If you own a villa in Murcia or on the Costa Blanca and you have been wondering whether there are still solar grants in Spain in 2026, and whether any of them apply to you as a foreign owner, this guide is for you. There is a new tax incentive this year that expires on 31 December, and the most important question is not what it is, but whether you can actually use it.
Below we set out what is available, who qualifies and the dates that matter, with links to the official sources so you or your adviser can check them.
1.The short version for expat owners
The large direct grants for home solar funded by the EU recovery programme are closed to new applications. In 2026, help comes mainly through three routes:
check Spanish income tax (IRPF) deductions, national and regional (both the Region of Murcia and the Valencian Community have their own). check Town hall discounts on IBI (the annual property tax) and, in some towns, on the building works tax (ICIO). check Occasional regional schemes, which open and close and need watching.
The key point for many of our clients: income tax deductions only help if you pay Spanish income tax as a resident. If you are a non-resident owner filing under IRNR (the non-resident income tax), these deductions generally do not apply to you. Town hall discounts, on the other hand, are linked to the property, not to your tax status.
2.Are you a Spanish tax resident? Start here
This is the question that decides almost everything, so it is worth being clear:
| Your situation | IRPF deductions | Town hall IBI discount |
|---|---|---|
| Tax resident in Spain (main home here) | check Potentially yes | check Yes, if your town offers it |
| Tax resident in Spain, villa is a second home | check Some of them | check Yes, if your town offers it |
| Non-resident owner (IRNR) | close Generally no | check Yes, if your town offers it |
Tax residence is a matter for your tax adviser, not for us, and it depends on more than how many days you spend here. If you are planning to move to Spain full time, the timing of your installation may be worth discussing with them. We set out the wider picture for foreign owners in our guide to going solar in Spain as a non-resident.
3.New in 2026: the self-consumption income tax deduction
Royal Decree-law 7/2026, published in Spain’s Official State Gazette (BOE) in March, created a new IRPF deduction for renewable self-consumption systems. According to the Spanish Tax Agency summary and the decree itself:
- 10% of the amount you pay for a system on a property you own (20% for owners in a predominantly residential building).
- Maximum base of 5,000 euros per year, reduced by any grant received.
- Only amounts paid between 1 January and 31 December 2026 count.
- The system may include storage, so a battery can be part of it.
- It must be properly legalised, including the electrical installation certificate (CIE) where required, and must not be used for a business activity.
In practice, the payment date is what matters. A system paid for before New Year’s Eve may qualify; one paid in January, under current rules, would not. Our electrical certificates page explains the paperwork we handle for you.
4.Energy efficiency deductions (20% and 40%)
The same decree extended the existing energy efficiency deductions until 31 December 2026: 20% (base up to 5,000 euros) for reducing heating and cooling demand by at least 7%, and 40% (base up to 7,500 euros) for cutting non-renewable primary energy use by at least 30% or reaching an A or B rating.
These apply to your main home or a rented property, and require an energy certificate before and after the works, the second issued before 1 January 2027. They cannot be combined with the new self-consumption deduction for the same installation, so your adviser will need to choose the better route for your case.
5.Villas in the Vega Baja: the Valencian regional deduction
If your villa is in the Valencian Community, for example in Torrevieja or Pilar de la Horadada, and you are tax resident there, there is also a regional deduction, as described in the Tax Agency manual:
- 40% of the investment for your main home, 20% for another home not used for business.
- Maximum base of 8,800 euros per home per year, with any unused amount carried forward for four years.
- The system must be registered in the Valencian self-consumption register, and payment must be by bank transfer or card, never cash.
It is generous, but again, it is for Valencian tax residents only.
6.Villas in the Region of Murcia: the Murcian regional deduction
The Region of Murcia also has its own regional deduction for renewable self-consumption systems, and it can be substantial. According to the Tax Agency manual:
| Taxable income (individual return) | Taxable income (joint return) | Deduction |
|---|---|---|
| Up to 35,000 € | Up to 50,000 € | 50% |
| 35,000 to 45,000 € | 50,000 to 75,000 € | 37.5% |
| 45,000 to 60,000 € | 75,000 to 95,000 € | 25% |
| Over 60,000 € | Over 95,000 € | None |
- It applies to the amount paid in the year, minus any grants, with a maximum deduction of 7,000 euros.
- Only for your main home or a rented home (where letting is not a business activity) located in the Region of Murcia.
- The invoice must come from an authorised installer, payment must never be in cash and, where required, the installation’s responsible declaration must have been filed.
- Any amount you cannot use in the year can be carried forward for two years.
As a regional deduction, it is for tax residents of the Region of Murcia. Note that taxable income includes savings income, so at higher incomes the percentage falls or disappears.
7.Town hall discounts: available to every owner
This is the incentive most expat owners can use. Many town halls offer a discount on IBI for homes with solar. San Pedro del Pinatar’s IBI bylaw, for instance, provides a 50% discount for the first tax year after installation, applied for by 31 March and subject to the municipal works licence.
Each town sets its own percentage, duration and deadline, so check the current bylaw for San Javier, Los Alcázares or wherever your villa is. The discount is never automatic: someone has to apply for it. We prepare the technical documentation; your gestor or you file the request.
The Region of Murcia has also announced a regional self-consumption aid scheme for 2026. Its exact conditions, and whether it is open at any given time, should be checked on the official website.
8.Thinking about an electric car?
The decree also extended to 31 December 2026 the national 15% deduction for installing an EV charging point, with a maximum base of 4,000 euros a year. It covers the charger, labour and any necessary adaptations, and the installation must be completed before the end of 2026.
In the Region of Murcia there is also a regional deduction of 100% of the cost of the charging point, up to 4,000 euros per installation and taxpayer, minus any public aid. It must be on a property you own or in your space in a communal garage, for private use, and kept in operation for at least two years. Your adviser can confirm how it combines with the national deduction. The same residency rules apply to both. If you are fitting solar and drive (or plan to drive) an EV, it makes sense to plan both together. See our EV charger installation page.
9.Key dates
- By 31 December 2026: payment for the national self-consumption or efficiency deductions, and EV charger installation completed for the 2026 national deduction.
- Before 1 January 2027: the post-works energy certificate, if using the 20% or 40% deduction.
- By 31 March (San Pedro del Pinatar): IBI discount application. Check your own town’s deadline.
- Spring 2027: Spanish income tax return, where 2026 deductions are claimed.
One honest word of advice: do not rush an installation just for a tax break. A poorly sized system costs you more over 25 years than any deduction saves. But if you had already decided, this autumn is a sensible time to move. For what a well-designed system can realistically save, read how much a villa on the Costa Blanca can save with solar.
10.Frequently asked questions
10.1.Are there solar panel grants in Spain in 2026?
The EU-funded direct grants for homes are closed to new applications. In 2026 the main incentives are income tax deductions (national, plus the regional deductions of Murcia and the Valencian Community) and town hall IBI discounts. Regional schemes are announced from time to time and should be checked on official websites.
10.2.Can I claim the Spanish solar tax deduction as a non-resident?
Generally not. IRPF deductions are for Spanish tax residents. Non-residents taxed under IRNR do not usually have access to them, though they can still apply for town hall discounts. Confirm your position with a tax adviser.
10.3.Does a battery qualify?
The national self-consumption deduction includes storage when it is part of the installation. Keep all invoices and proof of payment.
10.4.My villa is a holiday home. Does that matter?
If you are a Spanish tax resident, the new national deduction refers to properties you own, not only your main home, and the Valencian deduction allows 20% for homes other than your main residence. The Murcian regional deduction and the 20% and 40% efficiency deductions are limited to your main home or a rented property.
10.5.Will someone handle the paperwork for me?
We take care of the technical side: design, installation, the electrical certificate and registration. Your tax adviser or gestor applies the deductions and discounts, and we provide them with everything they need.
The information in this article has been checked against official sources at the time of publication. Tax rules change and every case is different: please confirm your situation with a tax adviser before making decisions.
11.Get clear numbers before the year ends
If an installation this year makes sense for you, the first step is knowing what system suits your villa and how you use it. We prepare a study based on your bills, in English, and leave the documentation ready for your adviser, whether you are here or abroad.
It is free and there is no obligation.