Spain Approves Controversial Solar Power Tax

by Ulrika Lomas, Tax-News.com, Brussels

13 October 2015

Spain's Council of Ministers approved on October 9, 2015, a royal decree imposing a tax on the self-supply of electricity generated by privately owned solar panels.

The tax will be introduced in the next six months, according to a statement from the Ministry of Industry, Energy, and Tourism. It will apply to solar power systems with a capacity of over 10 kilowatts.

Solar power systems located on Spanish islands will be exempt from the tax also.

The Ministry said the tax is intended to ensure that solar panel users contribute to the cost of maintaining the country's electrical grid, as they use it as a backup supply.

However, the tax has proven to be unpopular with the public and environmental groups and has been dubbed the "sun tax."

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