Photovoltaic solar energy is experiencing a decisive moment in Spain. and the rest of Europe, consolidating its position as one of the most relevant technologies in the transition toward a more sustainable energy model. Thanks to high solar radiation and an increasingly favorable regulatory framework, the country has managed to position photovoltaics as the main source of electricity generation for several months of the year, breaking production records and accelerating the decarbonization of the electrical system.
This progress, however, is not without its drawbacks. new technical, economic and regulatory challengesLow prices (even reaching zero) in the wholesale market, the integration of renewables into the grid, the need for storage, and recent blackouts have tested the sector's resilience, forcing it to adapt strategies and drive innovation both at scale and in self-consumption.
Spain, at the forefront of photovoltaic solar energy
The installed capacity of photovoltaic solar energy now exceeds 32.000 MW. (25% of the national total) and continues to grow at a rate higher than the European average, according to Red Eléctrica de España. Most of this capacity corresponds to large ground-based plants, concentrated in regions such as Extremadura, Andalusia and Castilla-La Mancha, although a general increase is observed throughout the country. Some of the largest facilities, such as the plants Francisco Pizarro (590 MW, Cáceres) and Nunez de Balboa (500 MW, Badajoz), reflect the commitment of leading companies such as Iberdrola, Endesa and Acciona.
The month of June 2025 marked a new milestoneSolar photovoltaic energy generated almost 6.000 GWh, 25% more than the previous year, and achieved a 26% share of the monthly electricity mix. For several days, it represented more than 30% of the electricity produced nationwide. This trend continued throughout the semester, placing Spain as the second-largest EU country in terms of solar generation volume and third in terms of total share, surpassed only by Germany in absolute terms.
Growth is not limited to the peninsulaIn the Canary Islands and the Balearic Islands, although the technical conditions and dependence on combined cycle energy remain significant, the penetration of renewable energy and solar projects continues to increase year after year, favoring a reduction in emissions and better management of local demand.
Economic, social and industrial impact of photovoltaics
The Spanish photovoltaic sector represents more than 12.000 billion euros in GDP. and provides work for more than 160.000 families through direct and indirect employment. Furthermore, investment in innovation exceeds €600 million annually, reflecting the strength of an industry that, although still dependent on imports, is recovering local manufacturing capacity.
The construction of new solar panel factories, such as those promoted by Iberdrola and Exiom in Asturias or MCPV In Navarre, along with projects in the rest of Europe, they are a commitment to reducing dependence on foreign sources and strengthening the regional value chain. The European objective is for at least 40% of the equipment needed for the deployment of strategic renewable technologies to be manufactured locally by 2030.
Challenges: zero prices, integration and storage
One of the most talked about phenomena in 2025 has been the emergence of zero or negative prices. in the wholesale electricity market during peak solar production hours. This context, while confirming the success and competitiveness of solar energy, also impacts project profitability and limits the entry of new investments, especially in regions where photovoltaic deployment is widespread.
To respond to this scenario, The sector is betting on several strategies:
- Incorporation of batteries in large plants to store energy and sell it during peak demand times.
- Development of hybrid facilities that combine solar with wind or storage.
- Promoting fixed-price power purchase agreements (PPAs) to provide stability and facilitate the financing of new parks.
- Digitalization and improvement of power grid management to integrate more renewables without compromising system security.
The government and system operators are exploring new measures to incentivize storage and adapt regulations, as the massive introduction of renewables requires a flexible and resilient framework. Learn more about the regulatory framework in solar energy can be found at this link.
The role of photovoltaics in critical events: the case of the blackout
One of the most debated topics in 2025 has been the massive blackout that affected the entire peninsula and Portugal in April. Although initially linked to solar generation, industry specialists and associations have emphasized that Photovoltaic plants have protection and automatic disconnection mechanisms. in case of network incidents, acting as a security measure.
The experience has served to highlight the importance of strengthen storage systems and the system's regulatory capacity, in addition to modernizing infrastructure. New regulatory changes recognize that nearly 90% of photovoltaic plants built since 2019 can regulate voltage and provide robustness, which improves stability and reduces risks in the event of incidents.
The commitment to self-consumption and hybridization
The push for solar self-consumption in homes, industries and public buildings is another growing trend.Projects such as the Calp municipal swimming pool and the Els Poblets pavilion reflect how local councils and specialized companies are investing in customized solutions to reduce bills and carbon footprints, and increase energy independence.
These initiatives typically incorporate monitoring systems, modern inverters, and structures that guarantee efficiency and durability, with returns on investment ranging from five to seven years depending on energy consumption and rates. Furthermore, improved solar energy regulations now facilitate hybridization and storage on-site, without requiring the complex procedures required until recently.
Future prospects and regulatory challenges
The National Integrated Energy and Climate Plan (PNIEC) sets the goal of reaching 76 GW of solar photovoltaic energy by 2030., including a significant portion of self-consumption. To achieve this, it will be key to maintain a stable regulatory framework, promote electrification, and ensure that demand grows in line with installed capacity.
The sector is also calling for the elimination of administrative barriers and adaptation of procedures for the deployment of storage, more secure auctions that provide long-term certainty, and an approach that incentivizes investment in value-added solutions—such as agrivoltaics, solar pumping, and floating parks—to diversify and strengthen the contribution of solar photovoltaics to the Spanish energy system.
Spain is moving toward a renewable energy model, with a growing role for solar photovoltaics, both large-scale and for self-consumption. Achieving the ambitious 2030 goals will depend on the sector's and government's ability to adapt to technical and market challenges, boost storage, modernize the grid, and maintain its attractiveness to local and foreign investment. Solar photovoltaics, with its technological and regulatory evolution, is already essential to ensuring a safe, efficient, and sustainable transition.
