In recent years, Spain has experienced a significant boom in the solar energy sector, becoming a benchmark in Europe. This growth has led to a growing interest on the part of individuals and companies in the installation of photovoltaic projects to take advantage of the potential of solar energy. However, embarking on a solar PV project requires more than simply installing panels on a roof.
The legislation on photovoltaic projects in Spain is rigorous, and understanding the photovoltaic regulations is essential to carry out any project of this type successfully and in accordance with the law. In this article, from the law firm Ignacio García Taboada, I will clear up your doubts about renewable energy legislation in Spain and offer you a legal guide to make your solar energy project a success.
Current overview of the photovoltaic sector
The photovoltaic landscape in Spain is very positive. The country has a large number of hours of sunshine per year, making it an ideal location for solar power generation. In 2021, installed PV capacity in Spain reached 18,994 megawatts (MW), a growth of 29.9% compared to the previous year.
This growth is due to a number of factors, among which the following stand out:
- Public policies to support renewable energies, which have made Spain a European leader in this sector.
- The reduction in the costs of photovoltaic technology, which has made it more competitive.
- Increased awareness of the need to reduce greenhouse gas emissions.
In 2023, the Spanish government has approved a new National Integrated Energy and Climate Plan (PNIEC), which sets a target of reaching 39.2% of renewable energy in the electricity mix by 2030. To this end, a total of 40,000 MW of new photovoltaic capacity is planned to be installed.
In the area of self-consumption, Spain is also experiencing significant growth. In 2021, 40,000 PV self-consumption installations were installed, 50 % more than in 2020.
The upward trend in photovoltaic energy in Spain is unstoppable. The country is well positioned to become one of the world leaders in this sector in the coming years.
Some specific and interesting data on the photovoltaic landscape in Spain:
- The autonomous communities with the highest installed PV capacity are Castilla-La Mancha, Andalusia, Extremadura and Region of Murcia.
- The photovoltaic sector employs more than 50,000 people in Spain.
- Photovoltaic energy has contributed to avoiding the emission of more than 10 million tonnes of CO2 in Spain.
Photovoltaic energy benefits in Spain
As you can see, photovoltaic solar energy has gained popularity in Spain for a number of key reasons. Beyond being a clean energy source, its benefits extend to both the environment and the economy.
Environmental impact of photovoltaic projects
Photovoltaic solar energy stands out mainly because it is a renewable energy source that does not produce polluting emissions during its operation. Unlike fossil fuels, solar energy does not release CO2 or other greenhouse gases.
Likewise, photovoltaic solar energy in Spain contributes to the fulfilment of the environmental objectives proposed at European and international level. By committing to photovoltaic projects, Spain is making progress in its commitment to the Paris Agreement and the sustainability goals set out in the 2030 Agenda.
Economic advantages of solar energy
From an economic point of view, photovoltaic solar energy offers a range of benefits that cannot be overlooked. With the recent self-consumption regulations and changes to the Spanish PV law, the path has been made even easier for individuals and companies wishing to invest in this technology.
To begin with, installing a PV project can mean significant savings on electricity bills. Once the initial investment in the installation has been made, maintenance costs are relatively low and the return on investment is reflected in a few years, especially with the constant rise in electricity prices.
In addition, thanks to the new self-consumption regulations, owners of photovoltaic installations have the possibility to sell the surplus energy generated to the grid, thus earning additional income.
Finally, the promotion of photovoltaic projects has generated a growing demand for professionals in the photovoltaic sector, creating jobs and encouraging specialised training, which benefits both the individual and the national economy.
Understanding the legality of photovoltaics in Spain : Key solar energy laws and regulations
The law establishes a series of incentives for the installation of photovoltaic systems, both for self-consumption and for the production of solar energy for the grid:
- Installation subsidies: The Spanish government offers aid for the installation of photovoltaic systems, both for self-consumption and for the production of solar energy for the grid. This aid can cover up to 50 % of the cost of the installation.
- The surplus scheme: Users who produce solar energy for the grid can sell the surplus to the electricity company. The selling price of the surplus is established on the basis of the electricity market price.
- Exemption from value added tax (VAT): Self-consumption photovoltaic installations with a capacity of less than 10 kW are exempt from VAT.
The requirements for installing a photovoltaic system in Spain are as follows:
- Obtaining administrative authorisation: In general, it is necessary to obtain administrative authorisation to install a photovoltaic system. The authorisation must be requested from the local council of the municipality where the system is to be installed.
- Comply with technical regulations: Photovoltaic systems must comply with current technical regulations. These regulations establish the safety, efficiency and quality requirements for PV systems.
Spanish government incentives make the installation of PV systems an attractive investment for households and businesses.
Requirements for the installation of photovoltaic projects in Spain
Generally speaking, the photovoltaic installation in Spain must meet these conditions:
Initial assessment and project feasibility
Before starting the installation process of a PV project, it is important to carry out an initial assessment to determine the feasibility of the project. In this assessment, the following aspects should be taken into account:
- The availability of solar radiation in the area.
- The characteristics of the land where the project is to be installed.
- The energy needs of the users who will benefit from the project.
- The available incentives and subsidies.
Permit application process
The permit application process can vary depending on the power of the project and the location. In general, the permits required to install a photovoltaic project are as follows:
- Administrative authorisation: It is necessary to obtain an administrative authorisation from the City Council of the municipality where the project is to be installed.
- Building permit: It is necessary to obtain a building permit, also from the same local council.
- Connection to the electricity grid: It is necessary to apply for connection to the electricity company’s grid.
Technical requirements for photovoltaic projects
Photovoltaic projects must comply with a series of technical requirements to guarantee their safety and efficiency. The technical requirements are set out in Royal Decree 486/2013 of 1 June, which establishes the technical and administrative conditions for the connection of electricity production facilities to the transmission and distribution grid.
The most important technical requirements include the following:
- The installation must be designed and executed by a qualified installer.
- The components of the PV system must comply with the applicable technical standards.
- The PV system must be protected against fire, overvoltage and other hazards.
Legal requirements and permits for installation
In addition to the permits and authorisations mentioned above, PV projects may be subject to other legal requirements, such as the Environmental Assessment Act, the Natural Heritage and Biodiversity Act or the Industry Act.
In general, the legal requirements for PV projects are set out in current regulations.
Grid connection and feed-in tariffs
Photovoltaic projects can be connected to the electricity grid in two ways: self-consumption or production for the grid. Solar energy tariffs vary depending on the type of connection.
- Connection for self-consumption: In this case, the energy generated by the photovoltaic project is consumed at the production site, and the surplus is fed into the electricity grid. Tariff: The company pays the producer for the surplus injected into the grid, but at a price lower than the price of electricity on the wholesale market. The price of surplus on the wholesale market is calculated on the basis of supply and demand.
- Connection for grid production: In this case, the energy generated by the PV project is fed directly into the grid, and the utility pays the producer for the energy supplied. Tariff: The electricity company pays the producer for the energy supplied, plus a profit margin. This margin is set according to the production costs of the energy.
Incentives and subsidies for photovoltaic projects
In Spain, there are a series of incentives and subsidies for the photovoltaic sector, both for self-consumption and production for the grid. However, depending on the autonomous communities, these may vary. In summary, self-consumption installations with a capacity of less than 10 kW can benefit from a subsidy of up to 50% of the cost of the installation and are exempt from VAT. Users who produce solar energy for the grid can sell the surplus to the electricity company at a price based on the electricity market price.
10 Common mistakes to avoid when installing photovoltaic projects
Very briefly, I will tell you which mistakes are the most common when you want to install a photovoltaic station:
Incorrect choice of project location.
A location with little solar exposure can reduce energy production.
Underestimation of initial installation costs.
The installation costs of a PV system can be considerable and must be accurately assessed.
Failure to fully understand local regulations and permits
Installation of a PV system requires permits and licences that must be known and complied with.
Lack of proper maintenance and monitoring of the system
The PV system must be regularly maintained and monitored to ensure optimal performance.
Failure to take advantage of available incentives and subsidies.
Available incentives and subsidies can significantly reduce installation costs.
Selecting low-quality equipment to save upfront costs
Low-quality equipment can have a shorter lifetime and lower performance, increasing the long-term cost.
Ignoring building or site energy efficiency
The energy efficiency of the building or installation site can affect the performance of the PV system.
Failure to conduct a proper technical and financial feasibility study.
A feasibility study helps to ensure that the project is viable and cost-effective.
Lack of a contingency plan for potential technical problems.
A contingency plan helps to minimise the impact of potential technical problems.
Failure to hire qualified professionals for the installation.
The installation of a photovoltaic system must be carried out by qualified professionals to ensure its safety and operation.
Conclusions
Navigating the web of photovoltaic regulations in Spain may seem complex, but it doesn’t have to be with the right guidance.
If you are considering investing in solar energy or are simply looking for more information on the subject, do not hesitate to contact the law firm of Ignacio García Taboada. With our solid experience in the sector we will guide you every step of the way, ensuring that your project is a real success. Fill in the form below to arrange a consultation.
