Installing solar panels not only allows you to save on your electricity bill, in many municipalities in Spain, you can also reduce your taxes thanks to a bonus that rewards those who bet on renewable energies. However, this tax advantage is not applied equally in all city councils. Let us see how to request the tax reduction for solar panels in full.
Does every photovoltaic installation have a tax bonus?
Not all photovoltaic installations can apply for the tax bonus. Each city council regulates this aid independently, and although most offer some type of incentive, there is no state rule that forces municipalities to grant it. This means that:
- Some city councils bonus between 30% and 50% of the tax. It is true that in some cities they have 10 and 15% but they are very few.
- Some only give a bonus if the installation reaches a certain minimum power or if the use is going to be residential.
- Others require it to be connected to self consumption. It may seem logical to you but keep in mind that someone can also produce that green energy to sell it.
- And there are locations where there is no type of discount.
In addition, they will generally always have a fairly limited duration, they are usually applied for 2, 3, 4, 5 years… it depends a lot on the municipality. Therefore, before starting the tax bonus request for solar panels, it is best to check the tax ordinance of your City Council or consult directly in the tax department.
Requirements for the tax bonus request for solar panels
The requirements that you will always have to meet to make the tax reduction request for solar panels are these 6.
1. The installation must be legalized
To request the tax bonus for solar panels it is essential that:
- The panels are installed correctly.
- The installation has an electrical bulletin.
- It is registered in the autonomous community (industry).
- It has the final work certification if applicable.
2. It must be for self consumption
In almost all municipalities, the bonus is only granted if the photovoltaic installation is destined for self consumption, not for production for sale to the grid.
3. The installation must be in the property requesting the bonus
You cannot ask for the tax bonus in one property and have the panels installed in a different one.
4. The installation must be new or recent
Many city councils only admit the request if the installation has been carried out within the current year or during the previous 12 months.
5. Meet the minimum power requirements
Some city councils ask for a specific power, for example that it has a minimum of 1 kWp (other times 3 kWp) or that it covers a percentage of the annual consumption.
6. Not having debts with the City Council
It seems obvious, but it is a typical requirement, you must be up to date with municipal taxes to opt for bonuses.
Steps to request the tax reduction for solar panels
Of course they can vary a little from one city council to another, but these are the 6 steps to follow to request the tax reduction for solar panels:
- Review the tax ordinance, bonuses for renewable energies and specific conditions for self consumption. This way you will know how much you can save, for how many years and what documents they will ask you for exactly.
- Gather all the technical documentation. Here you will need the Electrical Certificate, the technical or project report, the installation invoices and the final work certificate if applicable. Usually the installation company gives you everything.
- Fill out the application form. Almost all City Councils have a specific form, which can be called Tax reduction for solar panels, Bonus for renewable energies in properties or Request for tax bonus for solar use installations. You can present it at the electronic headquarters or in person at the registry of a municipal office.
- Submit the documentation within the deadline. This is very important, some city councils may require you to submit the application before December 31, do it during the first quarter or make the request right after the installation. If you miss the deadline, you will not be able to benefit until the following year or even lose the bonus.
- Wait for the resolution, since they will have to verify that the installation exists, that it meets the requirements and that the documentation is correct. The resolution period is usually 1 to 3 months.
- The bonus is applied directly to the tax receipt. Once approved, you will see the discount on your next tax receipt. It is not usually applied retroactively with some exceptions.
Necessary documentation for the tax bonus for solar panels
Basically, to request the tax bonus for solar panels, you will need to have the electrical certificate or bulletin, issued by an authorized installer, the technical report or installation project signed by a technician, detailed invoices of the installation including materials and labor and the proof of payment of the invoices (transfers, receipts, vouchers…).
You will also need the Installation Certificate registered in Industry (each Autonomous Community has its own registry) and the certificate of being up to date with the city council, although most of the time they verify it automatically. Of course they will also ask for the owner ID and, sometimes, they ask for photos of the before and after of the installation.
Locations in Spain that give you the tax bonus for solar panels
Although every year municipalities update their ordinances, currently most Spanish cities offer some type of bonus.
Keep in mind that these data are samples and that each municipality may have minimum power limits, requirements for a minimum percentage of self consumption, restrictions on the type or use of the property and specific application deadlines. In addition, approximately 64% of Spanish municipalities with more than 10000 inhabitants offer some tax bonus for photovoltaic self consumption installations. Here are some of the main cities where you can request the tax bonus for solar panels.
| City | % Tax Bonus | Duration | Notes / Conditions |
|---|---|---|---|
| Seville | 50% | 3 years | Only self consumption homes. |
| Malaga | 15% | 3 years | With annual limit according to cost. |
| Cordoba | 50% | 10 years | Only habitual residence. |
| Granada | 50% | 1 year | Short duration bonus. |
| Zaragoza | 50% | 3 years | Annual maximum according to installation cost. |
| Oviedo | 50% | 3 years | Must cover part of annual consumption. |
| Gijon | 50% | 5 years | Requires minimum power per area. |
| Palma de Mallorca | 50% | 7 years | Applicable to homes and businesses. |
| Las Palmas de Gran Canaria | 50% | 3 years | Includes industrial uses with limits. |
| Santa Cruz de Tenerife | 50% | 5 years | Only residential self consumption. |
| Valladolid | 50% | 3 years | For single family homes. |
| Madrid | 50% | 5 years | Bonus with annual limit. |
| Valencia | 50% | 1 year | Only for habitual homes. |
| Alicante | 50% | 3 years | Maximum €/year according to ordinance. |
| Vitoria Gasteiz | 45% | 4 years | Residential use; other uses lower percentage. |
Requesting the tax reduction for solar panels is a procedure that is very worthwhile, it can mean hundreds of euros of savings over several years. Although each city council works differently, the requirements are usually similar and the process is simpler than it seems if you follow the right steps.
