Valencia: New centre for solar energy initiatives and solar parks

With the aim of achieving the EU’s climate neutrality goals by 2050, Spain has made significant improvements, quadrupling its solar power in the last five years.

But how much energy in Spain comes from renewable sources and what initiatives make it one of Europe’s leading countries in sustainable energy?

Using solar energy in Valencia

In 2021, Spain became the seventh best performing country in the world in terms of adding solar power capacity. This exponential growth is likely to continue as solar energy in spain becomes a greater source of energy.

The Valencian Community is a leader in the development of renewable energy. In 2020, more than 70 percent of electricity production in the region was carbon freewhich demonstrates full commitment to sustainable energy development.

Valencia City Council, the Valencia Climate and Energy Foundation and the Horta Sud Foundation have also recently launched a partnership to promote energy communities.

These are non-profit organizations that aim to encourage citizens, small businesses and the public sector to participate openly, share renewable energy sources and promote effective energy saving habits.

The aim is to shape a collaborative approach and community engagement in energy production, consumption and sustainable development.

Solar Energy Incentives in Valencia

The Valencian authorities are promoting the transition to renewable energy by creating significant incentives to encourage the use of solar energy.

Property tax deduction

The deduction from the Spanish property tax IBI (impuesto sobre bienes inmuebles), with the possibility of a discount of up to 50% for the first three years, is possible in both urban and rural areas throughout the community.

Tax on premiums for construction, installation and works

ICI (impuesto sobre constucciones, installations y obras) is a tax on construction work, new installations and other works. Residential buildings can receive tax deductions of up to 95 percent in Valencia, with deductions of up to 50 percent for mixed-use buildings in Alicante.

Income Tax Deduction for Solar Panel Installation

Homeowners can claim an Income Tax Deduction (IRPF) by installing solar panels for home use. The deductions depend on how effective the panels are in reducing traditional energy use.

Grants for individual real estate

While installing solar panels for home use can be expensive, there are grants available to help cover the cost of purchase and installation. For individual properties, this can be as much as 40 percent of the budget.

Grants for companies

As with individual properties, companies can also apply for subsidies to develop their solar power capacity. In the Valencian Community, companies can apply for subsidies of up to 45 percent of the cost of developing solar panels.

The Solar Energy Market in Spain

In 2022, solar energy accounted for 11.5% of Spain’s total electricity production. That figure is expected to more than double by 2026.

These opportunities have been enhanced by investments from private companies such as Iberdrola, who financed three photovoltaic (PV) farms in the Valencia region worth €235 million. Two of the solar plants are located in Valle de Ayora-Cofrentes and the third near Alicante, with all three providing a total of up to 1,450 jobs.

In January 2023, the Spanish Ministry of Ecological Transition (MITECO) enabled the development of 132 PV projects with a total capacity of 24.8 gigawatts. The PV capacity – essentially the capacity of solar panels – of the Valencia region has increased significantly from a starting point of 313 gigawatts in 2011.

Companies joining the solar revolution

In addition to government investment, private companies are also joining the solar revolution. One of the most successful companies in the Valencia region, supermarket giant Mercadona, announced plans invest €60 million in installing solar panels on roofs in the coming years, which will significantly reduce emissions and promote sustainable energy use.

According to Mercadona, this will reduce carbon dioxide emissions by more than 3,000 tons per year. The goal is for more than 850 stores to become energy self-sufficient by 2027.

Similarly, Danone has launched a solar plant at its Aldaya factory, investing €2.2 million. This will supply the Valencian plant with sustainable energy, drastically reducing carbon dioxide emissions as part of the company’s decarbonisation initiatives.

New solar parks

Finally, in Valencia, various solar park and solar power plant projects have been developed recently. One of the most notable, still in the planning phase, is the Acciona Valencia Solar PV Park, which will have a capacity of 86 megawatts (MW). Three other large solar power plants are already operating in the Valencia region: the Beneixama Photovoltaic Plant, the Huerta Solar Realengo and the Huerta Solar Alfarrasí.

With year-round sunshine in the region and active private and public investment in renewable energy in Spain, Valencia is an ideal location for the development of renewable solar energy. It is fast becoming a centre for photovoltaic parks, plants and solar energy initiatives.

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