Solar self-consumption is transforming the way we generate and use energy. More people are opting for energy independence and a sustainable model. To encourage this shift, many municipalities have introduced property tax reductions for solar panels.
If you live in Andalusia and are considering installing solar panels, this article will provide all the key details: what the property tax reduction consists of, eligibility requirements, and applicable discounts by province.
1. What Is the Property Tax Reduction for Solar Panels?
The Property Tax (IBI) is a municipal tax levied on real estate in Spain. Under Royal Legislative Decree 2/2004, municipalities have the authority to apply tax reductions of up to 50% on the IBI for homeowners who install solar self-consumption systems.
This incentive is a great way to lower property costs while also accelerating the return on investment in solar energy. However, the percentage and duration of the reduction depend on each municipality, as do the eligibility requirements.
2. Can All Solar Installations Benefit from the Property Tax Reduction?
Not all solar energy installations qualify for this tax benefit, as each municipality sets its own rules. Some of the most common requirements include:
- The installation must be voluntary (not mandated by law).
- The property must be residential, although some municipalities also include commercial or industrial buildings.
- The system must be properly legalized and comply with current regulations.
- The application must be submitted within the deadline set by the local council.
3. Requirements Based on Eligibility Criteria
Municipalities can be categorized into three groups based on the ease of obtaining the property tax reduction:
→ Easily Accessible Requirements
Some councils apply the reduction with minimal conditions—they only require that the installation is registered and that the applicant is the property owner.
Example: Cádiz, Córdoba, and Sevilla (50% reduction).
→ Moderate Restrictions
Other municipalities impose additional conditions, such as requiring the property to be exclusively residential or proving that the system significantly improves energy efficiency.
Example: Granada and Jaén (50% reduction for 1 year).
→ Strict Requirements
Some councils offer a lower tax reduction and only grant it if the applicant meets multiple technical and administrative criteria.
Ejemplo: Málaga (15% reduction for 3 years).
4. How to Apply for the Property Tax Reduction for Solar Panels?
The application process varies depending on the municipality but is usually available through one of the following methods:
√ Online Submission
Through the local council’s electronic office, using a digital certificate or Cl@ve PIN.
√ Municipal Registry Submission
Submitting the required documents at the municipal registry in person or via an online platform.
√ In-Person Submission
Visiting the local citizen service offices with the necessary paperwork.
5. Required Documents for the Application
To process the property tax reduction, most municipalities require:
- Urban Planning License for the solar installation.
- Copy of the Property Tax (IBI) receipt for the property.
- Detailed invoices for the solar panel installation.
- Proof of payment for the Construction, Installations, and Works Tax (ICIO), if required.
6. Property Tax Reduction for Solar Panels in Andalusia: Provincial Breakdown
Here’s a summary of the IBI tax reductions available by province in Andalusia:
6.1 Málaga
Antequera
- % Reduction: Up to 40%
- Years: 3
- Applicable Use: All
- Limitations: First year: 40%, second year: 30%, third year: 20%
Cártama
- % Reduction: 25%
- Years: 5
Málaga
- % Reduction: 15%
- Years: 3
- Applicable Use: Residential
- Limitations: Cannot exceed 33% of the installation cost
Marbella
- % Reduction: 25%
- Years: 5
- Applicable Use: All
Rincón de la Victoria
- % Reduction: 15%
- Years: 3
- Applicable Use: Residential, including co-ownership properties
- Limitations: Cannot exceed 33% of the installation cost
Ronda
- % Reduction: 30%
- Years: 3
- Applicable Use: Residential
- Limitations: Cannot exceed 33% of the installation cost
Torremolinos
- % Reduction: 50%
- Years: 3
- Applicable Use: Residential
- Limitations: Power must be >3 kW/100m²
Vélez-Málaga
- % Reduction: 50%
- Years: 3
- Limitations: Power must be 2.5 kW per 200m²
Fuengirola
- % Reduction: 50%
- Years: 3
- Limitations: Cannot exceed 25% of the installation cost
Alhaurín de la Torre
- % Reduction: Up to 50%
- Years: 2
- Applicable Use: Residential
- Limitations: First year: 50%, second year: 25%
6.2. Almería
Adra
- % Reduction: 50%
- Years: 2
- Applicable Use: Properties owned by companies and real estate firms
Almería
- % Reduction: 50%
- Years: 3
- Applicable Use: Residential
- Limitations: Maximum 33% of installation cost, >2 kW/225m²
El Ejido
- % Reduction: 50%
- Years: 2
- Applicable Use: Only urbanization companies
Vera
- % Reduction: 10%
- Years: 3
- Applicable Use: Residential
6.3. Jaén
Andújar
- % Reduction: 50%
- Years: 4
- Applicable Use: Residential
Jaén
- % Reduction: 50%
- Applicable Use: All
Úbeda
- % Reduction: 30%
- Years: 5
Torredelcampo
- % Reduction: 50%
- Years: 5
Alcalá la Real
- % Reduction: 30%
- Years: 3
6.4. Granada
Las Gabias
- % Reduction: 35%
- Applicable Use: Residential
Granada
- % Reduction: 50%
- Years: 1
- Applicable Use: Residential
Loja
- % Reduction: 30%
- Years: 2
La Zubia
- % Reduction: 50%
- Years: 1
Atarfe
- % Reduction: 50%
- Years: 5
Vegas de Genil
- % Reduction: 50%
- Years: 1
Armilla
- % Reduction: 50%
- Years: 1
Churriana de la Vega
- % Reduction: 30%
- Years: 1
6.5. Huelva
Huelva
- % Reduction: 50%
- Years: 3
- Applicable Use: Residential
- Limitations: Maximum 33% of installation cost
La Palma del Condado
- % Reduction: 25%
- Years: 4
- Applicable Use: Residential
Aljaraque
- % Reduction: 40%
- Years: 10
- Applicable Use: Residential
- Limitations: Maximum power 10 kWp
Moguer
- % Reduction: 50%
- Years: 3
- Limitations: Valid for 2023, 2024, and 2025
Lepe
- % Reduction: 50%
- Years: 3
Gibraleón
- % Reduction: 50%
6.6. Sevilla
Alcalá del Rio
- % Reduction: 20%
- Years: 4
- Applicable Use: All
La Algaba
- % Reduction: 50%
- Years: 3
- Applicable Use: Residential
- Limitations: Maximum 33% of installation cost, >2 kW/225m²
Bormujos
- % Reduction: 50%
- Years: 5
- Applicable Use: All
- Limitations: Pot. >12.5 Wp/m²
Las Cabezas de San Juan
- % Reduction: 25%
- Years: 3
- Applicable Use: Inmuebles urbanos
Carmona
- % Reduction: 25%
- Years: 3
Coria del Rio
- % Reduction: 25%
- Years: 5
- Applicable Use: All
- Limitations: The % reduction depends on the cadastral value of the property
Dos Hermanas
- % Reduction: 50%
- Years: 5
- Applicable Use: Residential
- Limitations: Minimum 50% of electricity supply, maximum €200 discount
Gines
- % Reduction: 30%
- Applicable Use: All
Mairena del Alcor
- % Reduction: 50%
- Years: 7
- Applicable Use: Residential, urban
- Limitations: Power >12.5 Wp/m², max. €300 per year
Pilas
- % Reduction: 20%
- Years: 4
- Applicable Use: All
San Juan de Aznalfarache
- % Reduction: 50%
- Years: 7
- Applicable Use: All
Sanlúcar la Mayor
- % Reduction: 50%
- Years: 3
- Applicable Use: Residential
Sevilla
- % Reduction: 50%
- Years: 3
- Applicable Use: Residential
Tomares
- % Reduction: 50%
- Years: 5
- Applicable Use: Residential
Utrera
- % Reduction: 15%
- Applicable Use: Residential
Los Palacios y Villafranca
- % Reduction:Up to 50%
- Years: 5
- Applicable Use: Residential
- Limitations: 50% reduction for 3 years, then 30% for the following years
Castilleja de la Cuesta
- % Reduction: 50%
- Years: 6
- Limitations: Max. €150 per year for 3 years, then €120 per year
Guillena
- % Reduction: 25%
- Years: 5
Cantillana
- % Reduction: 50%
- Years: 4
- Limitations: Max. 50% reduction, limit of €300
Alcalá de Guadaíra
- % Reduction: 25%
- Years: 4
- Applicable Use: Residential
- Limitations: Power >2 kWp
Morón de la Frontera
- % Reduction: 50%
- Years: 3
- Applicable Use: Residential
- Limitations: Max. €1,000, limited to 50% of the total tax amount
Gelves
- % Reduction: 30%
- Years: 3
Camas
- % Reduction: 50%
Arahal
- % Reduction: 50%
Écija
- % Reduction: 30%
6.7. Córdoba
Aguilar de la Frontera
- % Reduction: 50%
- Years: 5
Cabra
- % Reduction: 25%
La Carlota
- % Reduction:Up to 50%
- Years: 3
- Applicable Use: Residential, including co-ownership properties
- Limitations: Max. 15% of installation cost, depends on energy demand coverage
Córdoba
- % Reduction: 50%
- Years: 10
- Applicable Use: Primary residence
Lucena
- % Reduction: 40%
- Years: 3
- Applicable Use: All, including co-ownership properties
Montilla
- % Reduction: 30%
- Years: 3
- Applicable Use: Residential
- Limitations: Max. 80% of installation cost
Palma del Río
- % Reduction: 40%
- Years: 2
- Applicable Use: Primary residence
- Limitations: Only for single residential property with a solar self-consumption system
Priego de Córdoba
- % Reduction: 50%
- Years: 10
- Applicable Use: Only for commercial premises
- Limitations: Max. 50% of annual tax amount
Pozoblanco
- % Reduction: 50%
- Years: 10
- Applicable Use: Primary residence
- Limitations: Max. 40% of installation cost
Peñarroya-Pueblonuevo
- % Reduction: 50%
- Years: 10
- Applicable Use: Residential
- Limitations: Solar installations must be at least 1 kWh
Puente Genil
- % Reduction: 25%
- Years: 5
- Limitations: Max. 80% of installation cost
6.8. Cádiz
Arcos de la Frontera
- % Reduction: 10%
- Applicable Use: Residential
Cádiz
- % Reduction: 50%
- Years: 4
- Applicable Use: All, including co-ownership properties
- Limitations: Max. €300 per year of installation cost
Jerez de la Frontera
- % Reduction: 25%
- Applicable Use: Residential
Rota
- % Reduction: 50%
- Years: 5
- Applicable Use: Primary residence
- Limitations: Max. €300 per year, 30% of installation cost
San Fernando
- % Reduction: 50%
- Years: 3
- Applicable Use: All, including co-ownership properties
- Limitations: 25% for non-residential use
Chiclana de la Frontera
- % Reduction: 10%
- Years: 6
Puerto de Santa María
- % Reduction: 50%
- Years: 2
The IBI tax reduction for solar panels is a key incentive for self-consumption in Andalusia. Each municipality establishes its own conditions, so it is crucial to check local regulations and submit your application within the given deadlines.
If you are considering installing solar panels and need assistance with the application, at Ubora we help you through the entire process. Contact us and start saving on your electricity bill today! ☀️
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