Investing in renewables in Spain is, now more than ever, a smart decision both economically and environmentally. Tax deductions make these clean technologies a real opportunity to save money, increase property value, and contribute to global sustainability.
On the path toward decarbonization and energy independence, the Government of Spain has launched a series of tax incentives designed to reward those who choose to invest in renewable energy. These measures, mainly applied through deductions in the IRPF (Personal Income Tax), aim to accelerate the energy transition, reduce household energy bills, and support a more sustainable consumption model.
Deductible actions include the installation of solar panels, aerothermal systems, geothermal energy, and charging points for electric vehicles—as long as they contribute to a real and measurable improvement in energy efficiency.
The installation of solar panels in private homes has become one of the main pillars of self-consumption in Spain. To encourage this practice, the government allows IRPF deductions ranging from 20% to 60% of the installation cost, depending on the level of energy efficiency improvement achieved:
These deductions apply to a maximum base of between €5,000 and €7,500 per year. In the case of the 60% benefit, it can be extended to a cumulative maximum of €15,000 spread across several tax years.
It is essential to have an Energy Efficiency Certificate (EEC) both before and after the work to certify the improvement. All actions must be completed before December 31, 2025 (in some cases by 2024, depending on the deduction).
The government also supports the adoption of thermal renewable energy technologies such as aerothermal, geothermal, or biomass—commonly used for heating and domestic hot water.
Investments in these systems may qualify for a 40% IRPF deduction if they achieve a 30% reduction in energy consumption or an improvement in the building's energy rating. These technologies, which replace traditional gas or oil boilers, significantly reduce CO₂ emissions and long-term energy consumption.
As part of the ecological transition model, the government also rewards the purchase of new electric vehicles with a 15% deduction of the purchase cost, applicable up to a base of €20,000. The vehicle must be listed in the IDAE (Institute for Energy Diversification and Saving) catalog and must not be used for professional purposes.In addition, if a home charging station is installed, an additional tax deduction may be applied, although it is subject to certain technical and economic requirements.
In addition, if a home charging station is installed, an additional tax deduction may be applied, although it is subject to certain technical and economic requirements.
These IRPF deductions are compatible with regional or municipal aid, as well as subsidies from the MOVES III program or European Next Generation funds, provided the amount received is subtracted from the deductible base.
Sources: El Periódico de la Energía