Prices & Grants for Solar Panels in Malaga (2024)

Did you know…you can get back up to 60% of the costs of installing solar panels in Malaga in 2024?

This doesn’t mean you’ll get a 60% discount.

Instead, you’ll get this back via:

• A tax reduction in your annual tax return (declaración de la renta)
• A reduction in your annual property tax (IBI)
• A solar grant available only in Andalucía

But the amount you can expect depends on a few factors. In this article, we will cover each of these factors to give you a better idea.

NOTE: The solar grant in Andalucía is available until December 2024 – so read on!

Table of contents

Prices to install solar panels in Malaga
Factors that influence the price of a solar installation
The key to a solar panel installation: the break even
Grants for solar panels in Malaga
Solar incentives at the town hall level in Malaga
Property tax break (IBI) for solar panel installations in Malaga
IAE Tax Break
ICIO tax break for solar panel installations in Malaga
Solar incentives from the Junta de Andalucía
IRPF tax rebate for solar panel installations in Malaga
Plan Eco Vivienda solar panel grant in Andalucía
How to ensure you get the solar grants available in Malaga
FAQ

Try the solar break even calculator

This article covers all you need to know about the prices & grants of solar panels in Malaga in 2024.

If you want to find out your estimated:

✔ Annual electricity savings for the next 10 years with solar panels
✔ Property tax reduction (IBI) in Andalucia
✔ Plan Eco Vivienda grant
✔ IRPF tax rebate
✔ Years to reach break even on a solar installation in Malaga

Then click below to find out online in 2-3 minutes:

Try the Calculator

Prices to install solar panels in Malaga

The prices of a photovoltaic installation can vary quite a bit.

Prices for an installation range from the lowest, around €2,000, to the highest, which can exceed €15,000.

And of course…

The cheapest installation will include a basic system with limited production. While the most expensive will offer a more advanced system, with greater savings and with labor and system legalization provided by professionals.

So, the next question: “What would be the appropriate price for a solar installation for me?”

Below we will look at the 5 factors to take into account.

Solar kits like this one from a popular online shop can start from €2,000. But you’ll have to assemble it yourself, without access to subsidies or feed-in tariffs, and with limited production. That’s why this example above is only suitable for a rural house with no mains connection and that’s not inhabited in all year round.

The falling price of solar panels

It’s worth noting that solar panel prices have seen a dramatic drop since the beginning of the 21st century.

In 2000, the average price of a solar panel was around €1000.

Today, it’s possible to find quality panels for less than €200.

Also, the power output of solar panels has increased. A few years ago, an average solar panel had a maximum power output of around 250 watts, whereas now it’s common to find panels with power outputs of 350 watts to 600 watts.

So, what does this mean?

To give an example, while in 2000 a square metre of solar panel could power a small light bulb, it could now power a fridge, flat-screen TV and several light bulbs for hours.

Prices have never been better for buying solar panels in Málaga.

In fact, it’s estimated that we won’t see such a drastic reduction in the price of a solar panel again until the mid-2040s.

However, the final price of a solar panel installation depends on more factors than just the panels themselves.

The price per watt has fallen from around $5 in 2000 per watt to $0.20 in 2020. Data according to the IEA.

Factors that influence the price of a solar installation

1. The size of the system

One of the most important factors influencing the price of a solar installation is the size of the system.

This is determined primarily by your current energy consumption.

The higher your consumption, the more solar panels you’ll need to meet your demands.

A larger system, of course, means a higher initial investment. But it will also allow you to generate more electricity and save more in the long run.

So…what size would be best for you?

You need to find the right balance between the size of the system and your budget to maximise the benefits of your solar installation.

Look below for an idea of the size ranges and annual savings.

This estimate assumes a price of €0.15 per kWh, which was the average price in June 2024 according to Expansión. Your actual savings will depend on your electricity tariff, whether you are paid for excess energy, your consumption, the maintenance of the components, and other factors.

2. Additional costs of a solar installation

A typical solar installation is composed of several essential elements:

• Solar panels – 100€-400€/panel
• Solar inverter – 400€–1.800€
• Mounts 400€-1.200€
• Cabling, surge protection and energy metre 400€-1.200€

The cost of each component contributes to the total price of the installation.

For a standard single-family home in Spain, a basic solar system could have an approximate cost breakdown as follows:

• Solar panels: 25% of the total
• Solar inverter: 20% of the total
• Mounts: 15% of the total
• Cabling and materials: 15% of the total

In some cases, it may be beneficial to include storage batteries in your solar system as well.

This can add between €2,000-€10,000 to your budget.

While this represents a higher initial cost, it can generate long-term savings, especially if you have high electricity consumption, such as for charging an electric vehicle.

Another factor to consider is the size of the inverter.

Some homeowners choose to install a smaller inverter initially to reduce costs.

However, it’s important to keep in mind that inverters have a maximum energy production capacity. If you add more panels than the inverter can handle, a phenomenon known as “clipping” will occur, which reduces the efficiency of the system.

But components aren’t all you’ll find on an invoice…

If you charge an electric car at home, you are likely to save more in the long-run by installing a solar battery.

3. Other costs you’ll see in a solar installation quote

In addition to the cost of the components, there are other significant expenses to consider in a solar installation budget.

These expenses are:

• Labour: €1,000-€3,000
• Legalisation and bulletin: €300-€600

As you may have noticed, the components don’t add up to 100% of the costs of a solar panel installation in Malaga.

So, a more complete breakdown could be:

Remember: this is a rough estimate.

There’s often a question about the need for legalisation and the bulletin.

Is it necessary?

Legalising a solar installation involves obtaining the necessary permits and completing the relevant administrative procedures.

This requires the signature of a qualified technician.

And the lack of legalisation means you can’t get any grants, rebates, or tax breaks.

You also won’t be able to switch your electricity tariff to one that pays for energy sold back to the grid.

Therefore, it’s essential to be informed about all associated costs before installing a system.

4. The difficulty of the solar installation

The complexity of a solar panel installation can significantly influence the final price.

Specifically, it can increase the costs of wiring, additional components, and/or labour.

Some factors that can increase costs include:

• Roof type: Curved tile roofs or those with a non-optimal pitch may require more complex and expensive mounting structures.
• Roof orientation: A non-ideal orientation of the solar panels can reduce energy production and, in some cases, may require more expensive solar tracking systems.
• Ground-mounted installation: Mounting solar panels on the ground is usually more expensive due to the materials required for the support structure and excavation work.
• Need for optimizers: If the roof has different sections with varying orientations, it may be necessary to use optimizers to optimize energy production, which increases the cost of the installation.

5. Guarantees and performance

It’s not all about the price of a solar panel.

There are two more things to consider:

• Warranty
• Lifespan

The performance of solar panels gradually decreases over time due to material degradation.

But the rate of degradation varies depending on the quality of the panel.

For example, a low-cost Chinese-made solar panel can experience a performance loss of 5-10% in the first 15 years. Whereas a high-quality European solar panel, like those used by Ubora Solar, may have a performance loss of less than 5%.

And as an example…

Imagine that, 15 years after buying a system, the performance drops so much that you have to finance another installation.

On the other hand…Imagine that, 15 years after buying a system, the performance remains high and you can enjoy the same installation for another 15 years.

That’s the case with the double-glass SolarWatt panels that we use at Ubora Solar.

And not only that…

But the performance is covered by a guarantee for these 30 years!

In case of problems such as microcracks, hail, or overload damage, a solid warranty can guarantee the replacement of the affected panel.

Of course, choosing high-performance solar panels in Malaga with a warranty will increase the price in your budget. But at the same time, your savings will be much greater too.

The double-glazed solar panels from the German company SolarWatt come with a 30-year performance guarantee. Above, you can see an installation of these solar panels in Malaga carried out by Ubora Solar.

The key to a solar panel installation: the break even

Behind the price of a solar panel installation is the concept of break even or payback period.

This is the time it will take to recoup your initial investment through savings on your electricity bill.

With solar panels, payback period is sometimes more important than the price.

Let’s take a look.

A high-quality solar system can pay for itself in as little as 3-4 years, while a cheaper system may take between 5 and 10 years.

Let’s analyse two scenarios:

• Low-cost solar system: A low-cost system seems attractive initially, but it’s important to consider factors such as a shorter lifespan, lower performance, higher electricity bills, and potential risks like the need to replace components, lack of warranty coverage, and difficulties in accessing incentives.
• High-quality solar system: Although the initial investment is higher, a high-quality solar system offers numerous benefits, such as a longer lifespan, optimal performance, significant energy savings, and access to incentives and subsidies.

In summary, the price of solar panels in Malaga is an investment in your future.

Opting for a quality system can generate substantial long-term savings and contribute to greater energy independence.

At the same time, you need an installation that suits your budget.

In the next section, we will explore in detail the subsidies and grants available for solar panel installation in Malaga.

They may help you get a more powerful system than you thought possible.

Want to see if you could get back 60% on a solar installation in Malaga?

Try our new Solar Break Even Calculator that’s updated with the available solar grants in 2024.

In 2-3 minutes get an online estimation of your:

✔ Annual electricity savings for the next 10 years with solar panels
✔ Property tax reduction (IBI) in Andalucia
✔ Plan Eco Vivienda grant
✔ IRPF tax rebate
✔ Years to reach break even

Try the Calculator

 Grants for solar panels in Malaga

There are three main types of incentives for installing solar panels in Malaga:

• Tax breaks
• Tax rebates
• Grants

When combined, depending on your situation, these incentives can cover up to 40-60% of the installation cost.

However, it’s important to note that the authorities responsible for granting these incentives can vary depending on the municipality.

Solar incentives at the town hall level in Malaga

Property tax break (IBI) for solar panel installations in Malaga

One of the most interesting incentives for homeowners in Malaga is the reduction in the payment of the Property Tax (IBI).

The IBI is a tax that must be paid by owners of urban and rural properties on an annual basis.

In the province of Malaga, there are municipalities like Marbella, for example, which has one of the highest property taxes in Spain.

Average annual payments can exceed €1,000 in some areas.

At Ubora Solar, we’ve had a client in Marbella who received a property tax break worth €5,625 over 5 years!

However, the IBI rebate varies depending on the municipality.

To find out the exact percentage of reduction and the number of years it applies, consult the following table:

Requirements to Get the IBI Tax Break

To be eligible for this tax break, certain requirements must be met, including:

• First application: This must be the first time you have applied for the rebate.
• Minimum consumption: Sometimes, the percentage of solar electricity you consume must exceed a certain minimum set by the local council.
• Maximum installation size: Occasionally, the total power of the solar installation cannot exceed a limit set by the municipality.
• Deadlines: The application must be submitted before the 1st of February each year to apply for that year and subsequent years.
• Property type: The property must be residential.
• Installation registration: You must provide proof of registration of the system with the competent authority.
• Maximum rebate amount: Sometimes, the total annual rebate cannot exceed a certain percentage of the installation cost, as determined by the local council.
• Documentation: A detailed invoice for the photovoltaic installation must be provided.
• Owners’ associations: For properties in communities, the application must be submitted by the legal representative.
• Property registration: The property must be registered in the property registry and be free of any charges.
• Minimum size: Sometimes, the installation must have a minimum surface area of 4m².

Please note: These requirements may vary depending on the municipality, so it is essential to consult local regulations for specific details. Above, we have included links to the regulations or approval in each municipality. Some councils opt for the state regulations, which entitle you to a 50% rebate for three tax periods, without the need for it to be included in their local bylaws.

In the case of one of Ubora Solar’s clients in Marbella (above), the property owner secured a property tax break worth €5,625 over 5 years.

IAE Tax Break

The Tax on Economic Activities (IAE) is a tax that must be paid by all individuals or entities carrying out business, professional or artistic activities in Spain.

So, if you can’t get the IBI rebate, maybe you can get this incentive.

In the municipality of Malaga, this rebate consists of a 10% reduction in the actual cost of installing your system, with a limit of 50% of the annual IAE tax quota.

Requirements to get the IAE tax break

Tax policies can vary significantly between municipalities.

However, there are some common requirements:

• Timely application: The application must be submitted within the first month of the year in which you want to apply the rebate.
• Detailed invoice: A detailed invoice for the installation is required.
  Technical certificate: A technician or engineer must certify the installation.
• Registration in the Installation Registry: The installation must be registered in the corresponding registry of the Junta de Andalucía.
• Up-to-date tax payments: The company must be up-to-date with its tax obligations.

Remember: These are general requirements and may vary according to the regulations of each municipality. The above rebate is an example from the City of Malaga.

ICIO tax break for solar panel installations in Malaga

The Construction, Installation, and Works Tax (ICIO) is a municipal tax that is applied to any construction, renovation, or installation that requires a municipal license.

In the case of solar panel installations, this tax is calculated on the total value of the work.

How much could the ICIO cost for a solar installation in Malaga?

Generally, a percentage is applied to the taxable base, which usually ranges between 4% and 7%.

For example, if the cost for your solar installation is €10,000, and the tax rate in your municipality is 5%, the ICIO to be paid would be €500.

However, many municipalities in Malaga offer rebates on the ICIO to encourage the installation of solar panels.

The rebate is usually 95%.

So, if the budget for your solar installation is €10,000, and the tax rate in your municipality is 5%, the ICIO to be paid would decrease from €500 to €25.

Requirements to obtain the ICIO rebate

To be able to benefit from the ICIO rebate, you will generally need to meet the following requirements:

• Project: A qualified technician must prepare a project to submit to the city council.
• Timely application: You must submit the rebate application within the deadline set by the city council.

Important: The specific requirements may vary slightly between different municipalities. The ICIO rebate is usually 95%. However, we recommend that you consult the tax ordinance of your municipality to find out all the details.

Solar incentives from the Junta de Andalucía

IRPF tax rebate for solar panel installations in Malaga

Personal Income Tax (IRPF) is a direct tax levied on the income obtained by tax residents in Spain.

However, if you install solar panels, you can reduce your taxable income for IRPF purposes.

The maximum deduction in 2024 is €3,000.

But the deduction in your annual income tax return depends on the amount of investment made, as it is set at 60% up to a maximum base of €5,000.

You can see the table from the Junta de Andalucía below (in Spanish).

Requirements to claim the IRPF tax rebate

To be eligible for this reduction, the following requirements must be met:

• Installation date: The solar panel installation must have been completed and paid for before 31 December 2024.
• Energy certificate: A reduction of at least 30% in the consumption of non-renewable primary energy – or obtaining an energy rating of “A” or “B” – is required. This is justified by an energy certificate of the property after the installation, which must be issued before 1 January 2025.
• Property type: The deduction can be claimed for installations in all types of housing, except for housing used for economic activities. It can be claimed for works in owners’ communities, and the base is calculated according to the contributor’s participation coefficient in the work.
• Self-consumption: The solar system must be exclusively for self-consumption and cannot generate income from the sale of surpluses to the electricity grid.
• Taxable base: The costs of labour, project drafting, equipment and materials, and the issuance of energy efficiency certificates are considered part of the taxable base.
• Other subsidies: If you receive a grant such as the Eco Vivienda Plan, you must deduct the amount from the taxable base for the deduction.

Remember: A solar panel installer in Malaga like Ubora Solar can help you with all the documentation and legalisation to process the IRPF deduction. However, you must submit the application yourself when filing your income tax return.

If you have questions about the amount of the deduction, you should ask your tax advisor.

Plan Eco Vivienda solar panel grant in Andalucía

The Eco Vivienda Plan is a government grant scheme designed to promote energy efficiency and sustainability in Spanish homes.

Funded by Next Generation EU funds, this plan offers subsidies to homeowners’ associations and owners of single-family homes for carrying out energy efficiency improvement works.

For individual homes, the subsidy can reach up to 40% of the total installation cost, up to a maximum of €3,000.

The deadline for applying for these grants has been extended to 26 December 2024.

The grant can be claimed for interventions such as:

• Improving insulation on facades and roofs
• Installing renewable energy systems, such as solar panels, solar water heaters, air-source heat pumps or biomass boilers
• Replacing windows or lighting systems

For building rehabilitation (whether a house or a block), there are subsidies between 40%, 65% and 80% of the work, depending on the savings in non-renewable energy consumption.

For homeowners’ associations, the maximum amount is €18,800.

The amount of the subsidy may vary depending on the type of work carried out and the income of the applicant.

You can consult the Eco Vivienda Plan programmes on the Junta de Andalucía website.

Requirements to Obtain the Eco Vivienda Plan Grant

To be eligible for the Eco Vivienda Plan grants for homes, you must meet a number of requirements, including:

• Ownership: You must be the owner or holder of real rights over the property.
• Residence: You must habitually reside in the property that is the subject of the works.
• Energy Saving: You must justify a saving of at least 30% in the consumption of non-renewable energy. This is justified with an energy certificate before and after the work.
• Upfront Payment: You must finance the installation before justifying it and obtaining the grant.

Remember: Ubora Solar, as a solar panel installer in Malaga, can help you with the management of the Eco Vivienda Plan grant. We have already helped homeowners and owners’ associations in Malaga with the process and justification. We also consider this grant in any quote for a photovoltaic installation. If you would like to request a quote for your home, click here.

How to ensure you get the solar grants available in Malaga

As you may have noticed, the world of grants, tax rebates and tax breaks related to solar panel installation can be complex.

Each municipality has its own regulations and requirements.

The administrative procedures can be long and tedious.

Therefore, having the support of a competent solar panel installer in Malaga can be very helpful.

For incentives at the municipal or regional level, it is essential to have all the necessary documentation, such as detailed invoices, technical certificates, and proof of the legalisation of your installation.

At Ubora Solar, we understand the importance of maximising our customers’ savings.

That’s why we offer a comprehensive service that includes advice and support in processing all available grants and subsidies.

In fact, we have done this hundreds of times for our customers.

Want to see if you could get back 60% on a solar installation in Malaga?

Try our new Solar Break Even Calculator that’s updated with the available solar grants in 2024.

In 2-3 minutes get an online estimation of your:

✔ Annual electricity savings for the next 10 years with solar panels
✔ Property tax reduction (IBI) in Andalucia
✔ Plan Eco Vivienda grant
✔ IRPF tax rebate
✔ Years to reach break even

Try the Calculator

FAQ

How much is the subsidy for installing solar panels in Malaga?

The amount of the subsidy for installing solar panels in Malaga can vary significantly depending on several factors, such as the type of installation, the municipality where it is carried out, and the aid plan accessed.

Some grants, such as the Eco Vivienda Plan, offer percentages of the total cost of the work, while others, such as the IRPF reduction, are calculated based on the investment made.

How much will the subsidies save me?

The savings generated by the subsidies will depend directly on the amount of aid obtained and the total cost of the installation. Some subsidies can cover a significant part of the initial cost, significantly reducing the payback period of the investment.

As a guide, the maximum saving you can achieve with subsidies in Malaga ranges between 40-60% of the installation price.

How long does it take to receive the solar panel subsidy?

The processing time for subsidies can vary depending on the complexity of the project and the public administration responsible for managing the aid.
In general, the process can take several months from the submission of the application to the final resolution.

How much tax do I have to pay on a solar panel subsidy?

Subsidies for the installation of solar panels are not taxable income.
However, it is important to note that some grants may generate tax deductions in your income tax return, which translates into savings on tax payments.

Is it profitable to install solar panels in Malaga?

Yes, installing solar panels in Malaga is highly profitable thanks to the abundant solar radiation, high electricity prices, and the various grants and subsidies available.

In addition to saving on your electricity bill, solar installations increase the value of your home and contribute to the sustainability of the planet.

What grants are available for installing solar panels?

There are various grants available for installing solar panels in Malaga, such as the IRPF reduction, the Eco Vivienda Plan, municipal rebates on the ICIO, and other regional subsidies.

Each of these grants has its own requirements and conditions.

How much does it cost to install solar panels in Malaga?

The cost of installing solar panels in Malaga varies depending on several factors, such as the size of the installation, the technology used, and the materials employed.

Prices for an installation range from the lowest, around €3,000, to the highest, which can exceed €15,000.

It is advisable to request several quotes from different installation companies to compare prices and conditions.

Click here to get a Personalised Study from Ubora Solar.

What fees must be paid to install solar panels on a house?

In addition to subsidies, there are some municipal fees that must be paid for the installation of solar panels, such as the ICIO (Construction, Installation and Works Tax).

However, many municipalities offer rebates on this tax to encourage the installation of renewable energies.

What are the requirements for applying for solar panel subsidies in Malaga?

The requirements for applying for solar panel subsidies can vary depending on the grant and the municipality.

In general, the following requirements are usually required:

• Being the owner of the property
• Meeting the requirements of the energy efficiency certificates
• Having proof of the legalisation of your system
• Submitting a detailed invoice or budget
• Being up-to-date with payments to the municipality

For more precise and up-to-date information on the available grants in your municipality, we recommend that you contact a specialised solar energy installation company or consult your municipality’s website.