Is the IRPF deduction compatible with IVACE subsidies?

Yes, they are totally compatible. However, at the accounting level you must take into account that in order to calculate the basis for the IRPF deduction, the amount of the public subsidies that you have received or that you have been granted will be subtracted.

Can batteries be included in the tax deduction?

Yes, for self-consumption systems installed in 2026, both photovoltaic panels and complementary components (inverters and storage/battery systems) and associated labor are included in the deductible expenses.

What happens if the EU Next Generation grants are already closed?

Although the Next Generation funds ended, photovoltaic self-consumption in the Valencian Community continues to be highly profitable in 2026 thanks to the 40% deduction in the Generalitat de Catalunya's income tax and local discounts on IBI.

Can I apply the deduction if I live in a community of neighbors?

Of course. If your community of owners in Valencia or Alicante decides to install collective solar panels on the roof of the building, each owner will be able to deduct the cost of their proportional share.

Do the solar panels need to be cleaned and how often?

Periodic cleaning of the panels, usually once or twice a year depending on the location and accumulation of dust or dirt, is recommended to ensure that the system performs at its maximum capacity.

Does performance decrease over time?

Solar panels have minimal natural degradation, losing approximately 0.5% efficiency per year. Even so, they still offer excellent performance and have production guarantees of up to 25 years.

What happens if a panel in my system breaks or malfunctions?

If a panel suffers a breakdown, our maintenance and monitoring service will allow us to detect it. In addition, the equipment has extensive manufacturer's warranties that cover repair or replacement.

Do I have to do anything if it rains or storms?

You don't have to do a thing. Photovoltaic installations are designed, prepared and tested to withstand adverse weather conditions, including rain, hail and strong winds.

What can I do if I find that my system is not performing as well?

If you notice an unusual drop in production through the monitoring application, please contact our technical team. We will review the system to identify and resolve any issues.

IRPF Deduction and Tax Benefits for Photovoltaic Installations in the Valencian Community (2026)

Are you thinking of switching to photovoltaic self-consumption in Valencia, Alicante or Castellón? 2026 is the perfect year to take the plunge. In Energías Renovables HG we help you not only to reduce up to 80% your electricity bill, but also to squeeze the most of the IRPF deduction and tax benefits for installing solar panels in the Valencian Community.

Whether you are an individual looking to shield your home against energy tolls, or you manage a company that needs to cut operating costs and improve its sustainability, the Generalitat Valenciana and the different municipalities offer historical incentives.

Tax Benefits and Personal Income Tax Deductions for Individuals (Households and Communities of Residents)

If you want to install solar panels on your primary residence or second home in Valencia, this year’s incentives multiply the profitability of your investment from day one.

Autonomous Community Personal Income Tax Deduction in the Valencian Community 2026

The Generalitat Valenciana maintains one of the most attractive fiscal bets in Spain to promote the residential energy transition:

40% deduction in the regional section of the IRPF for electric self-consumption installations in your primary residence.
20% deduction if you make the photovoltaic installation in your second residence (as long as it is not linked to an economic activity).
Annual maximum limit: You can deduct a maximum base of up to €8,800. If the amount of the deduction exceeds your gross tax liability for this year, don’t worry! The regulations allow you to spread the surplus over the following four years.

Municipal Allowances: IBI and ICIO in Valencia, Alicante and Castellón

In addition to the direct savings on your income tax return, the local councils of the Valencian Community reduce your local taxes drastically:

IBI (Real Estate Tax) rebate: Enjoy up to 50% discount on the IBI bill for a period of 3 to 5 years in most Valencian localities (such as Valencia capital, Paterna, Torrent or Elche), and up to 10 years in municipalities such as Castelló de la Plana.
Reduction of the ICIO (Tax on Constructions, Installations and Works): Practically all the municipalities of the region apply a rebate of up to 95% in the rate of the building permit for the placement of your solar panels.

Key Requirements for Private Individuals in 2026

To ensure the approval of your tax deduction by the Tax Agency you need:

Energy Efficiency Certificate (EEC): It is essential to have a certificate issued before the start of the works and another one afterwards (valid until January 1, 2027 at the latest) that proves in a documentary way the improvement of the energy performance of the property.
Traceable method of payment: All payments to the installation company must be made by bank transfer, credit/debit card or nominative check. Cash payments are not accepted.

Incentives and Tax Deductions for Corporations and SMEs

In 2026, the transition to clean energy is not only a corporate responsibility, but one of the most solid financial strategies to increase the profit margin of your business in the Valencia Region.

Deductions for Investments in Sustainable Criteria

Companies and self-employed individuals who install photovoltaic systems in their industrial buildings, commercial premises or offices can benefit from significant incentives in corporate income tax or in the net yield of their economic activity:

Accelerated amortization: Allows for a much faster tax amortization of investments in facilities for self-consumption of clean energy, freeing up cash immediately for the company.
Compatibility with IVACE 2026 Grants: The Instituto Valenciano de Competitividad Empresarial (IVACE) maintains active direct subsidy programs that cover between 30% and 40% of the cost of the installation, with extra incentives if lithium storage batteries are incorporated.

Local Competitive and Tax Advantages

Reduced Operating Expenses (OpEx): By generating your own electricity during peak business hours, you protect your business from the volatility of the wholesale energy market.
Exemptions in the IAE (Tax on Economic Activities): Numerous Valencian city councils give a rebate on the IAE quota to companies that demonstrate that they cover a significant percentage of their electricity demand with their own solar panels.

Need help?

In ENERGÍAS RENOVABLES HG we help you to squeeze every euro of savings in your photovoltaic installation.

Find out how to recover up to 40% of your investment in solar panels through the regional IRPF deduction in Valencia, Alicante and Castellón. In addition, we guide you on IBI and ICIO rebates in force for the year 2026, and the latest grants from the Generalitat for individuals and companies. Trust our experts to protect your energy and tax savings.

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Frequently asked questions on cleaning and performance

Is the IRPF deduction compatible with IVACE subsidies?
Yes, they are fully compatible. However, at the accounting level, you must take into account that in order to calculate the basis for the IRPF deduction, the amount of the public subsidies that you have received or that you have been granted will be subtracted. The net saving is still extraordinarily high.
Can batteries be included in the tax deduction?
Yes. For self-consumption systems installed in 2026, both photovoltaic panels and complementary components (inverters and storage/battery systems) and associated labor are included in the deductible expenses.
What happens if the EU Next Generation grants are already closed?
Although the Next Generation funds ended their previous calls, photovoltaic self-consumption in the Valencian Community continues to be highly profitable in 2026. This is because the combination of the 40% deduction in the Generalitat’s Personal Income Tax, the new IVACE energy efficiency lines and the IBI discounts more than compensate the old European subsidies, reducing the amortization period of the installation to less than 4 or 5 years.
Can I apply the deduction if I live in a community of neighbors?
Of course. If your community of owners in Valencia or Alicante decides to install collective solar panels on the roof of the building, each owner will be able to deduct the cost of their proportional share, as long as they comply with the issuance of the corresponding energy certificates of the building.
Want to know exactly how much you can save on your roof?
In Energías Renovables HG we take care of the whole process “turnkey”: from the personalized photovoltaic study and the technical installation, to the legalization and preparation of all the necessary documentation (energy certificates and invoices) so that you can apply your tax deductions without errors for the income tax campaign. Try our solar calculator and request a 100% personalized study to find out how much you will save on your taxes and on your bill.