Spain is one of the best countries in Europe for solar energy. With an average of 2,500–3,000 sun hours per year, a well-sized photovoltaic installation can cover 50–80% of a typical household’s electricity consumption. Here is what you need to know before investing.

How much does a residential installation cost?

A typical household installation (3–5 kWp) costs between €6,000 and €10,000 before subsidies. After applying available grants and tax deductions, the effective cost can drop to €4,000–6,000.

Available subsidies in 2024

Next Generation EU funds These grants, managed at regional level, cover up to 40% of the installation cost for residential properties. Each region has its own programme with different amounts and conditions.

Income tax deduction (IRPF) Homeowners can deduct 20% of the installation cost from their annual income tax return, with a maximum base of €7,500 per year.

Regional and municipal subsidies Several Spanish regions (Madrid, Catalonia, Andalusia, Valencia) have additional subsidy programmes that can be combined with the national grants.

With all subsidies combined, the net cost is typically reduced by 40–55%.

Payback period

For a typical 4 kWp installation:

Annual generation: approximately 5,500–6,000 kWh
Annual saving: €700–900 (at current electricity prices)
Payback period: 5–7 years
System lifespan: 25–30 years

This means 18–23 years of near-free electricity after the initial investment is recovered.

Surplus energy (excedentes)

Any electricity your panels generate that you do not consume can be fed back into the grid. You receive a credit on your bill for this surplus — currently around €0.05–0.12 per kWh depending on your supplier’s offer.

How to choose a good installer

Look for installers certified by the Ministry of Industry (Registro de Instaladores). Get at least three quotes and check that the proposal includes:

A solar resource study specific to your location
Shadow analysis of your roof
Production simulation by month
Full documentation for grid connection and subsidy application

At Gestoria Soluzion we manage the entire process — from study to installation to subsidy paperwork — so you only need to say yes.