Installation companies are stretched thin as qualified personnel remain scarce. Demand continues to grow at a rapid pace, while shortages in some components complicate supply chains. Despite this, both businesses and households are increasingly turning to self consumption as a practical way to reduce bills and stabilize costs in a volatile energy market.
Last year saw a sharp increase in the number of facilities launched, nearly tripling the 2020 figure from 1,692 to 4,697. If the first quarter trend holds, this year could see another substantial rise. According to the latest balance sheet from the Ministry of Economy, between January and March a record 2,067 installations were registered in the General Directorate of Industry registry, underscoring the province’s momentum.
With these additions, the total number of active self-consumption installations in Alicante since 2019 reaches 8,756. Most installations feature photovoltaic panels; two small hydroelectric mills are noted, along with some small biogas or diesel cogeneration plants in places like Castellón and València. A photo caption notes solar panels powering an industry in the province.
These infrastructures are capable of delivering a nearly rated power of 83 megawatts, which roughly equates to the annual electricity needs of about 50,000 households using standard industry equivalences. Of the total registrations, about 85% are residential and 15% are used by industries, public buildings, or other sectors. When considering power output, local self-consumption accounts for 42% of energy produced, while 58% is utilized for economic activities, a distribution that makes sense given the larger scale of industrial energy use.
Regionally, the municipality with the largest share of self-consumption infrastructure in the province and across the Valencian Community includes Elche with around 700 installations, followed by Alicante (586), Orihuela (496), and San Vicente (426).
A Profitable Investment
Even as government measures approved on Friday reduce energy bills, industry players do not expect demand to falter. On the contrary, they anticipate continued growth for several more years until the market stabilizes. Quotes from industry leaders highlight that even if prices fall to around 100 or 120 euros, they would still exceed historical levels by four to five times. The takeaway is clear: energy costs must be stable, and self-consumption offers that stability, according to Marcos Lacruz, president of the Valencian Association of Energy Sector Companies. He notes that the sector’s advantage lies in reducing sensitivity to price swings rather than chasing market fluctuations.
Neighborhood Alliances to Share Solar Power and Lower Bills
Luis Navarro, manager of the Solar Covering company in Benidorm, explains that a mid-sized industrial facility can become fully amortized in about two years. He adds that once panel installations become widespread, next steps will include employing batteries to store energy for a steadier daily supply—a service already offered by several companies in the sector.
The main challenge now is a slowdown in sales driven by supply constraints. This includes stock shortages for domestic installations and a persistent lack of qualified personnel, particularly electricians and installers. Navarro notes that even before scaling up large solar farms, the industry feels the talent gap acutely.
Valencia Institute for Business Competitiveness Ivace will support 187 self-consumption projects in Alicante, allocating 4.26 million euros this year. The funding this year shifts to non-refundable subsidies rather than the reimbursement model Ivace commonly uses. Across the autonomous region, 444 grants worth 9.1 million euros will be awarded. Ivace also manages 31.7 million euros under the European Plan for Improvement, Transformation and Resilience, with 2,211 applications already received and 825 in Alicante. Municipal self-consumption projects will receive an additional three million euros. To date, 25 of 66 projects received by the Ministry in Alicante have reached evaluation, with more in the pipeline.