The Adoption of Solar Self-Consumption in Spain Faces Significant Challenges

Despite technological advancements and economic incentives aimed at reaching the 19 GW target outlined in the updated National Integrated Energy and Climate Plan (PNIEC), solar self-consumption adoption in Spain continues to encounter hurdles.

As of today, only 5% of consumers have installed solar panels, according to the latest report by SotySolar. This is primarily due to perceived installation complexities, high initial costs, and fluctuating electricity prices.

The report also notes that 45% of apartment residents are unaware of whether they can install solar energy, even though 87% express interest in doing so.

In an interview with Energía Estratégica España, Montserrat Lavilla, SotySolar’s Director of Marketing, Communication, and Institutional Relations, stated that public support measures, such as tax deductions and subsidies, have been instrumental in boosting interest.

However, bureaucratic barriers and significant lack of awareness, especially among homeowner associations, persist.

Why Has Only 5% of the Population Adopted Solar Energy?

While the benefits of solar energy are clear, recent electricity price decreases have slowed the adoption of green energy.

“Our experience shows that electricity prices are highly volatile. Consumers and businesses, when analyzing their options, often realize they do not want to be at the mercy of these fluctuations and the uncertainty surrounding future bills. This is one of the key factors driving them to switch to solar,” said Lavilla.

The rise of solar energy is undeniable, but its path to mass adoption is obstructed by financial, regulatory, and perception barriers. Despite increasing information availability, cost reductions, and improved government incentives, challenges remain that hinder faster growth.

Is There Optimism About Meeting the 19 GW Self-Consumption Goal by 2030?

“There is undoubtedly much work to be done by both businesses and governments in terms of providing incentives, facilitating processes, and raising awareness about the necessity of clean energy,” said Lavilla.

Public Policies Improving Consumer Interest

Economic aids, subsidies, and other fiscal incentives are key for homeowners considering renewable energy installations.

Currently, incentives for photovoltaic solar panel installations include:

• Income tax deductions of up to 60% for installations.
• Property tax reductions (IBI) of up to 50%.
• Subsidies in some regions.

SotySolar compiles a national map of active subsidies quarterly, covering solar photovoltaic systems, aerothermal systems, and EV chargers, to guide consumers.

Addressing the Perception of Complexity in Apartment Installations

“There is still a lack of knowledge about solar panel installations for apartment buildings,” Lavilla explained. SotySolar’s Renewable Energy Study indicates that nearly half (45.4%) of Spaniards living in apartments are unaware of whether they can install alternative energy systems, despite 87.6% expressing interest.

Shared self-consumption installations are particularly profitable, often more so than individual installations. Public subsidies allow these setups to be amortized within three years, while their lifespan extends up to 25 years.

“Energy efficiency improvements and reduced electricity bills are two significant advantages of shared self-consumption. At SotySolar, we actively engage with homeowner associations to explain how collective self-consumption works and its benefits. This has led to increased interest from apartment blocks in installing solar panels,” Lavilla added.

Mitigating High Initial Costs for Homeowners

Aware of the entry barrier posed by initial investments, SotySolar offers flexible financing plans, in addition to existing subsidies and tax deductions.

The Solar Subscription model provides financing without intermediaries for up to 20 years, starting at a fixed monthly fee of €33. This model is compatible with government aid, allowing consumers to save from day one without a large upfront expense.

Simplifying Bureaucracy for Solar Panel Installations

“Bureaucracy can be simplified significantly,” Lavilla emphasized.

• For installation companies, offering end-to-end services, from advisory to managing paperwork, is essential. Digital tools can enhance efficiency and cost transparency. SotySolar, for example, manages all administrative tasks, providing a turnkey solution that spares customers from the tedious aspects of the process.
• For citizens, seeking information about solar benefits, demanding process transparency, and reporting irregularities to the authorities are vital steps.

Streamlining these processes is crucial to accelerating the transition to renewable energy and meeting sustainability targets.