Solar Panels Andalusia: Government Grants & Are They Worth It?

Andalusia is one of the sunniest regions of Europe, so it makes sense that solar panels could be a good investment. But with the bureaucracy that has often surrounded solar panels in Spain, it hasn’t always been clear that getting solar panels is worth it.

Luckily, it has got much easier to get solar panels, and the falling costs along with the rising costs of grid electricty make it worthwhile for most homeowners.

For a typical house in Andalusia, a 4kW solar system would cover most of your electricity needs, and cost around €5,500 to install, but you could claim a €2,400 government grant. With today’s electric costs, that would pay for itself in 2-4 years!

That’s a far better return on investment than buying solar panels in most other places in the world, and better in most cases than any other investment in your home.

This is a chart of how much electricty a 4kW solar system in Andalusia will typically produce throughout the year. As you can see, whilst it does increase in the summer, it is actually quite consistent through the seasons.

Solar Panel Grants in Andalusia in 2022 to 2023

Spain as a whole has allocated a large amount of funds to transitioning to renewable energy, and to solar specifically. There are grants available to indivduals, which are managed by each of the regional autonmous communities.

From December 2021, the Andalucian government has allocated66.3 million euros in incentives for self-consumption installations with solar photovoltaic and wind energy, 14.4 million for storage, and 16.5 million euros for air conditioning and domestic hot water equipment with solar thermal energy, biomass , geothermal, hydrothermal and aerothermal“.

How Long Are These Grants Available For?

The current set of grants is available until December 2023, or until the funds are used up.

How Much Funding Is Available?

For domestic installs, the aid is calculated based on the amount of solar panels you’re installing, as well as a seperate amount based on the amount of battery storage (if any).

This amount ranges between €300 and €600 per kWp installed (peak electrical output in killowatts), depending on the type of installation.

For battery storage it varies between €140 and €490 kWp.

If you work with your local community to install a shared system, you can claim a higher rate of funding, up to €710 per kWp installed.

The Andalusian Energy Agency gives this example:

The average household in which four people live with an estimated annual consumption of around 6,000 kWh installs a 4 kW photovoltaic solar system with an investment of €5,500. The incentive that could apply is €2,400 (€600 per power unit in installations of up to 10 kWp).

Agencia Andaluza de la Energia

Is There a Limit to The Size of System I Can Get Funding For?

The maximum power that you can claim incentives for under this programme is 5,000 kW, which is so huge that effectively there’s no limit for residential.

Who Can Qualify?

You can apply as an individual, as a self employed person, or as a company.

To apply for any of the grants, you must be a tax resident in Spain.

If you’re applying as a self employed person (‘autonomo’) then you must be registered in the Census of Entrepreneurs, Professionals and Withholders of the State Tax Administration Agency.

If using a installation company, they must be accredited and listed on the Institute for Energy Diversification and Saving website.

The full list of requirements is here.

How to Apply

You can apply via the Andalusian Energy Agency site, or your chosen solar panel installation company can do this on your behalf.

If you’re hoping to have a company apply on your behalf, make sure they are on the AAE’s list of approved companies.

The funds are released by the government once the work is completed, and the solar panels are switched on. Although you may find that your installation company is happy to claim this and charge an upfront price as if the grant has already been awarded.

Once the install is done, they submit a report to the government including photographs, a statement that it complies with all the relevant regulations, and that it is performing as it should.

Conclusion

Solar panels are worth it in Andalusia. In fact, Andalusia is one of the best places in the world to buy solar panels.

  • Payback time (with the current grants): 2-4 years
  • Savings: around €1,000 a year, increasing as electric costs go up
  • Cost: around €3,100 for a typical system
  • How to qualify: be a tax resident, apply before the end of 2023 via a government approved installer

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