Solar Panels Installation in Madrid

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Solar panel installation companies in Madrid

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Sun hours in Europe.

Average annual insolation map. National Geographic Institute (IGN) Spain.

Solar energy potential in Madrid

The Madrid region has approximately 2,700 hours of sunshine per year - slightly more than the national average of 2,500 hours - and an average temperature of 14.5°C. We can compare the potential of the Spanish capital with some northern European cities where solar energy is a normality, such as Berlin and Amsterdam. They have 1,728 and 1,662 hours of sunshine per year, respectively, so you can draw your own conclusions about Madrid's photovoltaic capacity! 💪☀️

Solar energy potential in Madrid. Source: PVGIS.

Annual photovoltaic energy production in Madrid

Annual production of photovoltaic energy in Madrid. Source: PVGIS.

To calculate your photovoltaic production in Madrid, let's take as an example a solar installation of 1.2 kWp of installed power, where the system will have an optimum inclination of 36º to the south, and the result will give us an annual photovoltaic energy production of 1,945.5 kWh. The months with the highest production are June, July and August with 186, 203 and 199 kWh, respectively. In case of opting for a 2.4 kWp PV self-consumption system (twice the installed power as in the previous case), an annual production of 3,887 kWh could be expected (also doubling the annual production).

Average electricity bill in Madrid 2021-2022

Average electricity bill. Source: OMIE.

Madrid, as a municipality, is the most populated in Spain, with 3.3 million people, making it the second most populated city in the European Union. According to the Spanish Electricity Grid (REE), Spanish households - and therefore in the Community of Madrid - consume an average of 9 kWh per day and 270 kWh per month approximately, which represents about 3,240 kWh/year.Grid electricity prices in Madrid in 2021-2022 have averaged around 0.225 €/kWh (225 €/MWh). A household in Madrid without a rooftop PV system consuming 270 kWh per month would pay around €60 per month on average in the variable part of the electricity bill related to consumption.

Inclination and orientation in Madrid

In Spain, the ideal average inclination of solar panels varies between 20 and 40 degrees, and is a concept that is closely linked to the latitude of the country. The closer it is to the equator, the smaller the angle of inclination of the panels will be, as the sun's rays will strike perpendicularly. The inclination of most houses in Spain is between 20 and 35 degrees.South facing solar panels for self-consumption in Madrid with an optimum tilt of 36 degrees will produce the most electricity, but placing modules facing east or west can also be worthwhile. East-facing solar panels in Madrid will produce more electricity in the morning, while west-facing panels will produce more in the afternoon.

Average temperature in Madrid

Average temperature in Madrid. Source: PVGIS.

Madrid's climate is quite pleasant with an annual average of 14.5°C. Summers are hot to warm with an average maximum of 33°C in July, while winters are moderately cold with an average minimum of 6°C in January.

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Get the most out of your solar panel installation in Madrid

In Madrid there are local subsidies such as IBI (Real Estate Tax) rebates and ICIO (Tax on Construction and Installations) rebates, as well as subsidies from European funds for solar self-consumption (NextGeneration EU).

Frequently asked questions about photovoltaic installation in Madrid

How much does it cost to install solar panels in Madrid?

The price of a photovoltaic installation in Madrid - and in any case - depends on the type of installation, size of the system and its components. Considering all the necessary materials: panels, inverter, wiring and installation costs such as labor for a single-family house requiring 10 panels, the approximate price would be €6,000 and for 15 panels €8,000.

How profitable is a photovoltaic installation in Madrid? Are solar panels worth it?

6 to 7 years is the amortization of the investment, assuming that bonuses have been counted in the first case, and without any subsidies in the second case.

How much can I save with my solar panel installation?

With your photovoltaic installation in Madrid you can save approximately 60% and up to 70% on your electricity bill (in the variable part of it, referring to electricity consumption).

What procedures and/or permits do I need for photovoltaic installations in Madrid?

Although these administrative procedures are often carried out by the installation company, it is important to know that for installations of solar panels connected to the grid and whose power does not exceed 15 kW, you must notify both the distributor and the Autonomous Community of Madrid.

Is the Madrid City Council granting aid for the installation of solar panels in 2023?

IBI discount: %, years, uses and limitations

50% for 3 years. This means a 50% discount on the full amount of the tax during the 3 tax periods following the completion of the installation and includes those installations subject to the horizontal property regime, depending on the use of the property (residential or other than residential) and whether it is used for individual or collective self-consumption.

ICIO tax credit

95%. Bonus of 95% on the fee for constructions and installations consisting of the installation of systems for the use of solar energy for residential self-consumption.

Subsidy for solar panels 2021 vs 2022 in the Community of Madrid

The MITECO (Ministry for the Ecological Transition and the Demographic Challenge) extends in 2022 its initial budget destined for Madrid, launched in June 2021 -and quickly exhausted due to the number of requests- for the Photovoltaic self-consumption aid program, storage and renewable thermal installations.For more information on the state of aid in Madrid, we leave you the following interactive map of the Recovery, Transformation and Resilience Plan RD 477/2021.

What subsidies are there and how to request aid for self-consumption in Madrid?

The subsidies correspond to a maximum of 30% of the total budget of the installation and for those installations less than or equal to 10 kWp, the aid for self-consumption is €600/kWp.The processing for the application must be done through the website of the Energy Foundation of the Community of Madrid. Grants can be requested from November 16, 2021 to December 31, 2023 or until funds are exhausted. All the necessary information and documentation can be found in the Official Gazette of the Community of Madrid.

Is there a personal income tax deduction for a photovoltaic installation in Madrid?

Regardless of the fact that in the future fiscal measures related to the promotion of the installation of photovoltaic solar panels for self-consumption may be adopted, as they exist in other Autonomous Communities such as Murcia, for example, it should be clarified that at the moment there is no deduction for this investment in the full regional quota of the income tax in the Community of Madrid.

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