The installation cost of a residential solar system in Spain

The installation cost of a residential solar system in Spain, according to available data, was approximately $1,397 per kilowatt in 2020. This price has seen a significant decline compared to other countries, with Spain experiencing a 52% reduction in the import costs of residential solar power generation between 2010 and 2020.

In comparison with other nations, Spain offers relatively lower installation costs for solar systems. For instance, in other parts of Europe like Germany, solar subsidy policies have contributed to higher installation costs. Furthermore, Spain abolished an additional tax on households installing solar panels in 2018, further reducing the cost of residential solar systems.

Regarding the average annual income of a residential solar system in Spain, encompassing electricity savings and other potential revenue sources, the following can be deduced:

Electricity Savings:

• Spanish households with installed PV systems can save 40-60% of their annual electricity bills.
• For a family paying 100 euros per month in electricity bills, after installing solar panels, the monthly cost can drop to between 35 and 50 euros.

Government Subsidies and Tax Exemptions:

• Spain offers around 900 million euros in subsidies, coupled with local tax exemptions, which are recouped within five years.

Long-term Benefits:

• A 3 kWc residential PV system can generate approximately 40,000 euros in revenue over its 25-year lifespan.
• Generally, residential PV systems have a lifespan of 25 years or more, during which the electricity generated and electricity bills saved become direct profits.

Integrating the above information, the average annual income of a residential solar system in Spain can be estimated as follows:

• Annual Electricity Savings: Assuming an average monthly electricity bill of 100 euros, savings can range from 40 to 60 euros per year.
• Government Subsidies and Tax Exemptions: Assuming full cost recovery within five years, approximately 18% of the investment could be considered additional income annually.
• Long-term Benefits: A 3 kWc system generating 40,000 euros over 25 years equates to roughly 1,600 euros per year.

Thus, the total average annual income for a residential solar system in Spain is approximately 2,040 to 2,200 euros, including annual electricity savings, government subsidies and tax exemptions, and long-term benefits.