It felt almost like a broadcast. The 2018 reversal of the solar tax unlocked a renaissance for photovoltaics, breaking a profitability squeeze that had held the industry in check. Results appeared quickly: a noticeable uptick in both industrial and residential self-consumption projects, though far from what the sector would become. With power prices climbing, and European Union funds at play, Spain is poised to multiply installations and capacity by severalfold by 2030, meeting rising consumer demand for lower electricity bills. Job prospects grew so fast that large energy companies joined a field that had long been dominated by smaller operators. Yet the surge also carried risks: rapid growth requires skilled labor and reliable component supply to avoid a painful correction.
Today the industry comprises roughly 2,000 companies and about 58,000 workers, counting direct and indirect employment. A UNEF report shows that in 2021 Spain installed 1,203 MW of new self-consumption capacity, double the previous year. Domestic installations represented 32 percent of the total, while the industrial and commercial sectors accounted for 41 percent and 26 percent, respectively.
José Donoso, managing director of UNEF, explains the shift as regulations improved and electricity prices climbed. He notes that families have begun to place greater value on rooftop solar than on traditional bank deposits, a sentiment reflecting broader economic confidence in solar investment.
What drives individuals and businesses toward solar panels when it comes to practical decisions? The relentless rise in electricity prices, combined with incentives for self-consumption, makes solar energy a compelling option. A typical household system that once paid for itself in nine years now does so in roughly half that time. Industrial and commercial sites that previously needed four to six years to break even now see similar timelines. And the savings on electricity use can range from about 30 to 80 percent, sometimes more, depending on site specifics and consumption patterns.
Rafael Barrera, managing director of Anpier, points to other factors as well. He highlights that distrust about solar reliability and performance is fading as technology matures. “We have a very mature technology, and the market is really moving now,” he says.
Still, despite the rapid expansion since 2018, work remains to be done. Spain currently hosts around 3.2 gigawatts of installed solar, with a target of 15 gigawatts by 2030. While ambitious, the path looks feasible thanks to 1.4 billion euros in Next Generation EU funds aimed at accelerating deployment. Sector-based projections suggest installations could rise fivefold, lifting capacity from present levels toward half a terawatt, with estimates showing a direct investment of about 5 billion euros. Early expectations for this year place turnover near 1,920 million euros and installations around 2,400 MW.
To reach these objectives, competition has intensified as firms vie for customers, offers, and flexible financing models. Otovo, a Norwegian outfit operating in Spain, specializes in home self-consumption. Íñigo Amorbieta, its local managing director, notes that a standard home setup lands around 5,000 euros, which can be out of reach for some families. To broaden access, the company offers rental options at roughly 40 or 50 euros per month for 20 years, a financing route that allows customers to save more than they pay in rent, effectively avoiding a large upfront investment.
Holaluz stands out with a large customer base and a distinctive marketing approach. Carlota Pi, its CEO, emphasizes the goal of installing more solar capacity than the traditional recruiting pace would require. She highlights the potential to reach millions of rooftops across Spain and suggests that extending solar to neighboring roofs could dramatically scale up capacity—from hundreds to tens of thousands of megawatts—by leveraging a broader network of connected homes.
Solar Cover focuses on industrial self-consumption. Director Luis Navarro points to lithium battery storage as a key enabler, allowing excess energy to be stored and used during nighttime or price spikes. He describes this as a real revolution. The company is poised to install what could become Europe’s largest mega-battery at the Texathenea plant in Villena, a project six meters wide and weighing 30 tons.
Big electricity players are embracing self-consumption as a high-growth frontier. Recently, Repsol and Telefónica announced a joint venture called Solar360 to lead in services for individuals, communities, and companies. Iberdrola notes that about 40 percent of its 100,000 customers are managed under solar-related initiatives, while Naturgy serves a broad mix of industrial, residential, and SME clients, delivering significant savings in many cases.
However, forecasts for fast growth also raise concerns about a potential bubble and the capacity to sustain expansion. Workforce shortages and supply-chain disruptions threaten to delay installations, painting a cautiously optimistic picture. Consumer sentiment appears generally positive, though the OCU has flagged issues around compensation for overdelivery to the grid or questions about certain solar panel performance and durability. Greenpeace continues to advocate for self-consumption, underscoring benefits for emissions reductions, energy independence, and resilience against geopolitical shocks.