Financial Assistance for Self-Consumption in the Valencian Community
In the Valencian Community, you can benefit from various types of financial assistance for self-consumption and thus enjoy solar energy. These measures align with sustainable development goals aimed at decarbonizing the economy and production models.
Types of Subsidies for Installing Solar Panels
In the Valencian Community, there are three different classes of subsidies for installing solar panels:
- European Next Generation Funds
- Regional Subsidies (Application process closed since April 29, 2022)
- Tax Deductions and Fiscal Incentives
The agency responsible for managing self-consumption assistance is the Valencian Institute of Business Competitiveness (IVACE).
The Valencian Community has an average sunlight exposure 7% higher than the national average, making self-consumption installations in this region a great opportunity for savings and environmental help. The subsidies for solar panels in Valencia make it even more advantageous.
Next Generation Subsidies for Solar Panels in Valencia, 2023
From these subsidies, the Valencian Community will distribute a total of about 84 million euros, potentially subsidizing your installation by up to 55%. It’s a state-level aid package, individually managed by each autonomous community. These subsidies are intended to finance the total cost of the solar panels installation.
Renewable energy promotion subsidies in the Valencian Community have added an extra €17,082,034 after the first €42 million allocation was exhausted. This aims to support the economy of its inhabitants, promote energy efficiency, and reduce environmentally harmful emissions.
These subsidies cover up to 40% for private homes and up to 45% for companies.
Additional Support for Demographic Challenges
All subsidies will be increased by 5% in municipalities with less than 5,000 inhabitants and in rural areas with less than 20,000 inhabitants where different population centers have fewer than 5,000 inhabitants.
In June 2022, the Valencian Government received an additional €17 million allocation after exhausting the initial €42 million. This funding is for developing self-consumption aids, from the European Union’s NextGenerationEU funds, managed in Spain by IDAE, through the Ministry for Ecological Transition and Demographic Challenge.
Subsidy Amounts Based on Type of Photovoltaic Installation
- For installations of less than 10 kWp: €600 per kWp of installation, and about €490 per kWh for solar batteries.
- For installations over 10 kWp: between €300 and €450 per kWp installed.
Regional Subsidies from the Valencian Institute of Business Competitiveness (IVACE)
These subsidies correspond to financial aids promoted by each autonomous government. They are also very interesting as they cover the total installation cost. The only drawback is that the budget is tighter than that offered by European funds, making them harder to obtain.
European and regional funds are not combinable, as both finance the total installation cost.
For regional aids, the last application period is already closed. This was from March 22, 2022, to April 29, 2022.
Tax Deductions and Fiscal Incentives
The tax deductions and fiscal incentives available in the Valencian Community for installing self-consumption are:
- IRPF Deductions: One can request a deduction of 20% of the amounts invested in installations in the main residence. If traditional energy consumption is reduced by 30%, the deduction can be up to 40%, and up to 60% if the installation benefits the entire building in a community of neighbors.
- IBI Bonus: For self-consumption installation, you can receive a bonus of up to 50% of the quota, varying by municipality.
- ICIO Bonuses: You can reduce the quota by up to 95% in some municipalities for any installation, including self-consumption.
In the Valencian Community, these aids are compatible with the previous ones regarding the installation price.
IVACE offers certification for the application of tax deductions in IRPF for self-consumption and renewable energies in the community.
Main residences with solar self-consumption installations can deduct up to 40% of the investment, while second homes can deduct 20%.
Who Can Apply for Self-Consumption Subsidies?
Eligible applicants, as described on the official website of the Generalitat Valenciana, are:
- Individuals not engaged in any economic activity offering goods/services in the market.
- Local entities of the Valencian Community and the institutional public sector of any Public Administrations in the Valencian Community, provided they do not engage in any market-oriented economic activity.
- Legal entities not engaged in any economic activity offering goods/services in the market, including third-sector entities or organizations