Sant Cugat del Vallès has allocated over €1 million in accumulated property tax (IBI) discounts between 2019 and 2025 to encourage solar panel installations. This makes it the municipality in Barcelona province that has dedicated the most money to this effort, according to a study by the Barcelona Provincial Council.
The study, which analyses the impact of these fiscal measures, also shows Sant Cugat has the highest number of properties receiving IBI discounts for solar panels. Other municipalities with notable, though smaller, investments include Corbera de Llobregat, Sant Boi de Llobregat, Sant Just Desvern, and Matadepera.
This trend in Sant Cugat is due to factors such as a high number of single-family homes, a high average income, and greater household investment capacity, the report states.
Shifting Focus to Multi-Family Homes
Albert Salarich, the local councillor for Energy, acknowledges that the measure has primarily benefited high-income single-family homes so far. He explained that this is typical when new technology is introduced for public use. Salarich expects solar panel installations to become more widespread as costs decrease, helping residents transition from fossil fuels to green energy.
Until 2024, Sant Cugat Council offered a 50% IBI discount for five years to homes installing photovoltaic panels. A new strategy introduced this year aims to include more multi-family homes and owner communities, while still encouraging single-family installations.
Currently, single-family homes installing photovoltaic panels receive a 40% IBI discount for five years. Multi-family homes that install them now get a 50% IBI discount for seven years.
Impact and Limitations of Incentives
Overall, the Barcelona Provincial Council study concludes that IBI tax breaks have been a critical local policy for boosting photovoltaic self-consumption. Municipalities that apply these incentives record up to 30% more solar installations than those that do not.
However, the report also points out some limitations. These tax breaks mean a reduction in revenue for councils, sometimes approaching 2% of IBI collection. Additionally, the benefits tend to concentrate among households with more economic resources. The study warns that without corrective measures, fiscal incentives for self-consumption could worsen existing inequalities, as most installations are in single-family homes and higher-income municipalities.
The report analysed data from over 250 municipalities in Barcelona province. It found that these incentives have mobilised tens of millions of euros in private investment in solar energy in recent years.
