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Spain’s Sun Tax

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Don’t Panic, it’s not as bad as you think

The infamous “Sun Tax”, el Real Decreto 900/2015 – is the law that has caused quite a bit of confusion in Spain since it was adopted on October 9, 2015. Between bad reporting and negative propaganda, many people began to believe solar is illegal in Spain. But this is far from the truth.

As of February 2018, there is a strong push by various European Union’s Member States for updates to the European Renewable Directive which obligates Member States to meet 35% renewable energy by 2035. Included in the law is a section that specifically prohibits Member States from charging fees such as the Sun Tax.

What is the Sun Tax?

The Sun Tax aims specifically at the group of solar system owners that produce their own electricity (Auto Consumo) while being connected to the national power grid. With the passing of the law, these small producers are obligated to donate all non-used solar energy produced by their systems to the national grid.

The law banned community solar energy projects whereby a group of consumers could pool their resources into a single system that provides energy to multiple people. Also, the legislation included obligations for system owners to register their systems or face penalties more severe than a nuclear power station leaking radiation.

Solar Tax Does not affect:

– Solar Hot Water
– Off-grid Home Installations
– Parallel Home Installations, where you have solar/batteries for powering an independent system in your home

Solar Tax does affect Auto-Consumption of Energy
– Homes with solar power and connected to electric company
– Homes with solar power and batteries, connected to electric company
– You cannot sell your electricity to the electric company
– Community solar projects are illegal


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