Spain To Enact “Sun Tax”

October 10, 2015 Taxation in Spain

MADRID – The solar energy industry in Spain is about to take a significant hit, as the government sets forward to implement new taxes on solar generation facilities.

On October 9th the government of Spain announced that in the near future a new set of tax rules will be implemented regarding solar energy generation and installation.

While the full set of official is yet to be announced, it has been indicated that separate tax regulations will be implemented based on the potential production capacity of the installation, with different tiers for panels producing less than 10kW, those producing between 10kW and 100kW, and large-scale installations with potential capacity of 100kW.

Within six months, systems with potential generation of 10kW will not face any charge on the amount of power they generate, but will face a fixed charge based on their potential total output.

However, all other systems will face taxes based on their potential power capacity and the amount of electricity that they actually generate.

The new tax measures have already come to be called the “sun tax”.

Installations with a potential power output of between 10kW and 100kW will also be barred from selling electricity, and will be required to donate any excess supply of power to the national grid without compensation.

Any large-scale facility with a potential production of over 100kW will need to be registered prior to selling any electricity on the national sport market.

Photo By: Wayne National Forest