IRPF tax deductions for installing solar panels in 2025

How do solar panel tax deductions work?

The IRPF tax deductions for installing solar panels are a fiscal incentive that enables homeowners to reduce the amount owed on their income tax return. These deductions are designed to promote energy efficiency and the use of renewable energy sources.

Your tax savings will depend directly on the level of energy efficiency achieved by installing your solar panels. The greater the improvement, the higher the deduction applied to the total cost of the investment, which includes both equipment and installation.

Who can apply for the IRPF deduction for installing solar panels?

The following individuals or entities may be eligible for these deductions:

• Homeowners, whether of primary residences or rental properties, who want to improve their home's energy efficiency.
• Homeowners’ associations that choose to install shared self-consumption systems to reduce their energy use.
• Individuals who pay the IRPF personal income tax and meet the established requirements.

In summary, those who complete the installation within the established deadline will be eligible for these tax incentives and harness the benefits of solar energy.

Requirements to qualify for the IRPF deduction for solar panels

To claim the deduction, the following requirements must be met:

• Have an Energy Efficiency Certificate issued before and after the installation.
• The property must be located in Spain and used as a residence.
• Proof of payment for the installation must be provided through official invoices and valid payment methods (bank transfer, bank card, bank cheque).
• The installation must be completed before 31 December 2025, and the new energy certificate issued before 1 January 2026. 

How much can you deduct from your IRPF for installing solar panels?

As we mentioned earlier, the deduction percentage depends on the level of energy efficiency improvement achieved after installing the solar panels.

20% deduction with a maximum deductible amount of €5,000

• Applicable if the installation reduces heating and cooling demand by at least 7%.
• The maximum annual deductible amount is €5,000.
• The property must be the taxpayer’s main residence.

40% deduction with a maximum deductible amount of €7,500

• Applicable if the installation reduces non-renewable primary energy consumption by 30% or achieves an energy rating of A or B.
• The maximum annual deductible amount is €7,500.
• Applies to both main residences and rental properties.

60% deduction with a maximum annual deductible amount of €5,000

• Reserved for energy rehabilitation of entire buildings or single-family homes.
• The maximum annual deductible amount is €5,000, with the option to carry forward excess amounts up to €15,000 over the next four years.
• The property does not need to be the taxpayer’s main residence.

Step-by-step guide to applying for the deductions

To benefit from the IRPF deductions for solar panel installation, a series of steps must be followed to ensure compliance with tax requirements and correct application of the incentives:

1. Complete the solar panel installation before 31 December 2025: the deduction applies only to installations finished within this period.
2. Obtain the Energy Efficiency Certificate both before and after the installation: demonstrating the improvement in the property’s energy efficiency after installation is mandatory.
3. Keep all invoices and proof of payment: payments must be completed using official methods such as bank transfer, bank card, or named check. Cash payments are not allowed.
4. Declare the investment on your tax return, applying the appropriate deduction: when filing your tax return, you must include the amount invested and apply the appropriate deduction based on the applicable percentage.
5. Check compatibility with other grants or subsidies: if the installation has received a subsidy, it must be deducted from the total amount when calculating the tax deduction.

Can you claim these deductions if you have received a subsidy for installing solar panels?

Yes, IRPF tax deductions are compatible with other public subsidies or aid granted by regional governments, such as Next Generation EU funds. However, any aid received must be subtracted from the total investment amount when calculating the tax deduction.

Endesa’s solar energy options

At Endesa, we want to make the transition to solar energy easy and accessible for everyone. That’s why we offer a variety of solutions so you can harness the power of the sun in the way that best suits your needs.   

If you’re considering installing solar panels, we provide Endesa Solar, a comprehensive service with personalised advice and full management, so you don’t have to worry about anything. Additionally, we offer self-consumption tariffs designed to optimise your system’s performance, allowing you to receive compensation for surplus energy or store it in a virtual battery. This will help you reduce your bill even further.

And if you can’t install panels at home but want to enjoy the benefits of solar energy, you can opt for Solar Virtual, an alternative that enables you to consume renewable energy with no installation required.

More and more people are choosing self-consumption, and we at Endesa want to support you in this shift toward cleaner, more efficient, and sustainable energy.