The growth of photovoltaic energy in Spain: progress, challenges, and opportunities

  • Spain is experiencing significant growth in photovoltaic installations, especially in rural areas and through self-consumption.
  • The growth rate of solar self-consumption is expected to slow to 17% in the first quarter of 2025, posing challenges for achieving the 2030 PNIEC targets.
  • Energy communities and collective self-consumption are making progress, although most projects are still in their initial stages and face regulatory and administrative barriers.
  • Changes in agricultural land use and territorial expansion consolidate the role of solar energy in Spain's energy transition.

Evolution of photovoltaic energy in Spain

Development photovoltaic energy in Spain Solar energy continues to advance, becoming one of the main drivers of the energy transformation. The country has achieved record figures in installed capacity and surface area occupied by solar parks, while interest from both individuals and companies continues to rise. However, this growth is accompanied by regulatory challenges, new dynamics in land use, and the need to maintain momentum to achieve the medium-term objectives set by the National Integrated Energy and Climate Plan (PNIEC).

During the last few years, the installation of photovoltaic solar systems has experienced a very significant acceleration, especially in less populated areas known as "empty Spain." Places like Teruel, Zamora, Cuenca, Palencia, and Ciudad Real stand out for their role in the expansion of the photovoltaic grid, already accounting for half of all the surface area dedicated to this type of energy in the country. This phenomenon represents a significant boost for renewable energy in traditionally agricultural or low-density areas, fostering new economic and employment opportunities in rural areas.

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Photovoltaics is growing in rural areas and changing land use.

Land use change for solar energy

In just four years, the surface area dedicated to solar installations has grown from around 20.000 to more than 49.000 hectares, according to official data. In provinces such as Zamora and Teruel, the increase has been exponential: in Zamora it multiplied by eight between 2022 and 2023, and in Teruel by eleven since 2016. Seville, for its part, leads the statistics with almost 6.000 hectares occupied. These numbers show that Photovoltaic solar energy has become the preferred option to take advantage of large areas of land, in some cases displacing previous agricultural activities.

The change in land use primarily affects dryland agricultural land, which represents 47% of the area covered by solar panels. Nearly 19.000 hectares have been converted from cereals and other traditional crops to renewable energy production. This phenomenon raises debates about the transformation of the rural landscape and the balance between agricultural production and electricity generation, although it also brings investment and income to areas traditionally affected by depopulation.

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Solar self-consumption remains high, although with slower acceleration

Solar self-consumption in Spain

El photovoltaic self-consumption continues to add installations in both the residential and industrial and commercial sectors. By the end of 2024, Spain had 8.137 MW of self-consumption power, of which 1.182 MW were added during that year alone. However, data for the first quarter of 2025 show a 17% decline in the growth rate compared to the previous year. This slowdown is especially noticeable in industrial facilities and is associated with the greater complexity and maturity time required for these projects compared to residential ones.

Forecasts indicate that, to meet the 2030 targets set by the PNIEC, the country needs to install at least 1.810 MW of solar self-consumption each year, practically doubling the current rate. To achieve this, industry experts point to the need for facilitate administrative procedures, increasing the variable rate in the electricity bill to encourage savings, and establishing tax incentives, as well as eliminating regulatory barriers in both processing and access to the grid.

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Energy communities and collective self-consumption: an upward trend, but with challenges

Energy communities and collective self-consumption

In parallel, the model of energy communities and shared self-consumption is gaining ground in the Spanish renewable energy sector. These schemes allow neighborhoods, municipalities, or groups to join together to benefit from the shared generation and use of solar energy. By 2024, there were already 659 energy communities established in the country, which represents a 44% increase over the previous year, and 8% of all Spanish municipalities have at least one. However, there is still a significant gap between the number of communities created and the facilities actually operating: eight out of ten still do not have active generation.

The lack of a specific regulatory framework and administrative difficulties remain the main obstacles to the expansion and development of these types of initiatives. This is emphasized by industry representatives and experts, who call for clear legislation and more streamlined processes to unleash the potential of these communities, especially in the area of ​​collective self-consumption and the possibility of sharing energy surpluses among multiple users.

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