The IBI (Impuesto sobre Bienes Inmuebles) is the yearly property tax you pay to the town hall. Spanish law allows each municipality to reduce it, by up to 50 %, for properties with a solar installation. It does not oblige them to. Whether you get a reduction, how much, for how many years and what you have to do for it is set in each town’s own tax ordinance, and the differences are large.
This guide compares the municipalities in the province of Alicante where we work most. We checked each one against its published ordinance on 30 September 2026. Ordinances change, usually from the start of a tax year, so treat this as a starting point and check the current text, or let us check it, before you count on a reduction.
For national and regional grants and tax deductions, see our subsidies page. The Región de Murcia has its own municipal ordinances and is not covered here.
What the law allows
The national law on local taxes (article 74.5 of the Ley Reguladora de las Haciendas Locales) lets municipalities give a reduction of up to 50 % of the IBI for properties with systems that use solar energy for heat or electricity, provided the installation is approved by the competent authority. Everything else, including whether to offer it at all, is up to the town hall.
What most ordinances have in common
- Homes. Most reductions are for properties in residential use.
- Not if it was compulsory. If the building rules required the installation anyway, for example on a new build, there is usually no reduction.
- You have to ask. The reduction is not automatic. It normally starts in the tax year after you apply, and is not paid back for earlier years.
- Proof. Usually the town hall paperwork for the installation (licence, declaración responsable or minor-works notice), the electrical installation certificate, the invoice and sometimes a technical report.
- Deadlines. Some towns give you only three months after the installation to apply. Miss it and the reduction is lost.
Town by town
The table below summarises what we found. The detail that matters for your house, such as a minimum system size per square metre or a cap in euros, is in the conditions column.
- In [Alicante](/solar-panels-alicante/) the reduction runs longer than elsewhere, five years, but is capped at €300 a year and at 20 % of what the installation cost you over the whole period.
- In [Elche](/solar-panels-elche/) it is 50 % for an individual system and 25 % for a shared one, and the system has to reach a minimum size in relation to the house.
- In [Dénia](/solar-panels-denia/) the percentage depends on the cadastral value of the home: the higher the value, the lower the percentage.
- In [Rojales](/solar-panels-rojales/), Teulada (Moraira) and Catral you have three months after the installation to apply.
- [Benidorm](/solar-panels-benidorm/) has no solar reduction in its current IBI ordinance.
How to apply
Where the town hall has handed IBI management to SUMA, the province’s tax agency, the application goes to SUMA; elsewhere it goes to the town hall. It is a written request with the documents the ordinance asks for. We collect the documents during the installation and can file the application for you, so the deadline is not missed. One customer mentioned it among the paperwork we arranged:
“Joëlle really arranges all the administrative hassle: changing energy supplier, permits, IBI discount, keeps you informed.”
Jeroen H., Google review, translated from Dutch
Across the region
We install across the Costa Blanca. When we survey your house, we check the current ordinance for your municipality and tell you what applies before you decide. Ask for a quote and give us the address.
