Grants and Subsidies 2026 for Solar Panels · IRPF, FACTOR 2026 and CAE
*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
The Royal Decree-Law 7/2026 expands personal income tax (IRPF) deductions for residential properties. There are three different deductions that may apply depending on the type of work: one for renewable self-consumption, another for energy efficiency (retrofitting), and a third independent one for electric vehicle chargers.
1. Deduction for renewable self-consumption — Valid until 31/12/2026
- Apartment with solar panels: 10 % deduction on a maximum base of €5,000 (up to €500 in savings).
- Single-family home with solar panels: 20 % deduction on a maximum base of €5,000 (up to €1,000 in savings).
2. Deduction for energy efficiency (retrofitting) — Valid until 31/12/2027
Applies if the work reduces non-renewable primary energy consumption by at least 30 % (or achieves an A or B energy rating). Requires an Energy Performance Certificate (EPC) issued after the work is completed.
- Apartment: 40 % deduction on a maximum annual base of €7,500 (up to €3,000 in savings).
- Single-family home: 60 % deduction on a maximum cumulative 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 deductions.
How to reach the maximum deduction: Installing only solar panels puts you in the self-consumption deduction (10 % for apartments, 20 % for single-family homes). To access the 40 % or 60 % energy retrofitting deduction, you need to cut non-renewable primary energy consumption by at least 30 %, certified through the Energy Performance Certificate (EPC). The most common route is to combine photovoltaics + aerothermal heat pump (or 2 heat pumps); if you already have fully electric heating, solar panels alone may be enough. Adding an electric vehicle charger always brings an extra independent 15 % deduction.
If you're in the Balearic Islands · Combine IRPF with FACTOR 2026: If your installation includes a battery, you can combine the IRPF deduction with the new regional grant call FACTOR 2026. In such cases, up to 75 % of the investment may be recovered*.
*Subject to FACTOR 2026 funding availability and approval by the Government of the Balearic Islands.
FACTOR 2026 Grants in the Balearic Islands · Call open
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).
- Electric vehicle charging infrastructure.
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.
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.
Free depreciation for investments using renewable energy
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.
Energy Communities
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 (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.
Electric car chargers
Adding an Electric Vehicle Charger (EVC) at home or in your business is now more profitable with the RDL 7/2026. The new tax incentives make it a natural complement to your solar installation.
IRPF deduction of 15 % (individuals): on the investment in purchase and installation of the charger, valid until 31/12/2026. Maximum base of €4,000 (up to €600 in savings). It's an independent deduction from solar panel or aerothermal support, so it adds up without additional conditions.
Accelerated 100 % depreciation (businesses): within the free depreciation regime of the RDL 7/2026, EV chargers benefit from 100 % depreciation in the first fiscal year, alongside photovoltaics and aerothermal heat pumps.
If you're in the Balearic Islands · FACTOR 2026 also covers charging infrastructure: The FACTOR 2026 call includes electric vehicle charging infrastructure as a subsidised action, both for individuals and for businesses. Combining it with the IRPF deduction (or accelerated depreciation, if you're a business) can dramatically speed up the return on 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: Contact us
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.
- 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.
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.
