Under the title ” Photovoltaic energy, driving industrialization , “ the Spanish Photovoltaic Union has presented its Annual Report, which, in collaboration with the University of Castilla-La Mancha, offers an in-depth analysis of the situation of the photovoltaic industry in Spain and internationally.
Spain, with 7,221 MW of new installed capacity and a cumulative total of 40,294 MW, remained among the top 10 global markets at the end of last year , in a year in which photovoltaic energy consolidated its position as the renewable technology with the greatest new installed capacity in the world , with 602 GWp of new global capacity and reaching a cumulative total of 2,246 GWp worldwide.
Photovoltaics in Spain: Slow progress that requires boosting measures
During 2024, 6,039 MW of new ground-based photovoltaic capacity was added in Spain, reaching a cumulative total of 32,157 MW.
However, the self-consumption sector has faced difficulties, recording a 31% drop in installed capacity compared to 2023. The 1,182 MW installed last year brings the cumulative total of photovoltaic self-consumption to 8,137 MW. This reality serves as a reminder that, although we have made significant progress, we are still far from the 19 GW self-consumption target established by the PNIEB for 2030.
One of the most disruptive elements of the electricity system is Energy Communities , which typically begin with collective self-consumption and allow for active and effective citizen participation in the electricity sector. Last year, we saw their number continue to grow: 659 active projects were identified in 2024, compared to an estimated 500 the previous year. This progress, although positive, remains slow and demonstrates that their development still requires boosting measures, such as a specific national regulatory framework, for which UNEF has presented concrete proposals.
In storage , Spain has accumulated 2,205 MWh of behind-the-meter capacity since 2022, although the pace of installation fell by 34% in 2024 compared to the previous year. There are already more than 9.5 GW of storage with access permits, but regulation needs to be accelerated for its large-scale deployment.
More than 10.694 billion euros in GDP, 146,000 jobs, and more than 520 million euros in R&D&I.
In economic terms, photovoltaics generated a contribution to national GDP of €10.694 billion in 2024 , representing around 0.7% of Spanish GDP.
The sector also continues to contribute significantly to Spain’s trade balance. With a strong export industry in segments such as inverters, solar trackers, and structures, the Spanish photovoltaic industry exported €3.4 billion last year . Although this represents a slight decrease of 5.7%, it is still very significant.
In terms of employment, by the end of 2024, the photovoltaic sector had a total of 146,764 jobs in Spain , including direct, indirect, and induced jobs.
Companies in the photovoltaic sector allocated €521 million to R&D&I , representing an innovation intensity of 3.78% of their revenue. Although the total percentage of R&D&I expenditure has decreased slightly compared to 2023, it is still more than double the average for Spanish companies (1.61%) and well above the national industry average (1.36%). These figures demonstrate the sector’s significant driving force on the Spanish economic and industrial fabric as a whole.
A strategic sector in danger of stagnation
“ Although installed ground-based capacity points to a possible record in 2025, the numbers hide a complex reality for 2026 ,” comments José Donoso, director general of UNEF.
One of the most pressing problems is the increase in zero hours and the technical and economic impacts. By September 2025 alone, 693 zero hours have been accumulated, already equaling the total from the previous year. ” This phenomenon, coupled with low and unstable captured prices, highlights the urgency of introducing reforms to the electricity pricing system in order to make progress toward meeting the 20230 targets, ” adds Donoso.
“ To reverse this situation, electrifying demand must become a national priority. Grid planning for 2030 shows that 75 GW of connection points have already been granted, compared to a current average demand of just 25 GW. Calling for demand-side tenders will help identify viable projects, unlock investment, and drive associated industrialization .”
The second major challenge is the deployment of storage , which is key to stabilizing prices and providing stability to the electricity system. ” Hybridization with batteries is emerging as an essential solution, but its progress depends on regulatory changes: granting these facilities legal status, solving power aggregation problems, and simplifying environmental impact studies when they are located in already assessed plants ,” he adds.
At the same time, the decline in bilateral contracts (PPAs) as a source of financing requires the relaunch of renewable energy auctions , ” which must offer certainty to investors and integrate storage .”
The social integration of projects is another major challenge for the development of technology. “ It remains a fundamental element in defining our future ,” says Donoso. “ Often, specific conflicts are emphasized and the significant benefits that the development of this technology is having on the socioeconomic development of territories and the rural world are overlooked, such as population growth, job creation, and the significant increase in municipal revenues that improve the quality of life of the inhabitants of these municipalities . ”
Regarding self-consumption , UNEF calls for the urgent implementation of specific measures to eliminate identified barriers and provide incentives.
“ Given the current situation, achieving the 19 GW self-consumption target set by the PNIEB is a pipe dream. The government has been working these months on a Royal Decree on self-consumption, which has already announced changes that we applaud, such as expanding the permitted distances from 2 to 5 kilometers, including the role of a self-consumption manager, and the possibility of sharing surpluses and allowing a self-consumer to benefit from more than one self-consumption option ,” Donoso points out.
“ But we must go further. The exemption from requesting an access and connection permit should be based not on installed capacity, but on what will actually be injected into the grid. We also need tax relief, as in other countries: exemption or reduction in VAT and deductions on corporate income tax for companies and personal income tax for citizens. The autonomous communities that have not yet done so should extend the exemption from administrative construction authorization to facilities under 500 kilowatts. And connections must be expedited with incentives and penalties: it is unacceptable for industrial self-consumption projects to take months or even more than a year ,” emphasizes the UNEF CEO.
“ The “ zero electricity ” experienced in April 2025 has had disruptive effects in the short term, with more spills and uncertainty, but it also opens up medium-term opportunities such as the participation of renewables in the voltage control market or the development of grid forming .”
“The year 2025 is coming to an end without having adequately addressed the challenges we faced at the beginning. We’ll have to do all our homework in 2026. The future of our sector and the realization of the economic opportunity it can offer our country depend on it ,” Donoso concluded during the presentation of the sector overview.
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