Most of us would love lower electricity bills, and if we can help the planet at the same time, even better. That is why more and more people in Spain, especially in Madrid, are installing solar panels at home. Solar can seem complicated and expensive at first.
The good news is that in 2025 switching to solar is much easier and more affordable. The government offers support in the form of tax incentives, renewable energy grants, simpler rules and even opportunities to share solar energy with your neighbours.
If you have ever thought ‘I’d love solar, but I don’t know where to start’, this is for you.
Getting money back: tax relief and grants
Let’s talk about money, because that is usually the first question. Installing solar panels at home used to be expensive; now, not so much. In Spain, if you install solar you can currently recover up to 40% through your taxes, and if your system saves more energy or includes a battery, you may receive even more.
There are also government grants covering a significant share of the cost, between 15% and 45%. If you add a battery, you could even receive up to 65% of the battery cost through these schemes.
Here is what that could mean:
- A 5 kW system might cost around €5,500.
- After tax relief and grants, the cost could fall to just €1,600.
- You could save €60–90 a month on your electricity bills.
- Most people recover their full investment in around 6 to 8 years.
- After that, it is all savings.
Also read: 7 questions to ask when installing solar panels
The process is now much simpler
The financial side sounds good, but you may be thinking about the paperwork. It used to be a headache; not any more. Simplified rules have made the solar installation process much faster. For most home systems, the paperwork is straightforward and approvals are usually quick. What used to take months can now be completed in a few weeks, sometimes less.
And if your panels produce more energy than you use, which is often the case, you can sell the surplus to the grid. You save money and can even earn a little.
Even better, if you don’t have your own roof or you live in a shared building, you can still take part:
- Team up with your neighbours.
- Share solar energy from a shared system.
- Split the savings on your electricity bills.
- No need to install anything in your own home.
It is an easy way to enjoy the benefits of solar without a roof.
Sharing solar energy: collective self-consumption
The name sounds technical, but the idea is simple. Collective self-consumption means you and your neighbours can share a solar installation, on your building’s roof or somewhere nearby in the neighbourhood. Everyone receives a share of the electricity and everyone saves on their bills.
It is ideal if you live in a flat or don’t want to manage your own panels: just join and enjoy lower bills. Some shared solar installations in Madrid are already helping families cut their electricity bills by up to 40%, and you don’t have to manage anything yourself.
The rules have recently been updated to make these systems easier to set up — a smart way to bring clean energy to more people, not just owners of large houses.
What is happening in 2025, and why does it matter?
- In 2024, more than 79,000 new solar systems were installed in Spain.
- Most of them (around 73,000) were installed in homes.
- 26% of those homes also added batteries to store their solar energy.
This is a huge shift, showing that people are ready to change when the right support is in place. Families are making their homes more independent from the grid, using clean energy and spending less on monthly bills. Looking ahead to 2026, the aim is to make solar even more accessible, especially for people living in shared buildings.
Conclusion
You don’t have to work it all out on your own. Thanks to tax incentives and simpler rules, solar has never been more accessible, and if you live in a shared building or don’t have the perfect roof, you can still benefit from collective self-consumption.
If you want to know how to get started, talk to the Keiken Engineering team. We will help you decide what is best for your home or building, explain the options and help you apply for grants. Contact us today.
Frequently asked questions
Is switching to solar really worth it?
Yes. You will save money on your bills and there is support to cover the cost. It is a smart decision right now.
I don’t have a roof. Can I still use solar?
Yes. You can share solar energy with your neighbours or your building through collective self-consumption, and you will still save.
Is it difficult to install?
No. It is now much easier, and the right professionals will help you with everything.
