Financial and tax incentives from Spanish city halls to promote self-consumption

FuturENERGY July-September 2020

41% of Spanish municipalities with over 10,000 inhabitants are offering rebates on the Property Tax for self-consumption installations. In other words, 312 municipalities, which represent 60% of the population living in the 753 municipalities studied (22,437,952 inhabitants). This is the finding of a study undertaken by Spain’s Renewables Foundation and Norway’s Otovo, expanding on and improving the reports carried out in 2018 and 2019, which assessed and analysed the situation of the different financial and tax incentives contained in the municipal regulations of Spain’s city halls, with the aim of promoting and supporting the installation of self-consumption PV systems.

The Property Tax (known as the IBI in Spain) and the ICIO (Tax on Construction, Installations and Works) have also been analysed. It was found that only 231 municipalities, 28% of those analysed, representing 47% of the population studied (17,767,360) offer both rebates. Moreover, 87 city halls only offer a rebate on the IBI, representing 12% of the total; 170 or 23% only on the ICIO; and 263 municipalities (35%) offer no type of rebate at all.

The report highlights that some city halls which offer this rebate have such restrictive and incoherent administrative and technical conditions in order to obtain the rebate, above all in the case of the IBI, that access to it is almost impossible in some cases.