High electricity price in Spain sees installation of solar panels double in Valencia

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Solar panels on roof

As the electricity price in Spain rises, so the installation of solar panels for own use in the Valencia region is doubling. This is the conclusion of the employers’ organisation for renewable energy Avaesen, as reported by Levante.

The number of self-consumption facility contracts “has doubled” since the price of electricity has spiralled out of control. The government offers non-refundable subsidies of up to 40% for households. Businesses can enter into agreements with promoters who install the panels in exchange for a long-term supply contract; with discounts of 20% on the offers of the traditional providers. Households can depreciate the investment in solar panels in four years.

Solar panels for private homes

Since the end of the spring, the Valencian companies providing solar energy facilities have seen an increase in interest in installations for private households. Marcos J. Lacruz, chairman of Avaesen, sees the rise in installations as a result of three things. Firstly, the doubling is the result of the high electricity bill. Add that to the measures taken by the government to encourage the installation of these facilities, and the fall in the price of solar panels.

Lacruz emphasises families and businesses “have lost their fear of self-consumption. The solar tax has been abolished and the cost of the panels has fallen”.

Ximo Puig’s regional government also opts for the use of renewable energy sources. It encourages self-consumption facilities and the creation of energy cooperatives that share electricity of photovoltaic origin to meet the CO2 reduction obligations.

Financial aid package for private use

In addition, on June 29, the government approved a royal decree to allocate €660 million in financial aid for personal installations. This could be extended to €1,230 million. The Generalitat is responsible for processing these subsidies.

These vary from 15% for a large company to 45% for an SME. Families can benefit from 40% (this increases to 50% in owner communities) and administrations from 70%. Within this aid package, the Valencian Community will receive €67.3 million.

The Pamesa group pioneered the installation of more than 40,000 photovoltaic panels on the roofs of its logistics warehouses. This is the largest self-consumption photovoltaic installation in Europe, following an investment of €15 million. Other companies in the ceramics, textiles, paper and plastics industries are also starting to install solar panels.

Construction of photovoltaic parks

The Ministry of Agriculture, Rural Development, Climate Emergency and Ecological Transition is encouraging the construction of small photovoltaic parks (at a cost of €80,000) that facilitate self-consumption on industrial estates and municipal facilities. “They depreciate in six years, while they have a useful life of 30 years,” say sources at the same ministry.

The Generalitat emphasises the usefulness of such installations for captive use because “in transport alone 30% of energy is lost”. In addition, Europe imposed decarbonisation obligations: 74% of energy produced in Spain must come from renewable sources by 2030.

Savings of between €1,000 and €2,000 per year

The president of the Valencian Renewable Energy Association explained an installation of photovoltaic panels allows a saving of “€1,000 to €2,000 per year” per home. Lacruz again stated that in houses with a high electricity consumption, these installations depreciate over four years. In the case of industry, it is possible for a company to install solar panels in exchange for a long-term power supply contract.


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