It is not surprising that the government promotes measures to encourage the installation of solar panels, such as grants and subsidies, with the aim of moving towards more sustainable energies and contributing to the environment, while at the same time benefiting citizens’ savings.
In addition to these support measures, such as subsidies for the installation of solar panels and surplus compensation that further reduces electricity costs, many municipalities in Spain offer rebates on Property Tax (IBI) to boost the transition to a greener energy model. Approximately 41% of Spanish municipalities with more than 10,000 inhabitants provide this type of incentive for IBI rebates on solar energy self-consumption systems.
But what is IBI?
IBI is a local tax in Spain levied on the ownership of real estate, such as houses and land, calculated on the basis of the cadastral value and varies according to the municipality. It is paid annually and finances local services such as education, health and infrastructure maintenance.
What bonuses are available and how long does it last?
Again, it all depends on the municipality, but these allowances range from 30% to 50% of the IBI. The duration of the bonus will also depend on the municipality in question, generally varying between 1 and 30 years (in municipalities such as Ceuta or Seville), with a general average of 3 to 5 years.
What are the benefits of this bonus?
This reduction in IBI acts as a backstop to amortise the initial investment in the installation until it becomes profitable. Thanks to this bonus, the return on investment in solar panels can be significantly reduced.
Requirements and application process
The first requirement is that the installation is in operation and has been legalised. In addition, depending on the municipality, there may be extra requirements such as a minimum contracted power ranging from 1.5 kWp to 5 kWp or a minimum investment of 6,000 €.
The rebate is not applied automatically, so, despite registering the installation, you must apply for it at the town hall, either online or in person, along with the required documentation. You can also find information about deadlines on the website of your municipality. It is important to note that it is not possible to apply for this rebate after three years of installation.
We hope you find this information useful and that you will be able to boost your savings. Don’t forget to share it with your friends who also have self-consumption.