The Spanish Congress has confirmed Royal Decree-Law 7/2026, part of a crisis plan in response to the conflict in the Middle East that entered into force on 21 March. It covers 80 measures and mobilises €5 billion, strengthening the role of renewable energy and electrification as pillars of Spain’s energy, industrial and security policy.
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The Spanish solar association Unión Española Fotovoltaica (Unef) welcomed the decision. “Today is a good day for solar energy and for Spain,” said Unef General Director José Donoso. The ratification signals that renewable energy is recognised as a strategic necessity.
Self-consumption and storage in focus
Of particular relevance to the PV sector, the decree extends the permissible distance for collective self-consumption from 500 metres to 5 kilometres, removing one of the main constraints on this particular model. It also introduces more flexible guarantee requirements for battery storage projects and aligns tenders for supply and demand in storage.
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“When international energy markets become unstable, those who have energy at home have the advantage. Self-consumption with storage is the best insurance policy for both citizens and Spanish companies,” said Donoso. The decree also introduces income tax deductions for self-consumption systems of between ten and twenty percent of the investment in 2026. Municipalities are explicitly recognised as promoters and participants in energy communities, for which a regulatory framework is to be established within three months.
Simplified project permitting
Unef highlights the simplification of the milestone system. In future, deadlines will be suspended when interim court or administrative measures are in place, and extensions to the fifth milestone will be possible. “These are measures we have been pushing for since before Decree-Law 7/2025, and they are finally becoming reality. This legal certainty for projects is essential to keep investments in Spain,” Donoso said. The decree also introduces a category of preferred energy projects aimed at shortening approval times for initiatives with high added value.
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The decree promotes electrification across the economy through a number of programmes: the Auto+ incentive programme for electromobility, a plan to scale up heat pumps, and tax deductions for energy-efficient building renovations, which Unef sees as a lever to fully exploit Spain's competitive advantage in photovoltaics.
Unef calls for abolition of production tax
Despite a positive assessment, Unef is calling for the definitive abolition of the tax on the value of electricity production (Impuesto sobre el Valor de la Producción de la Energía Eléctrica, IVPEE). The decree suspends the tax in the second quarter of 2026 and reduces it to ten percent in the first quarter.
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"The IVPEE was introduced to cover a tariff deficit that has now been largely written off. We welcome its suspension, but half a victory is not a victory. Spain needs a stable and predictable tax framework that encourages long-term investment, and this cannot be achieved with a tax that increases the cost of electricity and penalises storage. Its definitive abolition must be on the government's agenda," said Donoso. (nhp)
