Spain removes controversial sun tax

The Spanish Council of Ministers have approved a new royal decree on self-consumption that officially eliminates the so-called sun tax as well as administrative barriers imposed on self-consumption projects. The solar tax on distributed solar generation ( “impuesto al sol”), was introduced in 2015 by the former Rajoy government.

The Spanish solar association (UNEF) said: “UNEF values positively the turn taken in our country’s self consumption policy. We finally see a legal framework that will allow its optimal development. UNEF has defended for seven years a self-consumption regulation free of administrative or technical barriers so consumers and society can enjoy the social, environmental and economic benefits self-consumption brings”. Adding ” UNEF values greatly that the royal decree recognizes citizens’ right to self consume power with no extra charge on power that does not go through the grid, as well as the acknowledgement of collective self consumption in the Spanish power legislation. ”

Aurelie Beauvais, Policy Director of SolarPower Europe said “The removal of the sun tax and administrative barriers is excellent news for Spanish consumers, who can now install solar on their homes and businesses without paying unnecessary fees. This decision will boost Spain’s solar sector and in particular the rooftop segment. Today’s new law supports a consumer-led energy transition and is fully in line with the EU’s new rule which states that EU citizens have the right to generate, consume, store and sell electricity without placing punitive taxes and fees on them.”

According to UNEF the new royal decree includes important measures that help to the introduction of self-consumption, such as the definition of simplified administrative procedures that’s appropriate for the characteristics of the facilities, as well as the adoption of a penalty system that works according to the real impact of self-consumption on the power system. Furthermore, the royal decree includes measures to promote shared self-consumption, a resolution that allows reaching higher efficiency in facilities and will benefit consumers the most. In Spain, where vertical housing dominates, the possibility to install shared self-consumption in buildings provides a great opportunity to reduce power costs.

The new royal decree also includes urgent measures to reduce power prices contributes directly to job creations and to a free market, as well as to the fight against climate change. On top of that, it leads to the reduction of power costs not only for prosumers but the society as a whole.

Read UNEF’s full press release here:

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