Grants and Subsidies 2026 for Solar Panels · IRPF, FACTOR 2026 and CAE

Maximise your savings by combining the available support: IRPF deductions of up to 60 % (RDL 7/2026), the new FACTOR 2026 call in the Balearic Islands, IBI (property tax) rebates and the CAE system for heat pumps. For solar installations with battery in the Balearic Islands, combining IRPF and FACTOR 2026 can recover up to 75 % of the investment*.
*Subject to funding availability and approval by the Government of the Balearic Islands.

How to drastically reduce the cost of your installation

Deduction of 60% of the investment in personal income tax

Royal Decree-Law 7/2026 expands tax deductions for homes. There are three different deductions that can be applied depending on the action: one for renewable self-consumption, another for energy efficiency (refurbishment), and a third independent one for the electric vehicle charger.

1. Deduction for renewable self-consumption — Valid until 31/12/2026

Flat with solar panels: Deduction of 10 % on a maximum base of €5,000 (up to €500 in savings).
Single-family home with solar panels: Deduction of 20 % on a maximum base of €5,000 (up to €1,000 in savings).

2. Deduction for energy efficiency (refurbishment) — Valid until 31/12/2027

Applies if the works reduce at least 30 % of non-renewable primary energy consumption (or achieve an A or B energy rating). Requires an Energy Efficiency Certificate (EEC) after the works.

Flat: Deduction of 40 % on a maximum annual base of €7,500 (up to €3,000 in savings).
Single-family home: Deduction of 60 % on a maximum accumulated base of €15,000 (up to €9,000 in savings, spread over up to 4 years).

3. Deduction for electric vehicle charger — Independent deduction. Valid until 31/12/2026

15 % on a maximum base of €4,000 (up to €600 in savings). Adds to any of the above.

Tip to reach the maximum deduction: Installing only solar panels places you in the self-consumption deduction (10 % for flats, 20 % for single-family homes). To access the 40 % or 60 % via energy refurbishment you need to reduce non-renewable primary energy consumption by at least 30 %, certified with the Energy Efficiency Certificate (EEC). The most common route is to combine Photovoltaics + Heat pumps (or 2 heat pumps); if you already have fully electric heating, installing only photovoltaics may be enough. Additionally, adding an electric vehicle charger always provides an extra 15 % independent deduction.

If you're from the Balearic Islands · Combine IRPF with FACTOR 2026: If your installation includes a battery, you can add the IRPF deduction to the new regional programme FACTOR 2026. In these cases, up to 75 % of the investment can be recovered*.
*Subject to FACTOR 2026 funding availability and to the resolution of the Govern de les Illes Balears.

FACTOR 2026 Grants in the Balearic Islands

Call open since 9 July 2026. Grants are allocated on a strict first-come, first-served basis, until the budget allocation runs out.

FACTOR 2026 is the new grant call from the Government of the Balearic Islands (Govern de les Illes Balears), within the framework of the Insularity Factor, aimed at supporting investment in renewable energy, electrical storage and charging infrastructure in the Balearic Islands.

What it covers:

Photovoltaic installations for self-consumption (residential and industrial).
Electrical storage systems (batteries).
Charging infrastructure for electric vehicles.

Who can apply:

Individuals (natural persons).
Businesses, subject to the de minimis regime.
Public administrations.

How it works:

Online submission through the Electronic Headquarters of the Balearic Islands Government.
Allocation on a strict first-come, first-served basis, until the budget allocation runs out.
Compatible with the IRPF deduction (RDL 7/2026) and with the CAE system.

Frederic Andreu, managing partner of SolarTradex, explains it in under a minute.

IRPF + FACTOR 2026 combination · up to 75 % recoverable
For solar installations with battery in the Balearic Islands, combining the IRPF deduction (RDL 7/2026) with the direct FACTOR 2026 grant can allow you to recover up to 75 % of the investment*.
*Subject to FACTOR 2026 funding availability and approval by the Government of the Balearic Islands. The final calculation depends on the type of home, the specific installation and the applicant's tax situation.

Download the FACTOR 2026 guide in PDF:

FACTOR 2026 Guide · Solar panels and batteries in the Balearic Islands

Energy Savings Certificates (CAE) for aerothermal heat pumps

The Energy Savings Certificates (CAE) are a regulated system that lets you obtain a direct discount on your quote for the energy efficiency improvements you carry out, without waiting for grants or administrative processing.

The Royal Decree-Law 7/2026 has updated the CAE calculation coefficients to amplify the compensation for replacing combustion boilers with aerothermal heat pumps. This update multiplies the CAE discount applicable to this specific action.

Advantages of the CAE system:

Immediate discount on your quote: applied before installation, no need to wait for any public application to be resolved.
No paperwork for the customer: SolarTradex handles the CAE and transfers the saving directly to your final quote.
For residential and industrial use: applies both to households and to commercial and industrial projects.
Private market with no delays: energy companies "buy" the savings. As it doesn't rely on public funds, there are no administrative deadlines or risk of funding running out.

The most profitable combination: Replacing your gas boiler with an aerothermal heat pump and adding solar panels lets you access the high tiers of the IRPF deduction for energy retrofitting (40 % for apartments, 60 % for single-family homes) and, at the same time, apply the amplified CAE discount directly to your quote. Two independent benefits that add up in the same action.

If you're in the Balearic Islands · Add FACTOR 2026 too: CAE are compatible with the FACTOR 2026 call. A single project in the Balearic Islands can combine three benefits at once: CAE discount on the quote, IRPF deduction and direct FACTOR 2026 grant*.
*Subject to FACTOR 2026 funding availability and approval by the Government of the Balearic Islands.

Tax incentive for businesses: 100 % depreciation on renewables

The Royal Decree-Law 7/2026 allows businesses to depreciate 100 % of their investment in renewable energy in the same fiscal year the installation is commissioned, instead of the usual 15 years. This translates into a direct tax saving of 25 % of the investment during the first year (Corporate Income Tax rate), dramatically shortens the payback period and boosts the IRR.

Eligible systems: photovoltaics, aerothermal heat pumps and electric vehicle chargers.

Requirements:

The company must have positive taxable profits.
Maintain average headcount for 2 years after the investment.
Make the investment before 31/12/2026.

Maximum cap: investments of up to €500,000 per company.

Combined strategy to maximise fiscal impact: Combining accelerated depreciation with the CAE system (direct invoice discount for replacing a gas boiler with an aerothermal heat pump) and available regional grants turns the investment into a highly profitable financial operation. In many cases, in the first year the company recovers a very significant portion of the investment through tax savings and CAE credits.

If your business is in the Balearic Islands · Add FACTOR 2026: The FACTOR 2026 call also accepts applications from businesses for investments in renewable energy, electrical storage and charging infrastructure. It is governed by the de minimis regime (check the applicable limit for your company with your tax advisor). Combining accelerated depreciation + FACTOR 2026 + CAE can dramatically accelerate the project's ROI*.
*Subject to FACTOR 2026 funding availability and approval by the Government of the Balearic Islands.

Support for shared self-consumption: radius extended to 5 km

With the Royal Decree-Law 7/2026, the historical distance barrier falls: the limit for collective self-consumption through the grid rises from the previous 2 km to a maximum radius of 5 kilometres.

What the new framework means:

Proximity radius extended to 5 km: you can now share energy with installations located up to 5 km from the generating installation (previously, only 2 km).
Dual legalisation mode simultaneously: the same installation can be legalised as self-consumption without surplus and self-consumption through the grid at the same time, offering full flexibility for the project.
Applicable to industrial estates, neighbourhoods and entire municipalities: allows creating shared energy networks between businesses, neighbours and nearby premises.

Business use case: companies with large industrial rooftops can now make them 100 % profitable by sharing or distributing surplus energy with other businesses, neighbours or municipalities within the 5 km radius. Ideal for logistics warehouses, shopping centres or buildings with large available surface area.

FOTOPAR 2026 Grants for the Balearic Islands

Call closed. The FOTOPAR 2026 window ended on 30 April 2026. If you're planning a photovoltaic installation in the Balearic Islands, the new FACTOR 2026 call is now open. See details below.

The FOTOPAR 2026 grants were non-refundable financial aid for new photovoltaic and battery installations in the Balearic Islands during the first part of 2026.

Window: from 26 January to 30 April 2026 (funds exhausted).
Amounts: €600 / kWp for panels and €420 / kWh for batteries.
Allocation: strict first-come, first-served basis.

Reference example: for a 6 kWp installation with a 10 kWh battery, up to €7,200 in grants could be received*.

*Batteries were eligible with a new installation or an expansion of the existing installation of at least 1 kWp.

Download the FOTOPAR 2026 Quick Guide in PDF (historical reference document)

Now available · FACTOR 2026 (Balearic Islands): The new FACTOR 2026 call has been open since 9 July 2026, with an updated grant structure and compatible with the IRPF deduction. For solar installations with battery in the Balearic Islands, combining IRPF and FACTOR 2026 can recover up to 75 % of the investment*.
*Subject to FACTOR 2026 funding availability and approval by the Government of the Balearic Islands.

Municipal tax rebates · IBI and ICIO

The RDL 7/2026 legally enables local councils to apply rebates on two municipal taxes for projects that integrate renewable energy:

IBI (Property Tax): up to 50 % rebate, for periods of up to 5 years, for properties with renewable installations.
ICIO (Construction, Installation and Works Tax): up to 95 % rebate for projects that integrate thermal or electric renewable energy use.

The exact amount and conditions depend on each local council. Check the current fiscal ordinance in your municipality through the provincial tax collection body:

Barcelona · ORGT: IBI rebate · ICIO rebate
Girona · XALOC: IBI rebate · ICIO rebate
Lleida · OAGRTL: IBI rebate · ICIO rebate
Tarragona · BASE: IBI / ICIO
Balearic Islands: Consulta algunas bonificaciones de IBI en nuestra página para las Islas Baleares

Electric car chargers

Integrating an Electric Vehicle Charger (EVC) at home or at your business is now more profitable thanks to RDL 7/2026. The new tax incentives make it a natural complement to your photovoltaic installation.

15% Personal Income Tax (IRPF) deduction (individuals): on the investment in purchasing and installing the charger, valid until 31/12/2026. Maximum eligible base of €4,000 (up to €600 in savings). This deduction is independent of the incentives for solar panels or heat pumps, and therefore adds up without any additional conditions.

100% accelerated depreciation (businesses): under the free depreciation regime of RDL 7/2026, EV chargers benefit from 100% depreciation in the first tax year, together with photovoltaic and heat pump installations.

Programa Auto+ for vehicle purchase: RDL 7/2026 has also activated the Programa Auto+, funded with €400 million (€350M for households and the rest for companies and self-employed workers) for the purchase of electric vehicles (BEV) and electrified vehicles (PHEV, FCEV). It is compatible with the 15% IRPF deduction for installing the charger: one is the aid to buy the car (Auto+), the other is the aid to install the charging point (IRPF).

If you're in the Balearic Islands · Factor de Insularidad 2026-2027 also covers charging: The Factor de Insularidad 2026-2027 call for applications (published in BOIB no. 83 of 2 July 2026, open until 28 February 2027) includes electric vehicle charging infrastructure as an eligible action under Program 4. Individuals with no economic activity: up to 70% of the cost with a cap of €2,500 per installation. Businesses: from 20% to 40% depending on size, with a cap of €12,000 per installation (up to 70% under the de minimis regime). Combining it with the IRPF deduction (or accelerated depreciation, if you're a business) can dramatically accelerate the return on investment.

Want to calculate your return combining grants? Request a personalised charger study and we will prepare a proposal with all the incentives applicable to your case.

Guides on grants and subsidies

If you are in the middle of processing or justifying your subsidies, on our blog we share our experience and resources to help you resolve it (Please note: the linked articles are in Spanish):

RDL 7/2026 Guide: Deductions and incentives for the energy transition: We analyze the new legal framework so you can make the most of tax deductions and aids for aerothermal and self-consumption.
Factor de Insularidad 2026-2027 call for applications in the Balearic Islands: We analyze the four programs (photovoltaic, aerothermal, batteries, EV charging point), who can apply for what according to their profile, and the fiscal synergies with RDL 7/2026.
Complete guide on how to collect the subsidy for your solar installation: We explain the legal and administrative steps to follow if your installation company no longer exists or doesn't reply.
Next Generation subsidies and solar self-consumption: the "history" or "tragicomedy" of subsidies: Discover from the inside our experience managing over 1,400 files since 2021.

View all blog articles

Frequently asked questions

Can I deduct the installation of solar panels in my income tax return?

If you are considering an energy transition in your home during 2026, it is essential to know the IRPF (income tax) deductions introduced by the Royal Decree-Law 7/2026. These incentives are designed to reward those who drastically reduce their dependence on fossil fuels.

Yes, you can deduct part of the investment in your solar installation. The amount depends on two key factors:

The type of home: flat in a residential building (deductions from 10% to 40%) or detached house (from 20% to 60%).
Whether the works achieve a 30% reduction in non-renewable primary energy consumption (certified with an Energy Efficiency Certificate, EEC), giving access to the higher brackets (40% for flats, 60% for detached houses).

The winning strategy

To access the maximum deductions, the most common route is to combine photovoltaic installation with aerothermal: replacing the gas boiler guarantees exceeding the 30% threshold and activating the higher deduction bracket. In addition, if you add a charger for an electric vehicle, you add a 15% independent deduction.

Joint ownership: double deduction

If the property has two owners, the deduction can be applied twice by splitting the cost of the works in two. That is, each owner can deduct up to the maximum allowed based on the type of home and action, doubling the total tax savings.

How to achieve the maximum Income Tax (IRPF) deduction (40% or 60%)?

Installing only solar panels usually stays within the 20% bracket. To reach the 30% consumption reduction required for the top brackets, the best routes are:

Photovoltaic + Aerothermal: Replacing your gas boiler with an aerothermal system and adding solar panels guarantees exceeding the 30% savings threshold. It also unlocks the direct discounts from the CAE certificate system.
If you already have electric heating: In these homes, installing solar panels alone is usually enough to achieve the 30% reduction and jump to the maximum deduction.
Adding an EV charger: Adding a charging point to the project always provides an extra independent 15% deduction.

What are the technical requirements for these Income Tax (IRPF) deductions?

The fundamental technical requirement to apply these income tax deductions is having the official technical justification corresponding to each type of action, in addition to the fact that the property cannot be used for any economic activity.

This justification is provided through official certificates and by meeting minimum improvement thresholds:

1. Energy Efficiency Certificates (CEE): They are essential to justify deductions linked to the efficiency and reduction of the property's or building's consumption:

For demand reduction: The CEE must certify that the work has reduced heating or cooling demand by at least 7%.
For primary consumption improvement: The CEE must show that non-renewable primary energy consumption has been reduced by 30%, or that an A or B energy rating has been reached.

2. Electrical Installation Certificates (CIE): Required for electricity generation installations:

For renewable self-consumption: The installation of photovoltaic panels is certified through the CIE. A vital requirement is that this specific deduction is not cumulative with the building rehabilitation deductions mentioned above.

3. Physical infrastructure:

For electric mobility: The requirement is to physically install charging points for electric vehicles (EV) that are owned by the taxpayer.

How is the 30% reduction calculated to qualify for the maximum Income Tax deduction?

The 30% reduction refers specifically to the decrease in non-renewable primary energy consumption of the property or building.

Although the regulations do not specify the exact mathematical formula, the calculation and official certification must be carried out through the Energy Efficiency Certificates (CEE). This technical certificate compares the previous and subsequent state of the property to justify access to the 40% deduction (individual homes) or 60% (entire buildings).

Note: The deduction also applies if the CEE proves that, after the works, an energy rating with an A or B label has been reached.

Technical analyses indicate that an integrated intervention, such as combining photovoltaic panels with the replacement of a gas boiler with an aerothermal system, virtually guarantees exceeding this 30% threshold.

Can Income Tax (IRPF) deductions and CAE incentives be combined?

Yes, they are perfectly compatible and can be combined in the same project. In fact, taking advantage of both incentives together is the most profitable strategy under the new framework of the Royal Decree-Law 7/2026.

When a deep energy renovation is carried out — for example combining the installation of solar panels with the replacement of a gas boiler with an aerothermal system — the client can access both benefits at the same time:

IRPF (income tax) deduction: this technical integration allows you to exceed the 30% threshold of non-renewable primary energy consumption reduction, which catapults you into the maximum tax deduction brackets, allowing you to deduct 40% (in flats in residential buildings) or 60% (in detached houses) in your IRPF.
Direct discount through the CAE: in parallel and in addition to your income tax return, the installation of the aerothermal system generates Energy Saving Certificates (CAE) which are now enhanced by a new multiplier coefficient. The economic value of these certificates allows the installer to apply a direct discount on the initial quotation presented to you.

Check the details on our grants and subsidies for solar panels page.

Are these deductions compatible with local Property Tax (IBI) reductions?

Yes. RDL 7/2026 legally enables municipal councils to apply reductions of up to 50% on the IBI (property tax) and rebates of up to 95% on the ICIO (construction tax) for projects that integrate renewables.

Both benefits are presented as complementary incentives alongside the state income tax deductions. There is no legal restriction preventing the simultaneous enjoyment of local and state tax advantages.

Important note on incompatibilities: The only express restriction occurs internally between the income tax deductions themselves: the 20% deduction for installing renewable self-consumption cannot be combined with the building rehabilitation deductions.

What procedures are needed to install solar panels and how much do they cost?

At SolarTradex we handle all administrative management: you only need to sign. These are the procedures and approximate costs by territory.

Procedures in Catalonia

Prior notice of works (municipal): declares the start of the installation to the town council.
ICIO (Construction Tax): 4% of the PEM (Material Execution Budget, excluding VAT and fees). Most town councils apply reductions of up to 95% — we request them together with the notice.
Municipal licence fee: approximately 1.5% of the PEM. It varies by town council; some do not charge it.
Waste management deposit: some town councils charge it (few cases) and it is usually refundable. We handle it.
Deferred notice of works: only in municipalities with specific regulations or listed areas. Currently required in: Barcelona, Badalona, L'Hospitalet de Llobregat, Sant Cugat del Vallès, Terrassa, Sabadell, Girona, Tarragona and Reus.
RITSIC (Register of Industrial Safety Technical Installations of Catalonia): €34.15 paid by the client.
RAC (Self-consumption Register): no cost. Included with the RITSIC payment.
Opening of the work centre: no cost.

Procedures in the Balearic Islands

Register of electricity production installations: free up to 15 kWn. Above this power: €46.76. Extensions, battery additions or modifications to existing installations: also €46.76.
The remaining municipal procedures (licence, ICIO, notice of works) follow the same logic as in Catalonia, with amounts defined by each town council.

Energy Performance Certificate (CEE) for income tax deduction

If you want to apply the income tax deduction, you need a double CEE certification (one prior, no more than 2 years old, and another after the works).

Do we handle it? Yes. The entire administrative process (permits, registrations, applications for reductions) is managed by our team. You receive your installation up and running and fully legalised.

How long does it take to collect NextGeneration subsidies and current grants for solar panels?

The timeframes depend on the type of grant, and with the new framework of the Royal Decree-Law 7/2026, the system has been simplified. The IRPF (income tax) deduction is applied in the following year's tax return (immediate effect when filing). The CAE system is the fastest incentive, as it is applied as an immediate discount on the quotation, before the works begin.

The FACTOR 2026 call in the Balearic Islands is resolved on a strict first-come, first-served basis; after the grant is awarded and the installation justified, the Government makes the payment. The municipal IBI discount depends on each town council and is usually applied from the fiscal year following the application.

Regarding the NextGeneration subsidies awarded in 2021-2022, there are still files pending resolution or payment due to administrative overload. If you have a pending NextGeneration file, we recommend consulting our specialised content on our blog for guidance on how to complete the justification and collect the subsidy.