their solar panel grant even though we presented their application back in 2021.

Meanwhile, we’ve had these same clients already save €1,500 as a tax rebate.

See this message from one of them:

In fact, the solar panel tax rebate could be more valuable now that the solar panel grants are not available.

Read on to find out the finer details.

Table of Contents

1. Can you get a grant for solar panels in Spain in 2024? 
2. How much grant cash would I receive for a solar installation?
3. How long would it take to receive the grant?
4. What tax rebates are available for solar panel installations in Spain?
5. Can I get a reduction in my property tax (IBI) after installing solar panels?
6. What other incentives are available?
7. What are the requirements to receive a tax rebate or property tax reduction for solar panels?
8. How can I find out how much I could receive in tax rebates and property tax reductions for solar panels in Spain?

Can you get a grant for solar panels in Spain in 2024? 

The Real Decreto 477/2021 published June 2021 announced €1.3 billion in funding for homes and businesses to install solar panels, solar batteries and aerothermal units in Spain.

Funds were from the European Union and part of the NextGenerationEU recovery plan.

But this funding ended on December 31st 2023.

The Spanish government has requested for funding to continue until 2026. However, at the time of writing this there is no confirmation of further solar panel subsidies in Spain.

They may be approved in the coming months.

It is very likely that – subject to approval – the solar grants will work retrospectively meaning you could install solar panels today and still get the subsidy payment.

So in case you’re interested, you can see what was on offer below:

Programme	Beneficiaries	Installation	Grant	Deadline
Nº 1	Service businesses	Solar panels	Up to 45%	31/12/2023
Nº 2	Other businesses	Solar panels	Up to 45%	31/12/2023
Nº 3	Businesses (with an installation)	Solar batteries	Up to 65%	31/12/2023
Nº 4	Homeowners	Solar panels	Up to 600 €/kWp	31/12/2023
Nº 5	Homeowners (with an installation)	Solar batteries	Up to 450 €/kWp	31/12/2023
Nº 6	Homeowners	Thermal solar panels/ aerothermal	Up to 900 €/kWp	31/12/2023

For anyone installing solar panels on their own residential property in Spain then programmes 4-6 are the ones to look at.

Not sure what kWp means?

KWp stands for the kilowatt ‘peak’ power output of your solar installation.

If you have 10 solar panels installed each with a maximum output of 500W then you would have a 5 kW system (10 x 0.5 kW) and therefore a kWp of 5.

Is it likely your solar installation would be under 10 kW?

If you’re a homeowner, most likely.

A 10 kW system is relatively large and could be suitable if you pay around €4,000 each year in electricity bills, or wish to power a range of high-power appliances like an electric car charger, aerothermal systems, a pool heater, air-conditioning and so on.

What about the solar battery?

The solar battery was only considered valid for a grant if your property is off-grid.

In most cases, our clients install solar panels on a property that is currently connected to mains electricity, and so the majority of grant applications were made were according to programme Nº 4.

How much grant cash would I receive for a solar installation?

This question confused many people about the grants for solar panels in Spain.

The EU-funded solar grants are still being paid out in 2024 even though the deadline to apply for them was 31st December 2023.

As we said above, people have actually received this subsidy already.

But in case you want to see how it worked let’s take the example of a 5 kW system.

In the Valencian region you can receive the full 600 €/kWp – this would mean €600x5kWp or €3,000 total.

This is the total amount you can expect to receive in cash.

Here’s an overview of the €/kWp that was on offer in each of Spain’s 17 autonomous communities:

Autonomous Community	€/kWp for < 10kWp	€/kWp for 10kWp-100kWp
Andalucía	600 €/kWp	450 €/kWp
Aragón	600 €/kWp	450 €/kWp
Asturias	600 €/kWp	450 €/kWp
Canarias	600 €/kWp	350 €/kWp
Cantabria	600 €/kWp	450 €/kWp
Castilla–La Mancha	600 €/kWp	450 €/kWp
Castilla y León	600 €/kWp	350 €/kWp
Cataluña	600 €/kWp	450 €/kWp
Comunidad Valenciana	600 €/kWp	450 €/kWp
Extremadura	600 €/kWp	450 €/kWp
Galicia	600 €/kWp	450 €/kWp
Islas Baleares	600 €/kWp	450 €/kWp
La Rioja	600 €/kWp	450 €/kWp
Madrid	600 €/kWp	450 €/kWp
Murcia	600 €/kWp	450 €/kWp
Navarra	600 €/kWp	450 €/kWp
País Vasco	600 €/kWp	450 €/kWp

How long does it take to receive the grant?

PLEASE REMEMBER: the solar grants are not currently available in 2024.

But we are keeping this information here in case the extension is approved and the solar panel subsidies come back online until 2026.

In case you are interested to know, there were four steps involved in the grant process:

1. Application
2. Resolution
3. Justification
4. Payout

The official waiting period before receiving the resolution (i.e. notification that your application has preliminary approval) was a maximum of six months.

But you don’t have to look far on online forums to find people who have been waiting 12 months or even 18 months to receive the resolution on their grant application.

If you make a mistake on your application you might be asked for further information or clarification…and have to wait longer.

This is why solar installers like MiSolar make the application on your behalf.

But despite our clients already receiving a favourable resolution on their solar grant, most are still waiting to receive the grant itself.

What tax rebates are available for solar panel installations in Spain?

This section is of interest to people installing solar panels in Spain in 2024.

Depending on where you live, you can get a rebate in your annual tax return otherwise known as the declaración anual de la renta or by the acronym ‘IRPF’ which stands for the Impuesto sobre la Renta de las Personas Físicas.

The deduction can be 20-60% of your total solar installation costs depending on where you live.

And get this.

Before now, your accountant would have subtracted the grant payment from the total installation cost in order to calculate your tax rebate.

This means your tax rebate will be higher in 2024 now that grants are no longer available.

According to the Agencia Tributaria this incentive is available until 31 December 2024 and applies to the following three situations:

• 20% deduction – for a solar installation that reduces your property’s heating and cooling demand by at least 7%
• 40% reduction – for a solar installation that reduces your property’s consumption of non-renewable energy by at least 30%, or that helps your property achieve an A or B energy rating
• 60% reduction – for a solar installation that reduces your property’s consumption of non-renewable energy by at least 30%, or that helps your property achieve an A or B energy rating

With the 40% deduction the taxable base may not exceed €7,500. This means the maximum tax rebate you could receive is €3,000.

With the 60% deduction the taxable base may not exceed €5,000. This means the maximum tax rebate you could receive is €3,000. But this specific incentives lets you claim the rebate for 4 consecutive annual tax returns up to a maximum taxable base of €15,000. This means you could actually receive up to €9,000 – just not in the same year.

So why would you go for the 40% reduction instead of the 60% reduction?

In some regions, like the Valencian Community, the 60% reduction is unfortunately not available.

We recommend you check with your accountant for the rules in the region where you live.

Solar panel tax rebate in the Valencian region in Spain

The tax deductions you saw above are directly from the website of the Agencia Tributaria: Spain’s central tax agency.

But Spain is made up of 17 autonomous communities and it’s up to each of these to take official guidance and implement it themselves.

MiSolar is a a solar installer based in Javea and we service the region between Benidorm and Gandía in the Valencian Community.

Here, you can only get a reduction up to 40% of your total installation costs with a maximum taxable base of €8,000. So you can reduce your annual tax return by €2,400.

But this doesn’t necessarily mean you lose out.

The Valencian Community doesn’t ask for an energy performance certificate anymore. The IVACE-issued certificates prove you have an ‘A’ or ‘B’ energy rating. But getting a licensed engineer or architect to produce these certificates used to add hundreds of euros onto the cost of your installation.

So even if you get a 60% tax rebate in other parts of Spain your could have higher installation costs which cancel this out-

As you can see, the finer details can get confusing.

We recommend you talk to your accountant about the tax rebates available in your area and talk to your installer to understand the full installation costs and additional charges.

Can I get a reduction in my property tax (IBI) after installing solar panels?

You can get a reduction between 10-50% for between 1-5 years on your property tax (IBI) payments.

But it depends on where you live.

Let’s take some examples.

In some towns near Javea (where MiSolar is based) there’s a maximum reduction of €200 per year for 3 years. In others there’s a 50% reduction with no limit for 3 years. In others there’s a 25% reduction for up to 6 years.

So how much could you save on IBI payments in your town?

We created a list of the tax reductions available in the 41 towns where MiSolar installs solar panels in the region surrounding Javea.

These are towns such as Denia, Teulada-Moraira, Benissa, Calpe, Benidorm, Altea, Pego, Oliva and more.

You can see the IBI reductions currently available by filling out our Break Even Calculator.

What other incentives are available?

You can receive a reduction between 30-95% on the construction and installations tax in Spain.

This is locally called the Impuesto sobre Construcciones, Instalaciones, y Obras or the ICIO.

It is a tax issued by your local town hall and applied to any construction or installation work that requires a licence or permit. In Spanish this is usually called the licencia de obras.

In some cases the ICIO can be up to 4% of your total installation costs. If your installation is going to cost €10,000 then the tax can be €400.

Depending on the town where you live you can get a reduction of up to 95% on the tax and in some cases you don’t need to pay it all.

But be aware.

Some town halls demand that solar installers have a licensed engineer or architect prepare a formal project in order to receive the works licence from the town hall.

This can cost upwards of €1,500 and is typically passed onto the client.

Sometimes we have to fight with town halls to avoid inflating the costs of a solar panel installation unnecessarily – but we can only speak for ourselves.

It is worth you asking your potential solar installer about the ICIO tax and if they need to have an engineer prepare a formal ‘proyecto’.

You could end up saving yourself thousands.

What are the requirements to receive a tax rebate or property tax reduction for solar panels?

It should be obvious that you need to be a tax resident in Spain in order to receive a tax rebate.

To access the IBI reductions, you only need to be owner of the property.

But what other requirements are there?

As we mentioned above, in the Valencian region you will not need to pass your accountant anything other than you invoice or ‘factura‘ for your solar installation.

But this may not be the case in other parts of Spain.

You may need to supply an energy efficiency certificate for your property from before and after your solar panel installation. This is in order to justify that you have reduced your consumption of non-renewable energy or achieved an A or B energy efficiency rating.

We recommend you check with your accountant first.

One more thing.

Many homeowners in Spain do not realise they need to legalise their solar installation with the town hall. Without this, you will not be eligible for any tax rebates or property tax reductions, and you will not be able to change your electricity contracts in order access favourable deals such as the virtual battery.

You must have a certified electrician legalise your system.

At MiSolar, we have an in-house certified electricians at our office in Javea.

But it’s not the case for every solar installer in Spain and we’ve heard from a number of homeowners whose system was never registered – and so they missed out on the solar grants while they were still available.

It can be tempting to avoid legalising your system and so avoid paying municipal taxes, additional charges and paperwork.

But you will lose out in the long run.

The best solution is to find a trusted solar installer who is experienced in dealing with the local town hall and can fully legalise your system without any hassle.

How can I find out how much I could receive in tax rebates and property tax reductions for solar panels in Spain?

We’ve created an online solar calculator which estimates your maximum tax rebate and property tax reductions for the exact town you live in.

But there’s one catch.

We’ve only included information for the 41 towns in the region where we install solar panels – between Benidorm to Gandía in the Valencian region in Spain.

If this is you, feel free to use our solar calculator for an instant analysis.

Please note that the calculator’s results are estimations.

For a full idea of costs and tax rebates we recommend to you get a quote and then call your accountant.