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Are solar panels worth it in Spain? An honest answer for homes on the Costa del Sol

When solar pays off in the Axarquía and on the Costa del Sol, how to work out your own payback period, and the cases where it makes less sense.

Click Solar team Published 3 min read

On the coast of Málaga the short answer is usually yes. But not in every case, and it is worth knowing why before you spend the money.

Why southern Spain is such a good place for solar

The Málaga coast averages 2,905 hours of sunshine a year, according to Spain's state weather agency AEMET. That puts the Axarquía among the best places in Europe to generate solar power. The same panels produce far more here than they would in the UK, Germany or Scandinavia.

Sunshine is only half of the story, though. What really decides whether solar pays off is how much of that energy you use yourself.

What makes a system pay for itself

  1. Using power during the day. Every kWh you use while the panels are producing saves you the full price you would pay the electricity company.
  2. A reasonably high bill. The more you spend on electricity, the more there is to save. Pools, air conditioning, electric water heaters and well pumps all add up.
  3. Getting paid for the surplus. What you do not use goes to the grid and is credited on your bill, at a lower price. We explain how in selling surplus solar power in Spain.
  4. Grants and tax rebates. Some town halls cut your IBI property tax, and the Junta de Andalucía has incentives for systems with a battery. See solar grants and tax rebates.

How to work out your payback

It is a simple sum:

Payback (years) = cost of the system ÷ yearly saving

The yearly saving has two parts:

  • Self-consumption: the kWh you use while the panels produce × what you pay per kWh.
  • Surplus credited: the kWh you export × the price your supplier credits for them (much lower).

A rough example

Take a 4 kWp system producing about 6,000 kWh a year. If you use 45 % of it directly (2,700 kWh) at €0.15/kWh and export the rest (3,300 kWh) at €0.06/kWh, you save roughly €600 a year. On a €6,000 system before any grants, that is about 10 years; with an IBI rebate or a grant, noticeably less.

These are round, illustrative figures. Your electricity prices, how much you use during the day and the real cost of your system will change the result. Panels today typically carry production warranties of 25 years or more, so most of their working life is net saving.

When it makes less sense

  • Heavily shaded roofs, from buildings, trees or the mountain behind you.
  • Very low bills: if you pay little for electricity, the saving takes a long time to cover the investment.
  • Homes used a few weeks a year with nothing running in the background. It can still work, but it needs a different design: read solar panels for a holiday home in Spain.
  • Roofs that need repairing soon: fix the roof first, then fit the panels.

How to get more out of it

  • Run the washing machine, dishwasher, water heater and pool pump in the middle of the day.
  • Check your contracted power (potencia contratada): many homes pay for more than they need.
  • Only add a battery if you really use a lot of power at night. We look at that in is a solar battery worth it in Spain?.

Get the numbers for your own home

Our whole team speaks English and Daniel Hill is a native speaker, so you can do everything in English. Send us a recent electricity bill through our bill check and we will work out your own figures, free and with no obligation.

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