According to the Ministry of Ecological Transition of Spain, our region is betting heavily on solar energy. In 2022 it is expected that 10% of the total energy consumed in the Balearic Islands will come from renewable energies (currently that figure is 2.5%). The way to encourage the proliferation of this type of installations is through subsidies and public aid. In this way, you can have a positive impact on the amortization of solar panels in Mallorca. Some of these grants can vary considerably depending on the municipality in which we intend to install our solar energy installation.
These grants are classified into four large groups: IBI, ICIO & prior communication works tax, regional aid and reductions in personal income tax. Of all the afore mentioned subsidies, those of IBI and ICIO depend directly on our local governments or city councils, the regional aid depends on the General Directorate of Energy and Climate Change and the reduction of personal income tax depends on the Tax Agency. Next, we explain in greater detail what each of these public aid consists of.
IBI bonuses: these bonuses will depend directly on the municipality where the solar panels have been installed. They consist of a percentage reduction (approximately 50%, variable depending on the municipality) on our Home Property Tax (IBI) for a period that can range from 1 year to 3 years. To access this tax reduction, it is necessary to notify the solar energy installation to our town hall. The Majorcan municipalities where we currently know that these bonuses apply are: Alcudia, Capdepera, Artà, Inca, Palma, Pollença, Andratx and Sant Llorenç des Cardassar.
Bonuses in ICIO and in prior communication works tax: in the same way as the previous ones, these bonuses also depend on the municipalities. In the case of the ICIO (Tax on Constructions, Installations and Works), most of the municipalities consulted reduce the tax to 95% (except Felanitx, Llucmajor and Pollença).
Regional aid: the Balearic Islands Government, together with the Feder 2014-2020 Operational Plan, promotes aid for the installation of solar panels of 3Kwp of maximum power with the aim of promoting self-consumption for individuals and communities of owners. Said aids are published by the Government through annual calls. The last call consulted presented a maximum of 50% discount for photovoltaic installations, the maximum allowed being € 1.80 per Wp (peak watt installed). Below, we enclose a link where you can consult these calls in more depth:
Reduction of personal income tax: through the document model number 100 relative to the IRPF (personal income tax), it is possible to deduct up to 15% of the amount invested in installing solar panels in the habitual residence (applicable in equipment that generates electricity and domestic hot water, indistinctly).
We hope this information has been useful to you. For other questions or requests related to the matter, do not hesitate to contact us. Like us on our Facebook page to keep receiving news and useful information about solar energy, air conditioning and heating.