Residential solar PV is experiencing a downturn; the Spanish solar PV market is showing signs of divergence.

Data from the Spanish Photovoltaic Industry Association (UNEF) shows a slight decrease in the installation rate of new self-consumption photovoltaic (PV) systems in Spain last year.

Data shows that the total installed capacity of new self-consumption PV systems in Spain in 2025 is 1139MW, a 3.7% decrease compared to 2024. This brings Spain's total self-consumption PV capacity to 9.3GW.

Although the year-on-year decrease is not significant, self-consumption PV installations have been on a continuous downward trend since Spain set a record high of 2.5GW in 2022.

If this downward trend continues, Spain will be unable to achieve its 19GW target for 2030 set in the National Energy and Climate Plan (NECP). UNEF estimates that approximately 2GW of new self-consumption PV capacity needs to be added annually in the coming years to reach the 19GW target.

Residential and commercial installations declined, while industrial installations increased.

In 2025, over 36,000 households installed owner-occupied Solar Pv Systems, adding a total of 229 MW of new solar PV capacity, a 17% decrease from the previous year.

The industry association added that this slowdown could be significantly exacerbated by the failure last week to pass legislation aimed at extending the personal income tax credit for home energy efficiency retrofits. The law, titled Royal Decree No. 16 2025, was introduced in December 2025 but failed to pass the House of Commons last week. This tax credit is a key driver of owner-occupied consumption.

This issue exacerbates the continued decline in surplus electricity prices under free-market electricity pricing. UNEF is calling for improvements to surplus electricity compensation mechanisms under regulated electricity pricing.

Similar to the residential sector, commercial owner-occupied PV system installations also declined by 15% year-on-year in 2025, falling to 176 MW. UNEF noted the significant potential for developing collective owner-occupied PV in the residential and commercial sectors and called for the implementation of improvements related to owner-occupied PV in the new draft Royal Decree.

On the other hand, Spain's industrial self-consumption PV capacity maintained steady growth in 2025 (an increase of 0.7%), with 679MW of new installations.

Off-grid installations saw a significant increase in 2025, rising by 105% to a total capacity of 55MW.

More positively, interest in self-consumption PV systems equipped with Energy Storage increased across all sectors in 2025. This trend became even more pronounced following the major blackout in the Iberian Peninsula in April 2025.

Although the published data only pertains to solar PV, the industry association emphasizes that many installed inverters are ready for battery installation. In response, UNEF stated that the industry considers the new self-consumption PV legislation currently being drafted crucial, as it will, for the first time, incorporate distributed energy storage system into the regulatory framework.

UNEF Director General José Donoso stated, "Self-consumed Photovoltaic Systems have demonstrated tremendous value in terms of saving on electricity bills, reducing pollutant emissions, achieving energy independence, and lowering grid investment. Currently, it is crucial to provide a stable and ambitious regulatory framework to accelerate their growth and fully unleash their potential."