Solar panels in Ibiza: the benefits at a glance.

It is now better than ever to switch to solar panels. Spain experienced a time where solar was opposed rather than encouraged, but those times are over. Below we list some of the things that may play into the decision to switch to solar.

Financial
Environment / sustainability
Being independent of power supply
Rising electricity prices

The financial benefits of solar panels in Ibiza

Whereas the Spanish government was not cooperative in favorable solar panel policies in recent years, they have changed regulations since late 2018 (mainly due to the Paris Agreement). This results in a number of things that make it beneficial to switch to solar panels in Ibiza.

You now receive an amount per kwh on returned (excess) power on the grid. This is around 5 cents per kwh and is expected to rise as power companies become more competitive.
There is no longer a “solar load,” which was present in the past (believe it or not).
There is even (albeit with a max number of applications per year) a grant available.

The point, of course, is to save as much money as possible. Depending on what is being installed, this will be an amount between €6,000 and €30,000. This big difference is in the number of solar panels and electricity use, as well as whether or not a battery wishes to be installed.

An example.

Install 25 panels: this would cost about 12,000 euros, fully installed and legalized. This will require about 65 square meters of roof space. No permits are required to install solar panels on a roof. Under optimal conditions, this system would generate about 13,000 kW / hour per year, which translates into just over 2,000 euros in electricity savings at an assumption of 16 cents per unit (incl. IVA). This does assume that all solar energy generated is used directly in the home. Under these conditions, the “payback period” is 6 years or even lower for larger installations. Panels are guaranteed to perform more than 90% of their original capacity for 25 years, so there is a long period after “payback” in which you will receive free power. The annual rate of return is more than 15%. We don’t need to explain that this is better than many alternatives.

Villa sizes and consumption patterns are very different on the island. It may not be realistic for all the power generated during the day to be used directly by the house. Excess power generated can be sold to the grid at 5cts per unit, but the most economical option would be to invest in a battery. Although these will add ~4-5k to the total cost (using the example above) and reduce the overall efficiency, this ensures that a very large portion of the power generated is used economically. Even with a battery, the return on your investment is very attractive. Should you switch to an electric car, this too will result in significant savings. The costs and high taxes associated with gasoline will be eliminated.

Environment / Sustainability

Ibiza has 300 hours of sunshine per year! Solar energy yields a lot more in Ibiza than in the Netherlands. It seems clear to us that this piece of energy is a waste not to be used. Solar energy is the future and contributes to a better, cleaner future. Whether it is to reduce co2 emissions, or to create cleaner air. It is a wise choice in the long run that also pays for itself quickly.

We also want to create an additional filter where we can indicate which houses are using solar panels. We don’t believe solar panels are the deciding factor in whether a house gets booked. But with a new generation coming up that values this more and more, this may be about to change.

Independence

We all experience it from time to time: power outages in Ibiza. Unlike in the Netherlands, the power supply is not at all stable. And is it nice to no longer depend on an unstable network? Where the neighbor has no power and complaining customers, this is not the case with you.

Rising prices

Prices rose sharply especially in the year 2017 and 2018, and then fell slightly again. But in general, Spain is known to be relatively expensive compared to other European countries, the price is erratic, and is expected to rise rather than fall.

What can we do for you?

Of course, we are not installers ourselves, and are happy to leave that to another party. We talked to a number of parties and selected the best, with ample experience on the island (dozens of installations accomplished by now).

We can estimate costs and revenues based on a Google maps view and last electricity bill. What can you think about?

Solar panels purchased favorably on a larger scale.
Real time monitoring of your consumption.
Batteries if you want to use self-generated energy in the evening and night (this can be a financially wise investment).
Related products such as heat pump, charging point for your electric car and advice on importing it.

Note: It is worth noting that the solar panels cannot be seen from the ground. We use an unobtrusive mounting structure that raises the back of the panel only 30 cm.