Energy efficiency has become a top priority for households, companies, and public administrations. Apart from helping reduce consumption and lower electricity bills, it also contributes to sustainability and to meeting the climate goals set by the European Union. In 2025, this commitment takes shape through a range of tax deductions and public grants that support energy renovation projects for homes and buildings.

With the end of the fiscal year approaching, now is the time to review which projects qualify for personal income tax deductions, which national and regional programmes are currently active, and how to prepare the required documentation to make the most of these opportunities. Here’s everything you need to know to take advantage of the energy efficiency incentives available in 2025.

Income tax energy efficiency deductions 2025: key points and requirements

The tax deductions for energy efficiency improvements in housing remain in force for 2025 thanks to the extension of Royal Decree-Law 19/2021. These deductions allow you to reduce your personal income tax based on the type of project carried out and the level of energy savings achieved.

There are currently three types of tax deductions available:

20% deduction for projects that reduce heating and cooling demand by at least 7% —only applicable to your primary residence.

40% deduction for projects that reduce non-renewable primary energy consumption by 30% or achieve an energy rating of class A or B.

60% deduction for full energy rehabilitation of residential buildings.

For example, if you carry out a project that improves your home’s energy rating from class D to class B and the total cost is €10,000, you could deduct up to €4,000 on your income tax return —provided you meet the necessary technical and documentation requirements.

National energy efficiency grants 2025

Active national programmes: PREE 5000, MOVES III, and others

Several national programmes promoting energy efficiency remain active in 2025:

• PREE 5000: targeted at municipalities with a population under 5,000, supporting the energy rehabilitation of buildings.
• MOVES III: focused on the installation of charging infrastructure for electric vehicles and on promoting energy-efficient mobility.
• Programme for Energy Rehabilitation of Buildings (PREE): aimed at improvements to building envelopes, thermal systems, and electrical installations.

Eligible actions and maximum amounts

The projects eligible for these grants include:

• Replacing windows with models featuring thermal break technology.
• Installing aerothermal or geothermal systems.
• Insulating façades and roofs.
• Replacing lighting systems with LED technology.

The grant amounts vary depending on the type of project and applicant profile. In general, subsidies cover between 30% and 80% of total costs, with maximum amounts exceeding €12,000 per home in some cases.

How to apply and deadlines in 2025

Applications must be submitted via the platforms provided by the IDAE (Institute for the Diversification and Saving of Energy) or the regional governments managing the funds. You’ll need to submit:

• A technical report of the project.
• A detailed budget.
• Energy performance certificate.
• Proof of payment.

Deadlines vary by programme, but many close before 31 December 2025, so it’s best to start early.

Regional energy efficiency grants 2025

Each autonomous community oversees its own funding calls, often combining them with national grants. Here are some of the most noteworthy:

Madrid

The Community of Madrid continues in 2025 to offer several grants to improve home energy efficiency. These include subsidies for projects such as façade and roof insulation, replacing windows with more energy-efficient models, and installing renewable systems like aerothermal equipment or solar panels. The grants can cover up to 40% of total costs and are compatible with national tax deductions. They are managed through FENERCOM (Madrid Energy Foundation) and are open to both individual homeowners and homeowners’ associations.

Valencia

The Valencian Regional Government offers the Renove Programme, focused on upgrading key elements that enhance household energy efficiency. In 2025, this programme includes grants for replacing windows with thermal break and low-emissivity glass models, as well as for replacing old appliances with new ones rated A or higher for energy efficiency. These grants can be combined with national tax deductions, maximising savings potential. Applications are managed via the IVACE (Valencian Institute for Business Competitiveness) website, while calls typically open in spring.

Galicia

The Regional Government of Galicia maintains in 2025 an ambitious subsidy plan promoting renewable energy use and energy efficiency improvements in homes. Eligible projects include the installation of aerothermal, biomass, and insulation systems, as well as overall building envelope upgrades. Subsidies can cover up to 60% of costs, especially in rural areas or for homes with low energy ratings. These grants are managed by INEGA (Galician Energy Institute) and are open to both individuals and homeowners’ associations.

Castilla y León

In Castilla y León, the 2025 grants for energy rehabilitation aim to improve thermal comfort and reduce consumption in both rural and urban homes. Eligible projects include façade and roof insulation, window improvements, efficient HVAC systems such as aerothermal or biomass boilers, and the integration of renewable energy. These grants can cover a significant portion of costs and are compatible with national programmes like PREE 5000. Calls are published on the regional government’s housing and energy portal, usually closing before the end of the year.

Remember that each funding call has its own specific requirements and deadlines. Check the official websites of each regional government for details.

Compatibility and combination of grants

A common question is whether you can combine multiple grants. The answer is yes —but with certain limitations:

• Public subsidies may reduce the deductible base in your personal income tax, so you’ll need to calculate the tax impact carefully.
• You cannot apply for duplicate funding for the same project from different programmes if the regulations prohibit it.
• It’s possible to combine national and regional grants, as long as you don’t exceed the maximum percentage of eligible costs.

If you plan to combine grants, we recommend consulting a tax advisor to optimise your deductions and avoid incompatibilities.

Documentation, deadlines, and practical tips

To qualify for grants and deductions, you’ll need the following documentation:

• Energy performance certificates (before and after the project).
• Full invoices showing VAT breakdown.
• Technical project reports.
• Proof of bank payments.
• Declaration of responsibility signed by the technician.

Some regions may require additional conditions, such as a minimum three-month residence registration or other documents. That’s why it’s essential to prepare everything in advance and carefully review the requirements of each funding call.

FAQs: energy efficiency grants and deductions 2025

Can I claim deductions for work done on a second home?

No, only for your primary residence or residential buildings in which you hold ownership.

What if the project is completed in January 2026?

You won’t be able to apply for the tax deduction, since the certificate must be issued before 1 January 2026.

Do the grants count as taxable income?

Yes, the subsidies received must be declared as income and can affect your deductible base.

Can I apply for grants if I’m a tenant?

Only if you have the property owner’s authorisation and you directly cover the investment.

Want to know if your home qualifies for these grants?

At Endesa, we can help you improve your home’s energy efficiency with tailored solutions and expert advice. Because saving energy also means taking care of what matters most.