Solar Subsidies & Savings
Discover all tax incentives and subsidies available for your solar installation on the Costa del Sol, for homes and businesses. Save between 20% and 50% of the total cost.
Residential Subsidies
Tax deductions and municipal incentives for homeowners
IRPF Income Tax Deduction, Up to 60%
1 Jan 2021, 31 Dec 202620% deduction (max €5,000) if your installation reduces heating/cooling demand by 7%. Up to 40% (max €7,500) if you reduce non-renewable energy use by 30% or achieve an A/B energy rating. Up to 60% (max €15,000) for entire residential buildings.
BOE, RDL 19/2021, Art. 1IBI Property Tax Reduction
Ongoing, per municipalityReduction on annual property tax after installing solar panels. On the Costa del Sol this varies between 10% and 50% for 1 to 7 years. Examples: Mijas 50% for 3 years, Estepona 25% for 7 years, Fuengirola 50% for 3 years, Benalmádena 50% for 3 years.
Municipal fiscal ordinances (Ordenanzas Fiscales)ICIO Building Tax, 95% Reduction
Ongoing, per municipalityThe building works tax (ICIO) is normally 2-4% of installation cost. Most Andalusian town halls offer a 95% reduction, cutting it to just €10-20 for a €10,000 system.
Municipal fiscal ordinances (Ordenanzas Fiscales)Calculate Your Savings
Enter your monthly electricity bill and select your municipality to see estimated subsidies and savings.
IBI, Costa del Sol
Source: Municipal fiscal ordinances (Ordenanzas Fiscales) of each municipality
| Municipality | IBI Reduction |
|---|---|
| Mijas | 50%, 3 years |
| Fuengirola | 50%, 3 years |
| Benalmádena | 50%, 3 years |
| Estepona | 25%, 7 years (under review) |
| Torremolinos | 50%, 3 years |
| Marbella | 25%, 5 years (all property types) |
| Málaga | 15%, 3 years |
| Alhaurín de la Torre | 50%, 2 years |
| Ronda | 30%, 3 years |
Business & Commercial Subsidies
For businesses, hotels, retail, agriculture and industry
Commercial and industrial solar installations qualify for significant subsidies in Andalusia. The Junta de Andalucía has launched two major FEDER-funded programmes, INEA (for SMEs, self-employed and agri-food businesses) and INCEA (for industry), replacing the old Next Generation funds. Combined with accelerated depreciation and municipal IBI/ICIO reductions, businesses can recover a large portion of their investment.
INEA Programme 2, SMEs & Self-Employed
13 Mar 2025, until budget exhaustedSubsidies cover 55–65% of the total investment in solar + storage systems, with a minimum subsidy of €6,000 and a minimum project budget of €11,000. For SMEs, large companies (excl. industry) and agri-food businesses. Double energy audit (before and after) is required. Works cannot begin before submitting the application.
BOJA nº 53, Orden 13/03/2025INCEA, Industrial Programme
Apr 2025, 30 Sep 2027Targets industrial companies (validated by CNAE code). Subsidy percentages: small businesses up to 65%, medium 55%, large 45%. Minimum subsidy: €10,000. Projects can reach €100,000+ in subsidies. Requires double energy audit and correct CNAE classification. Works cannot start before application.
BOJA nº 81, Orden 28/04/2025Accelerated Depreciation (Corporate Tax)
Ongoing, permanent fiscal measureBusinesses can apply accelerated depreciation under Article 12.1 of the Corporate Tax Act. Solar installations can be fully depreciated in as little as 7 years (standard: 10% per year, doubled for accelerated). This significantly reduces your corporate tax bill in the early years. Note: the IRPF energy efficiency deductions (20/40/60%) are for personal income tax only, not corporate tax.
Ley 27/2014, Art. 12.1, Impuesto de SociedadesIBI & ICIO, Also for Commercial Properties
Ongoing, per municipalityMunicipal IBI and ICIO reductions also apply to commercial and industrial properties. In Marbella, the IBI reduction is 25% for 5 years and applies to all property types including commercial. The 95% ICIO reduction also applies to commercial installations in most Andalusian municipalities.
Ordenanza Fiscal, Ayuntamiento de MarbellaBusiness Calculation Example: Hotel in Marbella
A 30-room boutique hotel in Marbella installs a 25 kWp solar system with 20 kWh battery storage. Total investment: €35,000. Here's how the subsidies stack up:
Investment
Subsidies & Tax Savings
* INEA subsidy percentages (55–65%) based on Orden 13/03/2025, BOJA nº 53. Accelerated depreciation estimated at 25% corporate tax rate over 7-year period. IBI Marbella: 25% for 5 years per Ordenanza Fiscal municipal. Actual savings depend on eligibility, application timing and available budget.
Business Example 2: Restaurant in Fuengirola
A restaurant with high daytime energy consumption installs a 12 kWp solar system. Total investment: €12,500.
Official Sources
Residential Sources
Commercial & Business Sources
Official Sources & Partners
External links to official sources and partners. MiTechoSolar.com is a brand of Mi Techo Solar.
Which product do you need subsidies for?
Energy certificate & IRPF deduction
The IRPF deduction is calculated on the improvement shown by an energy certificate issued before and after the works.