Energy at home
10% income tax deduction for solar panels in Spain: you have until 31 December 2026
In March the Spanish government approved a new IRPF income tax deduction for anyone installing solar panels on a property they own. It is simple and covers batteries, but only for installations paid for and completed in 2026. Here is how it works, what it can be worth and the details that could make you lose it.
The deduction comes from Royal Decree-law 7/2026 of 20 March, which adds a new provision to the IRPF law. The Spanish Tax Agency sums it up: you can deduct 10% of what you pay to install a renewable self-consumption system on a property you own. And the law expressly says it can include storage systems, in other words the battery.
If you live in a flat and the installation is done on the building, for example on the community roof, the rate rises to 20%.
The maximum base is €5,000 a year. In practice, the maximum deduction is €500 at 10% and €1,000 at 20%. It is not a huge subsidy, but it adds to what you save on your bill from the very first month.
The requirements people overlook
We have read the text published in the BOE and there are five details worth being clear on before you sign:
One: only payments made between 1 January and 31 December 2026 count, and the deduction applies in the year the installation is completed, which cannot be later than 2026. If the work finishes in January, you lose it.
Two: you must pay by card, bank transfer, nominative cheque or deposit into an account. Cash payments do not qualify.
Three: you need the installation permits and, in particular, the Electrical Installation Certificate (CIE). The authorised installer issues it on completion, so the installation must be legalised, not just fitted.
Four: if you receive a grant for the same installation, that amount is taken off the base. And you cannot apply this deduction and the energy-efficiency works deduction to the same installation.
Five: it does not apply to panels used for a business activity. If you are self-employed and the installation belongs to the business, a different route applies.
To claim it for 2026, the installation must be paid for and completed before the year ends.
What if you are not a Spanish tax resident?
We get asked this a lot in Marbella and Estepona. The deduction is part of IRPF, the income tax paid by Spanish tax residents. If you are a non-resident owner, you pay IRNR (non-resident income tax) and this deduction does not apply to you.
That does not change the savings on your bill, which is the main thing. But it is worth knowing before you count on money the tax office will not give back.
If the home is a second residence and you are a tax resident, the law refers to "a property you own", not only your main home. Even so, check your case with your tax adviser.
How long it takes (and why not to wait until December)
Fitting the panels on a home usually takes one or two days. What takes time is everything before: visiting the house, measuring the roof, designing the system, ordering the equipment and processing the legalisation.
If you want to make 2026 with some margin, the sensible thing is to decide in November. And remember that the Junta's grants for panels with batteries are suspended, as we explain in this article, so this year the deduction is what is left.
At Sun System we prepare your study for free and tell you, with dates, whether we can finish before 31 December. Send us an electricity bill or see how we work in Marbella.
