SolarTradex is the best option for solar panel installations
Grants for installing solar panels in Mallorca and the Balearic Islands
FOTOPAR2026 - FEDER Program 2021-2027
Subsidies for solar photovoltaic installations and batteries in the Balearic Islands. Budget of €2,000,000 assigned strictly by order of entry.
Dates and Allocation Method
- Opening: January 26, 2026.
- Closing: April 30, 2026.
- Method: Non-competitive procedure (first-come, first-served until funds are exhausted).
Beneficiaries
Natural persons domiciled in the Balearic Islands:
- Individuals: For residential use in homes.
- Freelancers (Autónomos): For their workplace or property, registered in the Census of Entrepreneurs.
Actions and Amounts
New installations or expansions are subsidized with the following modules:
| Concept | Aid Amount | Limits |
|---|---|---|
| Photovoltaic (Individual) | 600 € / kWp | Up to 5 kWp |
| Photovoltaic (Collective) | 710 € / kWp | Up to 5 kWp |
| Batteries | 420 € / kWh | Up to 30 kWh (Max. 12.600 €) |
Note on batteries: They must be installed together with a new installation of at least 1 kWp. The aid amount shall not exceed the real cost of the action in any case.
Essential Technical Requirements
- Monitoring: Mandatory system to visualize production and consumption from a mobile device.
- Isolated Homes: Must prove legality (habitability certificate, building permit, or completion certificate).
- Publicity: Mandatory to place an official A3-sized plate or sticker visible to the public.
- Limitation: Only one subsidy per CUPS (supply point code).
Execution Deadlines
- Work deadline: Maximum of 4 months from the notification of the concession.
- Final deadline: Execution cannot exceed October 31, 2026.
- Justification: Invoices, payment proofs, and photographs must be submitted after finalizing the installation.
For more details, you can consult the official guide or contact our team for the technical management of your application.
Tax incentives for installing solar panels in the Balearic Islands
IBI (Property Tax) Deductions
Many municipalities in the Balearic Islands offer IBI deductions that can reach up to 100%. In Palma, for example, the bonus is 50% for 6 years.
IBI BONUS MALLORCA
| Municipality | Bonus |
|---|---|
| Alcúdia | 50% for 3 years |
| Andratx | 25% for 3 years |
| Ariany | 50% |
| Artà | 50% for 3 years |
| Campanet | 50% for 5 years |
| Capdepera | 50% for 3 years |
| Inca | 50% for 3 years |
| Llucmajor | 50% for 3 years |
| Mancor de la Vall | 50% for 3 years |
| Palma | 50% for 6 years |
| Sant Llorenç | 50% for 5 years |
IBI BONUS MENORCA AND IBIZA
| Municipality | Bonus |
|---|---|
| Alaior | 50% for 3 years |
| Ciutadella | 25% for 3 years |
| Es Castell | 50% for 5 years |
| Es Mercadal | 30% for 3 years |
| Maó | 50% for 2 years |
| Eivissa | 40% for 5 years |
| Sant Josep de sa Talaia | 50% for 3 years |
| Mancor de la Vall | 50% for 5 years |
ICIO Bonus
Some municipalities also offer bonuses on the ICIO (Tax on Constructions, Installations, and Works) of up to 95% of the total quota.
Reduced VAT of 10%
A reduced VAT of 10% can be applied to rehabilitation works that include solar panels, provided they do not exceed 40% of the total cost of the work and are part of a comprehensive reform or rehabilitation.
Technical office in Mallorca: local and trusted management
The opening of our office in the Balearic Islands allows us to be closer to our clients, with a local technical team offering quality, transparent, and specialized service in solar energy.
SolarTradex carries out turnkey projects with a team of over 70 specialists, allowing us to control every detail of the project and guarantee its quality from the first contact to legalization and aid processing.
We are driven by a passion for renewable energies. We want more and more homes and businesses in the Balearic Islands to join the energy model change.
The Balearic Islands have some of the best solar conditions in Europe. Taking advantage of them with solar energy not only allows for savings but also cares for the environment.
Will you join the energy transition?
Son Fuster
Calle del Fluvià, 1, bajos derecha
07009 Palma - Balearic Islands
OPENING HOURS
Monday to Thursday from 9:00 a.m. to 6:00 p.m.
Friday from 9:00 a.m. to 2:00 p.m.
Telephone and Whatsapp: 931 696 597
HOW TO GET THERE
Google Maps SolarTradex Balearic Islands
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.