Installing solar panels in Valencia: everything you should know

One thing is clear in Valencia. It is known as the city of the sun.

Given the province’s reputation for sunny days and clear skies, it is a great option for installing solar panels and producing clean, cheap energy for your home.

As if that weren’t enough, self-consumption systems in the community exceed the expectations set by the ministry and manage to double the installed capacity in a single year.

In addition, with the falling prices of solar modules, the instability of electricity prices and the energy production capacity of the city, homes have the power to save big on electricity costs with a photovoltaic system.

That is why today we are going to tell you if the investment of installing solar panels in Valencia is profitable.

And that is why it is important for you to know:

• Grants and subsidies for self-consumption

• Approximate prices in the province

• Formalities and permits for installation

• Time to recover the investment

We are going to explain all this to you in this post.

Let’s get to it!

Subsidies and grants for solar energy in Valencia

To facilitate the transition to solar energy, there are grants and subsidies for the installation of solar panels in Valencia that encourage the move towards a sustainable and economical energy model.

It is clear that this factor will help to reduce the payback period of the investment and, therefore, has an impact on its profitability.

Here we list and explain them in detail:

• Aid for self-consumption

• Allowances (IBI and ICIO)

• Personal income tax deductions

• Regional subsidies

Next Generation self-consumption subsidies

These are perhaps the subsidies with which you are most familiar.

These European subsidies, subsidised by the State, are processed at a regional level through the Generalitat Valenciana website. All you need is an electronic certificate or, if you are not very good with technology, you can go to their offices.

These European funds are divided into 6 programmes. Here you have all the information.

Which ones are we most interested in?

Programmes 4, 5 and 6, which are related to residential use, both for single-family homes and housing estates.

And don’t delay in applying because they are limited and are offered in order of presentation.

Note: The application deadline for subsidies is 31 December 2023.

It is an item that allows significant savings and reduces the cost of the installation:

• An aid of €600 per kWp in installation and €490/ kWh in battery for systems with less than 10 kWp.

• The subsidies for installations above 10 kWp are between €450 and €300.

IBI rebate for solar panels in Valencia

The IBI rebate for the installation of solar panels in Valencia means a reduction in the payment of local taxes.

In fact, it is one of the subsidies that most favours the profitability of the system.

According to the Fundación Renovables report, here are the five towns with more than 10,000 inhabitants that benefit most from this aid:

• Alboreia

• Bétera

• Carcaixent

• Catarroja

• Sueca

And other municipalities such as Sagunt and Sedaví can reach 10 years of subsidy.

In general, the subsidies in the province are quite favourable.

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Don’t worry about these formalities. We take care of the paperwork.

But before knowing the IBI rebate applicable to your municipality, you should know how much you can save each month.

And for this we leave you here our self-consumption calculator.

ICIO rebate

But you can also get a rebate on the Construction, Installations and Works Tax (ICIO) for installing solar panels in Valencia.

Most municipalities in the province offer a 95% rebate. However, in the following table you can search for your locality and find out the exact percentage of aid received.

Remember: we are only talking about municipalities with more than 10,000 inhabitants.

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Deduction in IRPF for photovoltaic panels in Valencia

And there is another possibility to mention: the deduction in the tax return for the installation of solar panels in Valencia.

Let’s look at the percentages to be deducted:

• 40% of the amount invested in self-consumption installations for the main residence and collective installations (communities of neighbours).

• 20% in installations for second homes, as long as no economic activity is carried out, such as, for example, holiday rentals.

And the requirements for applying this deduction are as follows:

• The components under deduction must be carried out by solar energy installation companies that meet the established requirements.

• In the case of shared self-consumption installations, the deduction can be applied to each of the owners individually according to the corresponding participation coefficient.

• In order to obtain the deduction, the recognition of the autonomous administration is necessary. You will have to apply to the IVACE for the accreditation certificate in order to apply the rebate.

• Do not forget to keep the expense and payment receipts, which must comply with the provisions of the applicable regulations.

In any case, in this section of the Tax Agency you have all the information available.

Prices of solar panels in Valencia

There is one point that you should be clear about from minute one:

The prices of solar panels in Valencia and any other province in the country, not only include the modules themselves.

In fact, there are other elements involved such as the solar inverter, the structure, the cables and electrical material and also batteries (only if they are installed).

But be careful, because we cannot take labour, installation procedures and permits, as well as registration fees, out of the equation either.

All these costs make up the total price of the installation.

This is an essential aspect of the profitability of photovoltaic systems.

Here are the approximate prices based on the dimensions of the installation:

If you want to calculate the budget for your installation, this is the way to go.

The compensation of surpluses as another incentive

Another of the most popular incentives for switching to self-consumption is the compensation of surpluses.

In other words, you can sell the excess energy produced by your panels to your company and receive an economic compensation that you will see reflected in your electricity bill.

Can it help to facilitate the return on investment?

Yes.

But be careful, although it is another incentive to take into account, it will not be the most valuable one.

The price per kWh is around 0.10/kWh. It is therefore lower than the purchase price. However, this figure varies depending on the electricity company.

And there is one more thing you should bear in mind.

You will be compensated up to the point where the variable section of your bill reaches 0 euros. What happens to the remaining part? It will be injected free of charge into the grid. So it is not advisable to size the system to achieve this compensation.

As you can see, you can give energy away to the company.

Installation factors to take into account

Investing in solar panels is an important step and, therefore, the following aspects should be kept in mind:

Condition and orientation of the roof

The appropriate inclination and orientation for the installation of solar panels in Valencia is towards the south with an angle of 30 degrees.

In this way, the modules are able to produce more energy.

In addition to this, if the roof has any damage, the installer should recommend repairs before starting the self-consumption installation.

But what you should be clear about is that the panels will not face north.

Energy production capacity

And here comes the good part.

Because one of the privileges of the Valencian area is the sunlight it receives throughout the year (approximately 2,808 hours) and this implies a high energy production capacity.

In addition, we must add a peak solar hour (HSP) of 5.73. This figure indicates the amount of energy that a surface area receives at a radiation of 1,000 W/m2 for 1 hour, and is relevant for sizing the photovoltaic installation.

The solar radiation received of 2,034 kWh/m2 is not far behind either. In the following graph you can see how it is distributed throughout the year:

Source: re.jrc.ec.europa.eu

Cost versus time

Before making the investment, it is important to know how long you are going to live in the house.

Remember that this is a long-term investment and if you decide to move in a short period of time, you will not enjoy the benefits of solar energy.

In any case, selling the property with your solar panels in the long term will increase the value of the property. A factor that buyers value more and more every day.

Insurance coverage

It is true that solar panels have guarantees, but they do not cover all incidents.

That is why we always recommend taking out insurance for solar panels.

It provides greater security for the installation.

Formalities and permits in Valencia

Most provinces in Spain have simplified the procedures and permits for the installation of solar panels.

And Valencia is one of the geographical areas that facilitate the process. In fact, it only requires a Declaration of Responsibility and does not require a Building Permit.

What do we achieve?

To speed up the bureaucratic phase so that you can enjoy your photovoltaic installation as soon as possible.

In any case, always contact your local council to find out the exact requirements. It may be that in some municipalities they still ask for a licence.

What is the recovery period for self-consumption installations in Valencia?

Now that we know all the information, it is time to make an approximate calculation of the payback period for solar panels in Valencia.

And for this we are going to take examples of installations with and without batteries, and with and without subsidies.

What we can tell you is that, thanks to the climate of the region and the available subsidies, Valencia is a very profitable option for residential self-consumption.

Ways to switch to self-consumption in Valencia

If you want to invest in your solar panels, you have several options to switch to self-consumption depending on the available budget:

• Cash: if you have a large budget and want to own the installation from minute one.

• Financed. Ideally, you should compare the conditions and interest rates offered by banks and then make your decision. Here we tell you how you can finance your panels with us.

• Renting your solar panels (solar subscription): you do not need an initial investment and you will be able to reduce your electricity costs from the very first moment. You will only pay a small monthly fee.

Nowadays, the range of possibilities is wide and if you cannot buy or finance your panels, there is the option of renting the installation.

In this case, the installation company will take care of any incident and carry out the necessary maintenance.

You decide which way to go. Just click on one of the links above.

Are solar panels in Valencia worth the money?

Installing solar panels in Valencia can generate significant savings in electricity, while reducing dependence on the conventional grid and contributing to the care of the environment.

And the reasons why it is a favourable area for self-consumption are clear:

• Sunny climate

• Agile permitting

• High production capacity

• Subsidies with a high percentage bonus

In addition, we advise our customers according to their specific circumstances in order to maximise their savings with a photovoltaic installation.

If you would like us to help you too:

>> Click here and calculate the budget for your solar system with our self-consumption tool.

And start reducing your electricity bill every month.