5 Reasons to Invest in Solar Energy in Spain
Renewable energies are one of the most attractive and strategic sectors when it comes to diversifying an investment portfolio. And in terms of preferences, some investment markets, like the Spanish market, are a safe bet. In this article we take a look at some of the reasons to invest in photovoltaic solar energy in Spain.
Why invest in photovoltaic solar energy in Spain?
1. Spain is one of the European countries with the most hours of sunshine. More specifically, the Iberian Peninsula has an average of around 2,500 hours of sunshine per year, a value more than guaranteed in cities such as Madrid, Badajoz, Seville, Cordoba, Alicante and Huelva. This is clearly a remarkable fact for anyone looking for the maximum return on their investments in solar energy, since the number of hours of sunshine has a direct impact on economic gains.
2. One of the most experienced countries in the world. As an early adopter of photovoltaic solar energy, and largely responsible its expansion worldwide, Spain has extensive knowledge of this technology. Thanks to its experience, Spain has built a solid ecosystem around renewable energies with developers, builders, lenders, off-takers, etc., making this country the place to be for investors from all over the world.
3. It offers tax benefits for investment in solar energy. Spain offers tax deductions on personal income tax and corporate income tax for the costs of installation and maintenance (including interest on bank loans).
4. The European Green Deal for 2050 will become a reality. Spain has set two clear objectives: decarbonization and promotion of renewable energies. As a member of the European Union, Spain will benefit from all the policies that will be implemented in favor of renewable energies. Recall that the EU wants to become the first climate-neutral continent by 2050, and all member countries are implementing strategies to meet this goal. In early 2021, the Spanish government approved the National Integrated Energy and Climate Plan (PNIEC for its acronym in Spanish), which aims to reach 39 GW of installed PV solar capacity by 2030.
5. Diversity of investment opportunities. The Spanish renewable market offers a wide variety of plans that can be matched to an investor's different risk profiles: operational projects with a feed-in tariff system, 2017 auction projects, auction projects under the new Renewable Energy Economic Regime (REER), merchant projects and PPAs. All currently have a place in the Spanish renewable market.
At Vector Renewables we have a team of experts in financial consulting services for renewable generation assets. Our specialized team can assist you in all types of financial transactions for investing in PV solar energy in Spain and in any other market. Contact one of our experts and we will help you with anything you need.