Solar Incentives in Spain in 2026: Tax Rebates & Grants

Want a rapid overview of the solar incentives available in Spain?

This post is for you.

Below, you’ll find a quick overview of the incentives available in the 3 Spanish regions most popular with foreign homeowners: Andalusia, Murcia and the Valencian Community.

While the Next Generation EU grant schemes ended on 31 December 2023, tax incentives can still help you save money in 2026 – often in the region of 20% to 60% of the total installation cost.

In this post, you’ll discover:

• An overview of solar incentives in Spain’s 17 regions
• The direct solar grants still available
• The available tax deductions and rebates – and how much you could save
• The deadline for each relevant incentive

Let’s go!

Overview: the 4 solar incentives in Spain

In 2026, there’s still a mix of direct solar grants, income tax deductions, and local tax rebates available for homeowners in Spain.

In most cases, you’ll need to be registered on the municipal padrón (the town hall’s official register of residents). Some incentives also only apply if you pay Spanish income tax (IRPF), which usually means being a Spanish tax resident.

Let’s take a closer look below at what they are.

1. Solar grants & subsidies

Direct solar grants are subsidies that you are paid after installing a solar system, provided you meet the criteria.

These grants became widely available from 30 June 2021, as part of Spain’s Recovery, Transformation and Resilience Plan (PRTR), financed through the EU’s Recovery and Resilience Mechanism (NextGenerationEU funding).

Most regions stopped accepting applications after 31 December 2023.

That said, some regions have continued offering solar grants in 2026 via their own funding or extensions – for example, in the Valencian Community.

How Much Can I Save?

You can receive a solar grant for up to 40% of the eligible project cost, capped at €3,000 per home. This is currently only available in the Valencian Community – but will expire on 27th February 2026, according to the Generalitat Valenciana.

You’ll need to show energy improvement: either 7%+ reduction in heating/cooling demand or 30%+ reduction in non-renewable primary energy consumption (as evidenced in the application requirements).

2) IRPF income tax rebate

The IRPF incentive is a tax rebate that reduces the income tax you pay.

Many people in Spain assume this incentive reduces their taxable income base. But according to the Ley 35/2006, the IRPF income tax rebate reduces your final tax bill.

Here’s an example.

Let’s say you owe €5,000 in Spanish income tax (IRPF) and your solar installation includes €10,000 of eligible costs. You could see your IRPF bill drop from €5,000 to €1,000.

The IRPF income tax rebate is still available in 2026 for a limited time.

How Much Can I Save?

As a homeowner, you can reduce your IRPF income tax bill through Spain’s national energy efficiency deductions. The amount you get back depends on the level of improvement you achieve, proven by an official energy efficiency certificate before and after the works.

Here are the current thresholds, according to Spain’s ministry of housing.

• 20% deduction – up to €1,000 back. You must reduce your home’s heating and cooling demand by at least 7%. Applies to your main home, or a home you rent out (or plan to rent out before 31 December 2027). Maximum investment base: €5,000.
• 40% deduction – up to €3,000 back. You must cut non-renewable primary energy consumption by at least 30%, or improve your home’s energy rating to A or B. Applies to your main home or a rented/to-be-rented property. Maximum investment base: €7,500.
• 60% deduction – up to €3,000 back per year, €9,000 in total. This applies when improvement works affect the whole residential building, achieving a 30%+ reduction in non-renewable primary energy use, or reaching an A or B rating at building level. The annual investment base is capped at €5,000, with a cumulative maximum of €15,000 across all years.

Note: these three deductions are not compatible with each other — you can only claim one per property.

Valencian Community: Additional Regional Deduction for Solar & Renewables

If you live in the Comunitat Valenciana, you may be able to claim an additional regional IRPF deduction on top of the national ones above*, specifically for renewable energy installations.

• 40% deduction — up to €3,200 back. Applies to solar PV, solar thermal, biomass, geothermal, or off-grid wind installations in your main home. Maximum investment base: €8,000 per year, and unused amounts can be carried forward for up to 4 years.
• 20% deduction — up to €1,600 back. The same scheme applies at a reduced rate for second homes, as long as the property is not used for business purposes.

Important: Before claiming this deduction, you must obtain a certificate from IVACE (Institut Valencià de Competitivitat Empresarial) confirming your installation qualifies. Works must be carried out by a certified installer. The deadline for application is 31 December 2026.

Note: Whether the Valencia regional deduction can be combined with the national deductions on the same investment is not definitively confirmed. We recommend consulting a tax advisor to clarify your specific situation.

3) Rebates for the IBI property tax

In some municipalities, you can also get a rebate on your property tax, known as IBI (Impuesto sobre Bienes Inmuebles).

This is a discretionary incentive, meaning each town hall decides whether to offer it. Your ayuntamiento can offer up to 50% off the IBI bill for properties with solar systems.

According to Spain’s Fundación Renovables, 67% of municipalities with over 10,000 inhabitants have implemented an IBI reduction linked to home solar energy systems.

How Much Can I Save?

You can save up to 50% off your property tax payments (IBI) for up to 10 years after installing a solar panel installation.

But the discounted amount and the duration depend on your town hall. See below for IBI tax rebates in towns and cities popular with foreign residents below.

4) Rebates for the ICIO installation tax

Spain offers incentives that can reduce the local tax you may pay when applying for the installation permit for solar panels.

This is the ICIO: Impuesto sobre Construcciones, Instalaciones y Obras.

It’s a municipal tax charged on the real cost of the works (excluding VAT and other non-construction items). The rate is set by each town hall, but it cannot exceed 4%.

Rebates are discretionary. Some town halls set solar-related ICIO rebates as high as 95% – so if your installation costs €10,000 in eligible works, your 4% ICIO tax could drop from €400 to €20.

According to Fundación Renovables, 65% of municipalities with over 10,000 inhabitants have implemented an ICIO rebate linked to self-consumption.

How Much Can I Save?

You can save up to 95% on the ICIO tax required to legally install solar panels in most municipalities in Spain. See below for ICIO tax rebates in towns and cities popular with foreign residents below.

Which solar incentives are available in your region?

Below, you’ll see a quick, region-by-region overview of which solar incentives are available where you live in Spain.

For each autonomous community, we’ll show whether direct solar grants and IRPF income tax deductions are currently available. We’ll also share whether IBI property tax and ICIO tax rebates are offered in popular towns and cities within each region, and what those rebates are worth.

To learn how to apply for each incentive, jump to the next section.

Solar Incentives in Andalusia

Below is a quick overview of the solar incentives available in 2026 in Andalucía, including what’s relevant for homeowners across the Costa del Sol and provinces such as Málaga, Granada, Almería, Córdoba, Cádiz and more.

Incentive type	Available?	Current deadline
1) Direct solar grants (subsidies)	❌	31 Dec 2023 (NextGen residential window)
2) IRPF income tax deductions	✅	31 Dec 2026 (some cases later depending on the deduction type)
3) IBI property tax rebate	📍	Set by each municipality
4) ICIO installation tax rebate	📍	Set by each municipality

Which Town Halls in Andalucia Offer IBI Tax Rebates?

See an overview of town halls and the relevant IBI tax rebates in Andalusia. Solar rebates are decided by each town hall, so the discount and duration vary by municipality.

Last updated: January 2026. We check rebates against data from Fundación Renovables, where available. Always confirm with your town hall before applying.

IBI Tax Rebates in Popular Towns and Cities in Málaga

Municipality	IBI tax rebate	ICIO tax rebate
Alhaurín de la Torre	Not available	Not available
Antequera	Up to 40% off IBI for 3 years – 40% the first year, 30% the second year and 20% the third year	Not available
Álora	Not available	Not available
Benalmádena	Not available	Not available
Coín	Not available	Not available
Cártama	Up to 25% off IBI for 5 years	80% rebate off ICIO installation tax
Campillos	Up to 50% off IBI for 7 years	Unknown
Estepona	Not available	50% rebate off ICIO installation tax
Fuengirola	Not available	50% rebate off ICIO installation tax
Málaga	Up to 15% off IBI for 3 years	95% rebate off ICIO installation tax
Manilva	Not available	40% rebate off ICIO installation tax
Marbella	Not available	95% rebate off ICIO installation tax
Mijas	Not available	Not available
Nerja	Not available	Not available
Rincón de la Victoria	Up to 15% off IBI for 3 years	Not available
Ronda	Up to 30% off IBI for 3 years	Not available
Torremolinos	Up to 50% off IBI for 3 years	Not available
Torrox	Not available	Not available
Vélez-Málaga	Up to 50% off IBI for 3 years	Not available

IBI Tax Rebates in Popular Towns and Cities in Granada

Municipality (Granada)	IBI rebate	ICIO rebate
Almuñécar	Not available	95% rebate off ICIO installation tax
Churriana de la Vega	Up to 30% off IBI tax for 1 year	10% rebate off ICIO installation tax
Granada	Up to 50% off IBI tax for 1 year	95% rebate off ICIO installation tax
Guadix	Not available	Not available
Las Gabias	Up to 35% off IBI tax for 1 year	35% rebate off ICIO installation tax
Motril	Not available	95% rebate off ICIO installation tax
Salobreña	Not available	Not available

IBI Tax Rebates in Popular Towns and Cities in Cádiz

Municipality (Cádiz)	IBI rebate	ICIO rebate
Cádiz	Up to 50% off IBI tax for 4 years	95% rebate off ICIO installation tax
Chiclana de la Frontera	Not available	Not available
Conil de la Frontera	Up to 20% off IBI tax for 3 years	Not available
La Línea de la Concepción	Not available	Not available
Rota	Up to 50% off IBI tax for 5 years	75% rebate off ICIO installation tax
San Roque (Sotogrande)	Not available	Not available
Tarifa	Not available	Not available
Vejer de la Frontera	Not available	50% rebate off ICIO installation tax

IBI Tax Rebates in Popular Towns and Cities in Almería

Municipality (Almería)	IBI rebate	ICIO rebate
Albox	Not available	Not available
Almería	Up to 50% off IBI tax for 3 years	Not available
Cuevas del Almanzora	Not available	Not available
Garrucha	Not available	95% rebate off ICIO installation tax
Huércal-Overa	Not available	65% rebate off ICIO installation tax
Níjar	Not available	10% rebate off ICIO installation tax
Roquetas de Mar	Not available	Not available
Vera	Up to 10% off IBI tax for 3 years	Not available

IBI Tax Rebates in Popular Towns and Cities in Córdoba

Municipality (Córdoba)	IBI rebate	ICIO rebate
Cabra	Up to 25% off IBI tax for unknown years	95% rebate off ICIO installation tax
Córdoba	Up to 50% off IBI tax for 10 years	95% rebate off ICIO installation tax
Lucena	Up to 40% off IBI tax for 5 years	95% rebate off ICIO installation tax
Priego de Córdoba	Up to 50% off IBI tax for 10 years	50% rebate off ICIO installation tax

IBI Tax Rebates in Popular Towns and Cities in Huelva

Municipality (Huelva)	IBI rebate	ICIO rebate
Ayamonte	Not available	Not available
Cartaya	Not available	95% rebate off ICIO installation tax
Huelva	Not available	Not available
Isla Cristina	Not available	Not available
Lepe	Up to 50% off IBI tax for 3 years	50% rebate off ICIO installation tax
Punta Umbría	Not available	Not available

IBI Tax Rebates in Popular Towns and Cities in Jaén

Municipality (Jaén)	IBI rebate	ICIO rebate
Alcalá la Real	Up to 30% off IBI tax for 3 years	95% rebate off ICIO installation tax
Baeza	Not available	Not available
Jaén	Up to 50% off IBI tax for 1 year	Not available
Úbeda	Not available	30% rebate off ICIO installation tax

IBI Tax Rebates in Popular Towns and Cities in Sevilla

Municipality (Sevilla)	IBI rebate	ICIO rebate
Carmona	Up to 50% off IBI tax for 3 years	Not available
Osuna	Not available	Not available
Sevilla	Up to 50% off IBI tax for 3 years	75% rebate off ICIO installation tax

Solar Incentives in Murcia

Below is a quick overview of the solar incentives available in 2026 in Andalucía, including what’s relevant for homeowners in towns like Los Alcázares, Mazarrón, San Pedro del Pinatar, and more.

Incentive type	Available?	Current deadline
1) Direct solar grants (subsidies)	❌	31 Dec 2023 (NextGen residential window)
2) IRPF income tax deductions	✅	31 Dec 2026 (some cases later depending on the deduction type)
3) IBI property tax rebate	📍	Set by each municipality
4) ICIO installation tax rebate	📍	Set by each municipality

Which Town Halls in Murcia Offer IBI Tax Rebates?

See an overview of town halls and the relevant IBI tax rebates in Murcia. Solar rebates are decided by each town hall, so the discount and duration vary by municipality.

Last updated: January 2026. We check rebates against data from Fundación Renovables, where available. Always confirm with your town hall before applying.

IBI Tax Rebates in Popular Towns and Cities in Murcia

Municipality (Murcia)	IBI rebate	ICIO rebate
Alhama de Murcia	Up to 50% off IBI tax for 3 years	90% rebate off ICIO installation tax
Cartagena	Up to 50% off IBI tax for 3 years	50% rebate off ICIO installation tax
Fuente Álamo de Murcia	Not available	45% rebate off ICIO installation tax
Los Alcázares	Up to 50% off IBI tax for 3 years	Not available
Mazarrón	Up to 25% off IBI tax for unknown years	50% rebate off ICIO installation tax
Murcia	Up to 50% off IBI tax for 1 year	95% rebate off ICIO installation tax
San Javier	Up to 50% off IBI tax for 1 year	50% rebate off ICIO installation tax
San Pedro del Pinatar	Not available	Not available
Torre-Pacheco	Up to 50% off IBI tax for 1 year	95% rebate off ICIO installation tax

Solar Incentives in the Valencian Community

Below is a quick overview of the solar incentives available in 2026 in the Valencian Community, including what’s relevant for homeowners in towns like Javea, Denia, Altea, Moraira, Torrent, Torrevieja and more.

Incentive type	Available?	Current deadline
1) Direct solar grants (subsidies)	❌	Application for the grants ended on 27 Feb 2026
2) IRPF income tax deductions	✅	31 Dec 2026 (some cases later depending on the deduction type) NOTE: Valencia has a separate IRPF tax reduction programme, which in theory is compatible with the state tax reduction*
3) IBI property tax rebate	📍	Set by each municipality
4) ICIO installation tax rebate	📍	Set by each municipality

*Please consult a tax advisor for more information.

Which Town Halls in the Valencian Community Offer IBI Tax Rebates?

See an overview of town halls and the relevant IBI tax rebates in the Valencian Community. Solar rebates are decided by each town hall, so the discount and duration vary by municipality.

Last updated: January 2026. We check rebates against data from Fundación Renovables, where available. Always confirm with your town hall before applying.

IBI Tax Rebates in Popular Towns and Cities in Alicante

Municipality (Comunidad Valenciana)	IBI rebate	ICIO rebate
L’Alfàs del Pi	Up to 25% off IBI tax for 6 years	Not available
Almoradí	Up to 50% off IBI tax for 3 years	Not available
Altea	Up to 25% off IBI tax for 3 years	95% rebate off ICIO installation tax
Benidorm	Not available	Not available
Benissa	Up to 50% off IBI tax for 5 years	Not available
Calp	Up to 50% off IBI tax for 5 years	Not available
Dénia	Up to 50% off IBI tax for 5 years	95% rebate off ICIO installation tax
Elche	Up to 50% off IBI tax for 1 year	95% rebate off ICIO installation tax
Guardamar del Segura	Up to 50% off IBI tax for 3 years	Not available
Jávea	Up to 25% off IBI tax for 3 years	95% rebate off ICIO installation tax
La Nucía	Not available	Not available
La Vila Joiosa	Up to 50% off IBI tax for 4 years	Not available
Moraira–Teulada	Up to 50% off IBI tax for 3 years	95% rebate off ICIO installation tax
Orihuela	Up to 50% off IBI tax for unknown years	Not available
Pego	Not available	Not available
Pilar de la Horadada	Not available	50% rebate off ICIO installation tax
Rojales	Up to 50% off IBI tax for 5 years	95% rebate off ICIO installation tax
Torrevieja	Up to 50% off IBI tax for 3 years	Not available

IBI Tax Rebates in Popular Towns and Cities in Valencia

Municipality (Comunidad Valenciana)	IBI rebate	ICIO rebate
Alginet	Not available	95% rebate off ICIO installation tax
Gandia	Not available	95% rebate off ICIO installation tax
Oliva	Up to 50% off IBI tax for 3 years	95% rebate off ICIO installation tax
Paiporta	Up to 50% off IBI tax for 3 years	95% rebate off ICIO installation tax
Torrent	Up to 50% off IBI tax for 1 year	95% rebate off ICIO installation tax
València	Up to 50% off IBI tax for up to 10 years	95% rebate off ICIO installation tax
Vilamarxant	Up to 50% off IBI tax for 3 years	Not available
Xàtiva	Up to 50% off IBI tax for unknown years	50% rebate off ICIO installation tax

IBI Tax Rebates in Popular Towns and Cities in Castellón

Municipality (Comunidad Valenciana)	IBI rebate	ICIO rebate
Benicàssim	Up to 50% off IBI tax for 5 years	95% rebate off ICIO installation tax
Borriana	Up to 20% off IBI tax for 3 years	95% rebate off ICIO installation tax
Castelló de la Plana	Up to 50% off IBI tax for 5 years	95% rebate off ICIO installation tax
Vinaròs	Up to 50% off IBI tax for 5 years	Not available