Solar panels in the Balearic Islands: turnkey installation
We are solar engineers and installers with our own office in Palma de Mallorca, from where we cover the Balearic Islands (Mallorca, Menorca and Ibiza) with a proximity service.
We work mainly with single-family homes, detached houses and rural properties in residential areas of Mallorca, Menorca and Ibiza, as well as with hotels, tourism-sector companies, industrial projects and homeowners' associations.
We design and install every project turnkey with our in-house engineering and staff: energy study, permits, legalisation and management of grants such as the FACTOR 2026 programme active in the Balearic Islands.
4 reasons to install solar panels in Mallorca and the Balearic Islands
The Balearic Islands are one of the best regions in Europe for solar self-consumption. Here are the four key reasons:
1. Maximum solar exposure
Palma de Mallorca exceeds 2,750 hours of sunlight per year, with an annual solar radiation of 1,700 kWh/m² — figures equivalent to Andalusia and well above the mainland Spanish average. This translates into high and stable photovoltaic production throughout the year.
2. Higher electricity cost than mainland Spain
The Balearic Islands are a non-mainland electricity system: part of the generation is produced locally and another part arrives via submarine interconnection. This structural surcharge is partly covered by the Spanish State Budget, but the Balearic consumer pays more per MWh generated than mainland users. Producing your own energy with solar panels reduces this price exposure.
3. Faster payback and demand coincidence
The high solar radiation in the Balearics shortens the payback period of a photovoltaic installation compared to similar projects in northern mainland Spain. Additionally, peak solar production (summer) coincides with the peak electricity consumption of the islands due to tourism and cooling demand, which maximises direct self-consumption and economic return.
4. The Balearics, European clean energy islands heading to 2030
The Balearic Islands have been selected by the European Commission as part of the clean islands initiative, positioning them as a strategic territory for the energy transition. The regional roadmap sets a target for 2030 to halve primary energy consumption and move towards decarbonisation.
The key pillars of the plan include the second electricity link with the mainland and between islands, the photovoltaic boost through the Investment Plan for the Energy Transition (PITEIB) and participation in leading European programmes. This context makes the Balearic Islands one of the regions with the strongest political, financial and regulatory support for solar self-consumption in all of Europe.
Combined with active grants (FACTOR 2026, IRPF, CAE and IBI discounts), installing solar panels in the Balearic Islands is today one of the best-return investment decisions in the Spanish energy market.
Request a Balearics quote with no commitment
Solar panels prepared for the marine environment of the Balearic Islands
Proximity to the sea requires solar panels certified to withstand salt mist and marine humidity. At SolarTradex we work with SunPower Performance panels, with the highest level of salt mist certification available on the market: IEC 61701 Severity 8, the strictest on the international scale.
Our total warranty covers marine environments with no minimum distance to the sea (only excludes direct contact with saltwater such as waves or splashes). The encapsulant resists humidity and corrosion, and adds other key certifications: Fire Class A (fire), Ammonia Test, Dust and Sand, PID Test and Cradle to Cradle Bronze (sustainability).
The most recommendable option for installations on the seafront, off-grid homes on the coast, and projects where the real lifespan of the equipment is critical.
Discover SunPower Performance panels
Active grants and subsidies for installing solar panels in Mallorca and the Balearic Islands
FACTOR 2026 · Call open since 9 July 2026. New call from the Government of the Balearic Islands for photovoltaic installations, batteries and charging points. Allocation on a strict first-come, first-served basis, until the budget allocation runs out.
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.
See the full details of FACTOR 2026, IRPF, CAE, IBI discounts and all active grants on our grants and subsidies for solar panels page.
Download the FACTOR 2026 guide in PDF:
FACTOR 2026 Guide · Solar panels and batteries in the Balearic Islands
Read more in our article (Spanish): Analysis of the Insularity Factor 2026-2027 in the Balearic Islands.
FOTOPAR 2026 — call closed
The submission period for FOTOPAR 2026 applications ended on 30 April 2026. SolarTradex continues to advise applicants on the processing and justification of submitted files.
FOTOPAR 2026 Guide in PDF (historical reference document)
Tax incentives for installing solar panels in the Balearic Islands
Many municipalities in the Balearic Islands offer IBI deductions of up to 100%. In Palma, for example, the discount is 50% for 6 years.
IBI discount Mallorca
| Municipality | Discount |
|---|---|
| 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 discount Menorca and Ibiza
| Municipality | Discount |
|---|---|
| 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 |
ICIO discount
Some municipalities also offer discounts on the ICIO (Tax on Constructions, Installations and Works) of up to 95% of the total fee.
Reduced VAT of 10%
A reduced VAT of 10% can be applied to refurbishment works that include solar panels, provided these do not exceed 40% of the total cost of the works and are part of a comprehensive reform or refurbishment.
Technical office in Palma: local and trusted management
Our office in the Balearic Islands allows us to be closer to our clients with a local, transparent and specialised technical team in solar energy. We are driven by our passion for renewable energies and we want more and more homes and businesses in Mallorca, Menorca and Ibiza to join the shift to a new energy model.
SolarTradex delivers turnkey projects with our own team, controlling every detail from the first contact to the legalisation and processing of grants.
In addition to solar panels, in the Balearic Islands we also install aerothermia with solar integration, chargers for electric vehicles and offer industrial self-consumption solutions for businesses and hotel projects.
+50
people on the team
+2,000
installations completed
+15
years of experience
€450,000
in grants managed
What our Balearic clients say
★★★★★
5.0 on Google Reviews
Verified average score from our clients in the Balearic Islands
"I am very happy with the whole installation and the management. From the very first moment Carlos was on top of everything, and both he and the whole company proved to be very professional. They met every deadline, were very careful and left everything perfect. If I ever needed another installation, I would count on them again."
Joana Maria · Campanet, Mallorca · ★★★★★
"Very satisfied with SolarTradex's work — professional, always available for any question or task. Everything transparent and simple, even the bureaucracy with the town hall regarding permits and grants… they took care of everything. I worked with Carlos, who has been impeccable. We are very happy."
Archil · Felanitx, Mallorca · ★★★★★
"Very good experience. Clean work, well organised and with an impeccable result. I would call them again without hesitation."
Camila · Palma, Mallorca · ★★★★★
Shall we start your solar project in the Balearic Islands?
Send us a recent electricity bill and some basic details about your home or business in Mallorca, Menorca or Ibiza. We will prepare a proposal adapted to your consumption, with no commitment.
Request a Balearics quote with no commitment
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ADDRESS
Son Fuster
Calle del Fluvià, 1, ground floor right
07009 Palma - Balearic Islands
Phone: +34 931 696 597 and +34 675 86 90 39
Email: hola@solartradex.com
OPENING HOURS
Monday to Thursday: 9:00 - 18:00
Friday: 9:00 - 14:00
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.
