Spain Says Hola to Solar

If you feel like you’re constantly shelling out more on bills, you’re in good company. Over 90% of Spanish people think electricity is too expensive. More renewables would bring prices down, not to mention help tackle the climate crisis. However, Spain has been slow to take advantage of resources like abundant sunshine. Things are changing though, and a Barcelona-based company is now leading the charge into the light.

So why, with an average 2,513 hours of sun per year, does Spain only have around 1,000 solar installations, while Germany, not known for its glorious weather, has over one million? Well, apart from the historically high cost, one controversial disincentive in recent years was the infamous impost al sol (sun tax).

According to Holaluz’s Executive President and Co-founder Carlota Pi, only some 25% of energy in Spain comes from renewables, so installing solar means you help make the system that bit greener. Plus, it’s more efficient to consume energy locally than transport it over large distances.

Introduced by the PP in 2015, this charge was levied on those generating and consuming their own electricity. It actually only applied to certain producers and, on the face of it, was intended to ensure they contributed to grid maintenance. However, it was widely believed to penalize any self-consumption to protect profits for big energy companies. Either way, it effectively put people off and sparked an abolition campaign involving consumer groups, ecologists and green energy companies like Barcelona’s Holaluz.

Despite a Supreme Court challenge, the “sun tax” remained in place until the ousting of Rajoy and the PSOE takeover in June 2018. Incoming Minister for Ecological Transition, Teresa Ribera, moved quickly to abolish it in October the same year. In April 2019, she ushered through legislation to incentivize and revitalize self-consumption, bringing Spain more in line with the EU’s 2050 “climate neutral” objectives.

Under new regulations, individuals can now get reductions on their bills if they contribute surplus energy to the system. Even more significant for the 65% of the population that lives in apartments, pending regulatory definition, neighbors in the same building or even street will be able to share an installation. This, plus the falling cost of panels, means we could see them going up across the city in the near future.

Long Term Benefits

From its beginnings as a startup in 2010, Holaluz says it has grown to become the leading installer of solar panels. They report average savings for consumers of €100 a year, installation costs of €5,000 (though it can range from €3,000 to €12,000) and return on investment in seven to 10 years.* They can take care of maintenance and all paperwork, including applying for any subsidies or tax breaks (for example, some councils offer a reduction in the IBI).

If you can’t cover installation costs yourself, there’s the option to “rent” at a fixed monthly rate based on your energy needs for up to 20 years until the costs are paid off (Holaluz say their panels generally last up to 30 years). While you can still save money, note that compelling subsidies or compensation for feeding in only apply when you own the installation.

While individual savings might not seem impressive, it’s important to look at the bigger picture. Obviously green energy benefits the environment, but it’s also good for the economy, being cheaper than what traditional energy companies charge for fossil fuels. According to Holaluz’s Executive President and Co-founder Carlota Pi, only some 25% of energy in Spain comes from renewables, so installing solar means you help make the system that bit greener. Plus, it’s more efficient to consume energy locally than transport it over large distances.

Maybe solar panels aren’t for you yet, but you can still switch to a green electricity provider right now if the bill is in your name or, if renting, your landlord is open to the idea.

Carlota is confident demand for solar panels will only continue to rise, citing a Deloitte study predicting one million Spanish homes will have solar panels before 2030. She says, “This is going to become something normal, like having a dishwasher in your home.” However, there’s a long road ahead to overcome years of negative perceptions, “The main thing that has to happen is a change in the mindset, for people to acknowledge it as a technology that’s already mature, cheap and totally worth it.”

And what happens when we inevitably tire of the current government in a few years’ time? While there are obviously no guarantees, big players like Naturgy (formerly Gas Natural) are coming on board with changing attitudes and rebranding as green. So future governments would also have them to contend with. Carlota says, “You can see incumbent companies such as Iberdrola or Repsol offering solar panels… this is because things have changed and they’re not going to change back.” She believes the changing energy policy is, “Totally aligned with what Europe is doing, and aligned also with the future of the world,” adding, “First comes the change in reality and after comes the regulation, and this is something that is not going to be stoppable at all.”

*Figures are national averages from one company. Actual costs and savings depend on your energy needs and where you live. To find out what the best option is for you, request a personalized study.   

Kate Williams is a freelance writer, editor, translator and Director of The Writer Stuff. She left her native England for Barcelona in 2003 and never looked, or went, back. When she isn’t writing or discovering all the cool stuff going on in the city, she enjoys hiking in the Catalan countryside, kayaking on the Costa Brava, and volunteers at a local animal sanctuary. You can read more by Kate here.