Although it is clear that solar self-consumption is here to stay, the pace of new facility connections slowed down. After peaking in the last months of 2022, connections declined as electricity prices gradually stabilized and funding rose. Many households found the investment harder to justify, causing registrations to retreat through this year and into the third quarter. Overall, registrations fell by 36% compared with the previous quarter, when a record high was reached, and total numbers dropped below the prior year.
This trend is echoed in the latest report from the Generalitat General Directorate of Energy and Mining. It shows that despite the slowdown, Alicante surpassed Valencia to become the province with the most self-consumption facilities. However, the northern district still holds a larger cumulative strength due to a higher number of registrations nearby.
In the period from June to September, Alicante connected 3,048 new facilities for self-consumption, a 16 percent decrease from the same period last year, with total discharges reaching 3,616. Yet, compared with the last quarter of the prior year, hiring surged due to fears of rising winter electricity bills, and the decline has since exceeded 36%. Since then, 4,802 registrations have been recorded.
Evolution
The downward trend, already evident in the early months of the year, intensified as it progressed. The urgency sparked by soaring electricity prices after the Ukraine conflict has waned. Bernardo Luis, a delegate for the Valencian Community of the Spanish Photovoltaic Association (Unef), notes, “We still pay very high electricity costs, over 100 euros per megawatt, but not the 500 euros seen last year, so the sense of urgency has softened.” The housing sector has been the hardest hit, while companies continue to pursue energy cost reductions.
Another factor in the decline is rising interest rates. Marcos Lacruz, president of the Valencian Association of Companies for the Energy Sector (Avaesen), explains that higher loan costs have reduced the affordability of solar installations for many families that previously financed these projects.
AIDS
Alongside the general trend, Avaesen and Unef criticize delays in public aid for solar projects. Delays of more than a year and the widespread failure to pay subsidies requested nationwide dampen business momentum. Industry groups label this a drag on development and urge faster processing to sustain confidence in the market.
State quadruples self-consumption solar installations
Despite the slowdown, the sector has undergone a remarkable transformation in recent years. Fewer than 2,000 active facilities in the province at the end of 2020 have grown into a much larger network in a few years, according to Generalitat data: the total number of installations at present has risen to well over 31,000 in the Valencian Community, with Alicante and Elche among the leading municipalities. In terms of capacity, the region remains ahead in cogeneration and large tile factory plants, with hundreds of megawatts, while Alicante’s installed capacity continues to grow as more homes and businesses adopt solar.
About 87% of all active facilities are for private residences, with a smaller share for industry and warehouses.
Alicante and Elche lead the Valencian Community in registrations
Alicante and Elche register the highest numbers of self-consumption facilities in the community, with 2,222 and 2,219 facilities respectively. Orihuela, Xàbia, and Paterna follow in the ranking. In terms of capacity, Castellón’s l’Alcora and Onda stand out for cogeneration tied to large tile factories, highlighting a regional mix of residential and industrial solar adoption.