Spain Rooftop Solar Market Gains Momentum Amid Falling Panel Costs 2026-2034

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Market Overview

The Spain rooftop solar market was valued at USD 2.74 Billion in 2025 and is expected to reach USD 13.95 Billion by 2034, expanding at a compound annual growth rate (CAGR) of 19.82% during 2026-2034. The market benefits from Spain's exceptional solar irradiance and supportive government policies, including the removal of the 'sun tax' and National Energy and Climate Plan targets fostering self-consumption. Integration of smart monitoring and battery storage enhances energy independence, while streamlined regulations promote adoption across urban and rural areas. 

Study Assumption Years

  • Base Year: 2025
  • Historical Year/Period: 2020-2025
  • Forecast Year/Period: 2026-2034

Spain Rooftop Solar Market Key Takeaways

  • The market was valued at USD 2.74 Billion in 2025, with a CAGR of 19.82% projected through 2026-2034.
  • On-grid systems dominated the market with a 92% share in 2025, propelled by net metering policies and established grid infrastructure.
  • Residential end users held a 55% market share in 2025, driven by growing household adoption and government tax incentives.
  • TotalEnergies launched Europe's largest solar cluster near Sevilla in 2025 with 263 MW capacity generating 515 GWh annually.
  • Over 60% of installations in 2024 included battery storage, reflecting demands for energy autonomy.

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Market Growth Factors

Supportive Government Policies and Regulatory Framework Evolution

Spain’s rooftop solar market growth is strongly supported by government initiatives. In February 2024, a USD 1.24 Billion incentive program was launched under the Recovery, Transformation, and Resilience Plan to enhance clean energy technology supply chains. Regional tax credits, notably in Murcia, Valencia, and Navarra, provide income tax deductions for residential installations. Regulatory stability simplifies grid connection rules and installation standards, fostering investor confidence and encouraging expansion of small-scale solar projects. Public awareness campaigns and sustainability commitments further propel adoption.

Innovations in Technology

Technological advancements significantly boost Spain's rooftop solar market. In December 2025, the Institute for Energy Diversification and Saving allocated nearly 10 gigawatt-hours of energy storage capacity with over €827 Million funding to 133 projects integrating battery, pumped hydro, and thermal storage, mainly in Andalusia, Galicia, and Castilla-La Mancha. Enhanced solar panel efficiency, improved inverter technologies, and smart monitoring solutions enhance system reliability and user control. Lightweight, flexible panels and smart home integrations improve installation feasibility and energy management, reducing costs and increasing consumer trust.

Rising Electricity Prices and Consumer Energy Independence Prioritization

Increasing electricity prices motivate Spanish households and businesses to adopt rooftop solar for cost-stable energy and long-term savings. As conventional tariffs rise, system payback periods shorten, making solar an attractive investment. Consumers value energy independence to guard against grid instability and future price volatility. Self-generated electricity affords greater control over consumption and budgeting. Businesses reduce operating costs and enhance sustainability branding, while solar-equipped homes gain higher property values. This drives rapid market adoption and shifts consumer attitudes toward renewables.

Market Segmentation

By Grid Type:

  • On-Grid: Holding a 92% market share in 2025, on-grid systems allow users to connect to the main electricity network while generating power, ensuring reliability during low sunlight and enabling surplus energy export. These systems shorten installation time, reduce operational risks, and suit large rooftops and multi-unit buildings.

By End User:

  • Residential: Leading with 55% market share in 2025, residential adoption is propelled by rising electricity prices, environmental awareness, and government incentives, including tax credits and exemptions. Over 483,000 homes used self-consumption solar systems in 2024, supported by improved panel efficiency and smart monitoring optimizing solar utilization.

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Regional Insights

Southern Spain dominates the rooftop solar market due to exceptional solar irradiance and favorable regional grants, particularly in Andalusia, accounting for the largest cumulative self-consumption capacity. Eastern Spain, including Valencian Community and Catalonia, demonstrates rapid deployment supported by streamlined permits and installer networks. Northern Spain and Central Spain show growing adoption, with industrial and commercial sectors expanding self-consumption systems. Madrid leads Central Spain with significant urban rooftop availability. These regions collectively drive the national rooftop solar expansion.

Recent Developments & News

In March 2025, the Stellantis Group, in partnership with Prosolia Energy, launched Spain’s largest rooftop solar facility at its Vigo plant. The installation comprises 33,000 solar panels over 170,000 square meters, featuring an installed capacity of 18.3 MWp and annual production of 22.7 GWh. This facility sets a benchmark for industrial sector solar self-utilization in Spain.

Key Players

  • TotalEnergies
  • Stellantis Group
  • Prosolia Energy

Customization Note

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About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provides a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

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