2026 Grants, Subsidies, and Tax Incentives for Solar Self-Consumption
Maximize your savings:
Take advantage of FOTOPAR subsidies, income tax (IRPF) deductions (up to 60%), property tax (IBI) discounts, and the new CAE certificate system.
How to drastically reduce the cost of your installation
Deduction of 60% of the investment in personal income tax
RDL 7/2026 expands tax benefits for energy home improvements. This decree establishes a framework for massive grants to reduce energy dependency through direct tax incentives (Income Tax / IRPF) and efficiency bonuses.
1. Individual installations (Valid until 12/31/2026)
- Solar panels: 10% deduction for individual homes and 20% for buildings (maximum €1,000 savings).
- Electric vehicle charger: 15% deduction (maximum €600 savings).
- 7% reduction in climate demand: 20% deduction (maximum €1,000).
2. Deep renovations (30% reduction in consumption or A/B energy label)
If the improvement reduces primary energy consumption by at least 30%, the incentives increase significantly:
- Individual housing (Until 12/31/2026): 40% deduction (maximum €3,000).
- Residential building (Until 12/31/2027): 60% deduction (maximum €9,000).
Tip to achieve the maximum deduction: Installing solar panels alone usually only qualifies for the 20% bracket. To reach the 30% consumption reduction required for the highest grants, the best strategy is to combine Solar PV + Aerothermal heating (or install panels if you already have electric heating). This ensures the jump to the 40% or 60% deduction bracket. Additionally, adding an EV charger to your project always provides an extra independent 15% tax deduction.
Free depreciation for investments using renewable energy
With Royal Decree-Law 7/2026, investing in sustainability is no longer just a measure to reduce the electricity bill, but a highly profitable financial operation that drastically shortens the payback period and boosts the IRR.
Benefit: Early depreciation in just 1 year (instead of the usual 15). This is equivalent to a direct return of 25% of the investment via Corporate Tax during the first year.
Requirements: The company must have profits, maintain the average headcount for a period of 2 years, and make the investment before 12/31/2026.
Eligible systems: Solar PV, aerothermal systems, and electric vehicle chargers.
Maximum limit: Investments up to €500,000.
What does this mean?: The new decree allows companies to deduct the total investment in the same fiscal year that the installation goes into operation.
Heat pump boost plan through CAEs
Energy Saving Certificates (CAE) are a system that allows you to obtain direct and fast financial compensation for energy efficiency improvements made to your home, such as the installation of solar panels or aerothermal systems.
Royal Decree-Law 7/2026 brings excellent news for those who decide to eliminate fossil fuels: the modification of the correction coefficients for calculating the CAEs corresponding to the replacement of combustion boilers with heat pumps (aerothermal systems).
- Increased financial compensation: Within a month, the Government will increase the amount of CAEs to be received for this action, which translates into a higher, faster direct income for the client.
- For all sectors: This multiplication of savings will apply to residential customers as well as commercial and industrial projects.
- Private market with no waiting: Unlike subsidies, energy companies "buy" this saving from you. By not depending on public funds, you receive the money securely.
The most profitable combination: By replacing your old gas boiler with an aerothermal system, you not only gain access to the maximum 60% Income Tax (IRPF) deduction, but you will also now get a much larger direct discount on your budget thanks to these new CAE coefficients.
FOTOPAR 2026 Grants (Balearic Islands)
Direct non-refundable grants for residents in the Balearic Islands.
Deadline: Open from January 26 to April 30, 2026 (or until funds run out).
Amount: 600 € / kWp for panels and 420 € / kWh for batteries.
Note: Grants are assigned on a strict first-come, first-served basis. We recommend having your quote ready before the opening date.
Example: A 6 kWp installation with a 10 kWh battery can receive up to €7,200 in subsidies*.
*Batteries are subsidizable when paired with a new installation or an expansion of at least 1 kWp.
Energy Communities
The historical barrier of distance has fallen. With the new Royal Decree-Law 7/2026, the limit for collective self-consumption through the grid is increased from the previous 2 km to a new maximum radius of 5 kilometers.
Dual legalization modality: One of the major technical innovations is that it is now permitted to have the same self-consumption installation legalized in two different modalities simultaneously: without surplus and through the grid, providing total flexibility to the project.
Boosting Energy Communities: This regulation is the ultimate solution for creating shared energy networks in industrial estates, neighborhoods, and municipalities. It allows companies to fully monetize their large roofs by selling or sharing energy with nearby neighbors and businesses.
Electric car chargers
Integrating an Electric Vehicle Charger (EVC) into your home or business is now more profitable than ever with RDL 7/2026. Thanks to these new tax incentives, sustainable mobility becomes the perfect complement to your solar PV installation.
Direct Income Tax (IRPF) deduction: The new decree allows for a 15% tax deduction on the investment for the purchase and installation of the charger until 12/31/2026, with a maximum base of €4,000.
This deduction is independent of the grants for solar panels or aerothermal systems, allowing you to combine tax benefits if you carry out a comprehensive energy upgrade in your home.
IBI Rebate
The new regulatory framework legally empowers City Councils to apply reductions of up to 50% on Property Tax (IBI). Thanks to this, many local councils are already applying this significant discount for periods of up to 5 years to reward renewable energy installations.
You can check the exact bonus available in each municipality by consulting the corresponding local tax ordinance for the current year:
- IBI Reduction ORGT Barcelona
- IBI Reduction XALOC Girona
- IBI Reduction OAGTRL Lleida
- IBI Reduction BASE Tarragona
- IBI Reduction Balearic Islands
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ICIO Grant
The new regulatory framework legally empowers City Councils to apply reductions up to 95% on the Construction, Installation, and Works Tax (ICIO) for projects that integrate renewable thermal or electrical energy.
You can check the exact bonus available in each municipality by consulting the corresponding local tax ordinance for the current year:
If you are currently in the process of managing or justifying your subsidies, on our blog we share our experience and resources to help you sort it out:
- Complete guide on how to collect the subsidy for your solar installation (in Spanish): We explain the legal and administrative steps to follow if your installation company no longer exists or does not answer.
- Next Generation subsidies and solar self-consumption: "history" or "tragicomedy" of the grants (in Spanish): Get an inside look at our experience managing more than 1,400 files since 2021.
Frequently asked questions
would like to know if you know approximately how many months it takes to pay the NextGeneration subsidies and the IBI credit?
The subsidies are very slow to be resolved due to lack of ICAEN resources.
RD477/2021 establishes a period of 6 months to grant the subsidy, although currently this period is far exceeded given that as of today only applications registered on 01/10/22 have been granted.
Once the subsidy is granted, a period of 18 months begins to justify the investment and then the ICAEN has 6 months to pay.
The IBI bonus depends on each municipality, although it normally takes a minimum of 6 months.
Can Income Tax (IRPF) deductions and CAE incentives be combined?
Yes, they are perfectly compatible and can be combined within the same project. In fact, taking advantage of both incentives together is the most profitable strategy under the new regulations.
When a deep energy renovation is carried out—such as combining solar panel installation with replacing a gas boiler with an aerothermal system—the client can access both benefits simultaneously:
- Income Tax (IRPF) Deduction: This technical integration allows you to exceed the 30% primary non-renewable energy consumption reduction threshold. This catapults you into the maximum tax deduction brackets, allowing for a 40% deduction (for individual homes) or a 60% deduction (for building-wide renovations) on your Income Tax.
- Direct CAE Discount: In parallel and in addition to your tax return, the heat pump installation generates Energy Saving Certificates (CAE), which are now boosted by a new multiplying coefficient. The economic value of these certificates allows the installer to apply a direct discount on the initial quote presented to you.
How to achieve the maximum Income Tax (IRPF) deduction (40% or 60%)?
Installing solar panels alone usually only qualifies for the 20% bracket. To achieve the 30% consumption reduction required for the highest tax brackets, the best options are:
- Solar PV + Aerothermal: Replacing your gas boiler with an aerothermal system and adding solar panels guarantees exceeding 30% in energy savings. Additionally, it gives you access to direct discounts through the CAE Certificate system.
- If you already have electric heating: In these homes, installing solar panels is often enough on its own to achieve that 30% reduction and jump to the maximum tax deduction.
- Adding a charger: Including an EV charging point in the project always provides an additional, independent 15% tax deduction.
What are the technical requirements for these Income Tax (IRPF) deductions?
The fundamental technical requirement to apply for these Income Tax (IRPF) deductions is to have the official technical justification for each type of action. Additionally, the property must not be linked to any economic activity.
This justification is based on official certificates and meeting minimum improvement thresholds:
1. Energy Efficiency Certificates (CEE): These are essential to justify deductions related to the efficiency and consumption reduction of the home or building:
- For demand reduction: The CEE must certify that the project has achieved at least a 7% decrease in heating or cooling demand.
- For primary consumption improvement: The CEE must demonstrate a 30% reduction in non-renewable primary energy consumption, or that the project has achieved an energy rating of A or B.
2. Electrical Installation Certificates (CIE): Required for power generation installations:
- For renewable self-consumption: The installation of photovoltaic panels must be verified via the CIE. A vital requirement is that this specific deduction cannot be combined with the building renovation deductions mentioned above.
3. Physical Infrastructure:
- For electric mobility: The requirement is to complete the physical installation of electric vehicle (EV) charging points owned by the taxpayer.
How is the 30% reduction calculated to qualify for the maximum Income Tax deduction?
The 30% reduction specifically refers to the decrease in non-renewable primary energy consumption of the home or building.
Although the regulations do not detail an exact mathematical formula, the official calculation and certification must be carried out through Energy Efficiency Certificates (CEE). This technical certificate compares the property's energy status before and after the project to justify access to the 40% (individual homes) or 60% (entire residential buildings) tax deductions.
Note: The deduction also applies if the CEE demonstrates that, after the work, an energy rating of A or B has been achieved.
Are these deductions compatible with local Property Tax (IBI) reductions?
Yes. RDL 7/2026 legally empowers City Councils to apply reductions of up to 50% on Property Tax (IBI) and discounts of up to 95% on Construction Tax (ICIO) for renewable energy projects.
Both benefits are presented as complementary investment incentives alongside national Income Tax (IRPF) deductions. There is no legal restriction preventing you from enjoying both local and state tax advantages simultaneously.