What Types of Subsidies for Solar Panels Are Available?
There are several types of subsidies available for users installing solar panels.
These are as follows:
- Next Generation Subsidies
- Municipal discounts on IBI (Property Tax)
- Income tax deductions
Next Generation Subsidies
These subsidies were active during the period 2021-2023 and are not available in 2024. However, they may be reactivated in the future, such as in 2025 or 2026, and are part of the European Union Next Generation Plan, managed at the national level through IDAE by the Ministry of Ecological Transition. In Catalonia, the responsible entity is ICAEN.
Initially, a first allocation of 600 million euros was provided, which was spent, and the aid was increased by an additional 550 million euros.
It is important to note that these subsidies have two distinct phases: the application phase and the justification phase. In the first phase, all actions taken in the installation are outlined, and the corresponding budgets are submitted. Once the responsible body reviews the file and grants the subsidy, the justification phase begins. In this second phase, all amounts related to the installation must be justified, always in accordance with the budget presented in the application, and technical documentation and legalization of the installation must be submitted.
It is important to highlight that there may be several months, or even over a year, between the two phases.
Municipal Discounts on IBI
IBI is a tax paid to each municipality or city based on the property and is a tax that goes directly to the City Council. Therefore, it is up to each municipality to apply the relevant reduction.
Some municipalities offer a 50% reduction in IBI, while others only offer 10%. Over time, municipalities are starting to eliminate these discounts as they need the additional revenue from IBI for their budgets.
Income Tax Deductions
Royal Decree Law 19/202 included updates to the IRPF declaration regarding investments in sustainability and energy efficiency. To qualify, you must demonstrate a minimum reduction of 30% in primary non-renewable energy consumption.
To justify this 30% reduction, a pre-installation energy certificate, a post-installation energy certificate, and a summary report to facilitate the manager’s tasks must be provided.
The income tax deduction is an aid that remains in effect in 2024 and provides real assistance for the installation of solar panels.
Need subsidies for solar panels?
Frequently Asked Questions about Solar Panel Subsidies
Who can apply for Next Generation Aid?
Subsidies are available to both the residential and industrial sectors, as well as the third sector. They cover the installation of solar panels and batteries, and also the installation of renewable energy-based climate control systems like aerothermal energy.
The maximum subsidy percentage ranges from 30% to 40% for individuals and from 45% to 60% for companies. Therefore, this can reduce the cost of installation by almost half.
How are subsidies processed?
Subsidies are processed electronically using the Canal Empresa provided by the Generalitat.
You need to attach the applicant’s documentation, fill out an application, attach the detailed budget of the installation, and finally attach the invoices and payment bank statements.
What is the income tax deduction available?
20% Deduction – For single-family homes that have reduced non-renewable primary energy consumption by only 7%. The maximum annual base cannot exceed €5000.
40% Deduction – For single-family homes that have reduced non-renewable primary energy consumption by 30%. The maximum base cannot exceed €7000.
60% Deduction – For multi-family homes that have achieved a 30% reduction in non-renewable primary energy consumption or have an energy classification of A or B.