Spain Rooftop Solar Market- Growth, Trends, and Forecasts (2022 - 2027)

Spain's Rooftop solar market is expected to rise at a CAGR of 9.5% during the forecast period of 2022-2027. Factors such as increasing environmental concerns, favourable government policies, incentives and tax benefits for solar panel installation are expected to drive the market during the forecasted period for the Rooftop solar market.

• The industrial sector is expected to dominate the market during the forecast period, owing to high tariffs for electricity from central grids.

• Strong government support and initiatives to develop green energy sources in the region are likely to drive the Rooftop solar market.

• Commercial and industrial sectors are showing a growing interest in distributed solar power generation due to its various economic benefits. It is also a constant energy source that can eliminate downtime and equipment damage caused due to voltage fluctuations in conventional power grids. This is likely to create an opportunity for the market to grow shortly.

Key Market Trends

Commercial and Industrial Segment expected to witness significant growth Market

• Spain is one of the European countries getting the maximum hours of sunshine. The country primarily had an essential role in the development of solar power. Several grants, like an investment of EUR 6 million, were sanctioned for grid-connected solar power by the Spanish government in 2020 to encourage the solar industry. As of 2021, Spain's installed solar photovoltaic (PV) capacity was 15.04 GW after adding 3.49 GW in 2021, which was higher than 2020's capacity addition of 2.64 GW.
• Rooftop solar installations have been surging in Spain as the country is trying to transition to cleaner fuel sources, and the Ukraine-Russia war has accelerated the process. For instance, according to the Spanish Solar Photovoltaic Association (UNEF), in 2020, rooftop solar PV installation was recorded at 596 MW, compared to 459 MW in 2019.
• In May 2021, the new Spanish government grants were announced to support the deployment of self-consumption solar projects. These projects are expected to result in 3.5 GW of additional capacity, according to the Union Espanola Fotovoltaica (UNEF). The policy is expected to allocate EUR 200 million (USD 243 million) in support for the residential sector and public administrations, EUR 150 million for industry and the agricultural segment, and EUR 100 million for the services sector.
• the REPower European Union strategy aims to develop 632 GW of solar rooftop capacity by 2030, which is essential for the region to achieve 1 TW of solar capacity by 2030. European Union aims to achieve this target by imposing new buildings to install solar rooftop systems and investing EUR 1 billion to develop solar panel manufacturing facilities.
• Hence, owing to the above points, the Industrial segment is likely to see significant growth in the market during the forecast period.

Strong government support and initiatives to develop green energy sources Likely to Drive the Market

• The Spanish government scrapped a controversial "sun tax" that halted the growth of the Spanish renewables sector. The new law will also mandate 35% of electricity share from green energy by 2030. The boom in solar power installations was faster than anticipated. The costs for grid-connected solar power were not excluded, leading to a fast increase in facilities.
• As of 2021, the Spanish PV sector had no public aid or regulated remuneration systems. All new power was built leveraging the PPAs or with exposure to the market (merchant). Spain was the leading European market in PPAs in 2020. However, according to SolarPower Europe, Spain is expected to have a total installed solar PV capacity of 29.0 GW by 2024 in the medium scenario, thus making it the second largest solar market in Europe. In this process, corporate sourcing, Power Purchase Agreements (PPAs), RES auctions, grid access regulatory framework, and self-consumption will play a vital role in the development.
• The solar rooftop installation is expected to grow at a relatively faster rate in the European region, owing to the factor that most of the countries in the area want to become independent of Russian gas and oil as soon as possible. Further, the European Commission is focusing on using solar rooftops and aiming to install 15 TWh of solar rooftop capacity by the end of 2022.
• In September 2020, the government of Spain announced its plan to inject EUR 181 million of state funds into renewable energy projects in seven regions, aiming to boost employment and cut carbon emissions. These subsidies are part of the 316 million euros Madrid will pour into innovative projects - an amount that could be topped up with European Union recovery funds.
• Hence, the above points will likely propel the demand for rooftop solar in the region during the forecast period.

Competitive Landscape

The Rooftop solar market is moderately fragmented. Some of the key players in this market Holaluz-Clidom SA , X-ELIO Energy., Rekoser, Exiom Solution S.A. , and Zytech solar.

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