What tax benefits and money off can you get when installing solar panels in Alicante and Valencia?
Ecosolarspain offers expert advice on the savings you can make when you decide to install solar panels
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These days we’re all looking for ways to save a little money and in the fair provinces of Alicante and Valencia, the sun can be one of our most useful cost-cutting allies. On average, the Valencian Community enjoys more than 300 days of sunshine each year, so it’s no surprise that 20% of the energy produced in this region is completely renewable.
This is great news for home and business owners, who can benefit from several tax breaks and self-consumption bonuses when installing solar panels.
With renewable energy set to surpass non-renewable sources in the very near future, the Recovery, Transformation and Resilience Plan of the Spanish government has earmarked several millions of euros in funding to promote and encourage electrical self-consumption.
As such, residents of Alicante and Valencia who opt to install solar panels can benefit from three main tax breaks:
- Personal income tax deductions: In this case, 40% of the installation cost can be deducted in your income tax return, provided the solar panels are erected in the habitual residence i.e. the place where you live most of the time. If it’s a second home, then tax payers are still entitled to a 20% deduction.
- IBI bonus: Impuesto sobre Bienes Inmuebles (IBI) is a tax all owners must pay on their property. The tax break here varies depending on the region, but the bonus can be anything between 15% and 50%.
- ICIO bonus: the ICIO is a tax on construction, installation or work on a property and in some cities, such as Valencia, Elche and Alcoy, the tax break can be as high as 95%.
For expert advice on the savings associated with installing solar panels in your home or business, contact Ecosolarspain today:
