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No tax on small-scale solar panels

Following massive opposition, Spanish authorities have decided to refrain from the announced tax on private solar plants producing up to 10kW.

Foto: Hasanber, Wikimedia Commons

Foto: Hasanber, Wikimedia Commons

Although one might think that Spain with all the sun is the perfeect place for for all private homes to produce energy from solar panels, the government has been previously notified a penalty tax for individuals who install their own solar panels with the possibility of storing excess energy.

Such a tax would have doubled the time it takes to recoup the investment for a solar energy system and many private households have chosen to walk away from such plans.

But now the government has changed the planned tax after having been accused of everything from lacking concern for the environment to them being bought and paid for by the large electricity producers.

Individuals with solar systems producing up to 10kW will not be imposed any penalty tax, but must still pay a fee for maintenance of the electricity grid and to cover any costs applied to the electricity companies.

Solar systems that can’t deliver surplus power back into the public electricity grid will also escape a connection fee of 1000 €.

In the Canary Islands, Balearic Islands and in the enclaves of Ceuta and Melilla there are special exemptions and discounts for the planned solar tax regardless of how large capacity the solar panle systems have.

Background Information
Earlier it was announced that private individuals who install solar panels would have to pay a penalty tax if they had batteries that could store excess energy that was not consumed immediately. In addition, consumers would not get anything in return for any excess electricity that was sent out into the public grid.

The governement has claimed that this tax was intended to cover the costs of running and maintaining the electricity grid and that private individuals who set up their own solar plants would be free riders in a system where it is intended that everyoen should pay for using the electricity grid.

In many European countries the governments are using financial incentives to get individuals to install private solar power systems.