Save Between 20–50% – Tax Incentives for Installing Solar Panels in Andalusia, Spain

If someone told you that you could reclaim up to 50% of the costs of your solar installation in Andalusia, would that interest you?

Well, it’s the case for some clients at Marblanc Solar in 2025.

Across the Costa del Sol and the Andalusian region, there are still solar incentives available that could help you save between 20% and 50% of your installation cost.

So how much could you recover?

Below we’ll walk you through the three solar incentives currently available in 2025 – and help you calculate how much you could save.

What Happened to the Grants for Solar Panels in Spain?

If you’re reading this in 2025 then we’re sorry…but you can’t apply for a direct solar grant any more.

Beginning in 2021, NextGeneration EU funding gave an initial €660 million to Spain to help homeowners make energy-efficiency upgrades.

But in Andalusia, direct subsidies ended in 2024.

Why Missing Out on a Grant Isn’t a Bad Thing

There are two reasons not to be disappointed:

• Long delays in payment: Many homeowners waited 2–3 years for grant money, and thousands were refused without a clear explanation.
• Grants reduced other incentives: Any grant payment was subtracted from your personal income tax deductions.

Arguably, the personal income tax deduction (IRPF) is faster and more straightforward.

You can check out some real examples from Spain’s largest Facebook solar group (Aficionados De La Energía Solar – España) with many claiming their rebates arrived within two months of filing their May 2025 tax return.

The 3 Incentives for Installing Solar Panels in Andalusia

Let’s dive into the three solar incentives available to homeowners in 2025.

IRPF – Personal Income Tax Deduction & Rebate

If you’re like most people, you love paying less tax.

So here’s some good news.

For our clients on the Costa del Sol, the IRPF deduction is by far the most valuable incentive.

How much can you save?

• 20% deduction (max €5,000 base): If your solar upgrade cuts heating and cooling demand by 7% or more in your main home or a rental property, based on a certified energy certificate.
• 40% deduction (max €7,500 base): If your upgrade cuts non-renewable energy use by 30% or achieves an “A” or “B” energy rating in your main or rental home.
• 60% deduction (max €15,000 base): For upgrades across entire residential buildings that cut 30% energy use or achieve an “A” or “B” energy rating, based on a certified building certificate.

How does it work?

When filing your Declaración de la Renta, you enter your installation amount, the maximum base, and the deduction type.

See the official Agencia Tributaria guide to IRPF energy-efficiency deductions.

Most clients ask their gestor (tax advisor) to handle this. Then, after filing in May in the year followingh your installation, you’ll either pay less tax or receive a rebate.

NOTE: You must a Spanish tax resident to claim an income tax reduction.

When’s the deadline?

Spain’s government has extended IRPF deductions until 31 December 2026.

Click here to see the official announcement from the Ministry of Housing and Urban Agenda.

IBI – Property Tax Reduction

Installing solar doesn’t just reduce your personal income tax – it can reduce your annual IBI (Impuesto sobre Bienes Inmuebles) property tax.

How much can you save?

Savings depend on three factors:

• How much IBI you currently pay
• The % reduction your town hall offers
• The number of years the reduction applies

Spain’s central government recommends a 50% discount for three years.

But on the Costa del Sol, reductions vary between 10% and 50% and last between 1 and 7 years, depending on your municipality.

IBI Reductions by Municipality (Costa del Sol, 2025)

We went through the 16 most popular towns among our clients, to give you an idea of IBI reductions on the Costa del Sol.

Municipality	Incentive
Alhaurín de la Torre	Up to 50% reduction for 2 years
Antequera	Up to 40% reduction for 5 years
Benalmádena	Up to 50% reduction for 3 years
Cártama	Up to 25% reduction for 5 years
Campillos	Up to 50% reduction for 7 years
Estepona	Up to 25% reduction for 7 years
Fuengirola	Up to 50% reduction for 3 years
Málaga	Up to 15% reduction for 3 years
Manilva	Used to be 30% for 2 years, paused since 2024
Marbella	Used to be 25% for 5 years, paused since 2024
Mijas	Up to 50% reduction for 3 years
Nerja	Up to 50% reduction for 3 years
Rincón de la Victoria	Up to 50% reduction for 3 years
Ronda	Up to 30% reduction for 3 years
Torremolinos	Up to 50% reduction for 3 years
Vélez-Málaga	Up to 50% reduction for 3 years

How does it work?

Every town hall has its own process.

Marblanc Solar provides the documentation, but you must apply directly with your ayuntamiento.

When’s the deadline?

There’s no national deadline.

But note: Marbella and Manilva paused IBI incentives in 2024. Future changes depend on local councils.

ICIO – Work Permit Tax

To install solar panels, you must apply for a licencia de obras from your town hall.

How much can you save?

The licence requires paying ICIO (Impuesto sobre Construcciones, Instalaciones y Obras), usually 2–4% of installation cost.

For a €10,000 system, ICIO is €200–400.

But most Andalusian town halls grant a 95% reduction, cutting this to just €10–20.

How does it work?

Marblanc Solar applies for the licence and pays ICIO on your behalf.

If your municipality offers the reduction, it will appear as a line item in your proposal.

When’s the deadline?

There’s no national deadline, but local councils may choose to pause the incentive.

Check with your town hall for the latest.

Roughly How Much Could You Recover?

Could you really save up to 60%?

Let’s look at an example:

• 7 kW system in Fuengirola costing €7,500
• €3,000 IRPF deduction
• 50% IBI reduction on €1,000 annual tax = €1,500 over 3 years

Total savings: €4,500, or 60% of the installation cost.

Despite grants ending, the result is still outstanding.

But what about your case?

Use our free online solar calculator. In 2–3 minutes you’ll discover:

• Estimated system cost
• Maximum IRPF deduction
• Potential IBI reduction
• Break-even period
• 10-year savings forecast

Get a Definite Answer on Tax Incentives for Your Solar Installation

Unfortunately, we can’t guarantee your exact savings.

As solar installers, we provide the system – but it’s up to you to complete your tax return and town hall forms.

So, what’s the best approach?

We recommend getting a detailed quote, then consulting:

• Your gestor or tax advisor
• Your local ayuntamiento

That way, you’ll have complete clarity before committing.

Click here to get a quote from Marblanc Solar, including a drone roof inspection, savings analysis, and side-by-side system comparison.