Spain’s Castilla y León Proposes Solar Levy, Drawing Sharp Industry Criticism

Authorities in Spain’s autonomous community of Castilla y León are considering extending an existing environmental impact tax — the Impuesto sobre la Afección Medioambiental — to photovoltaic installations. The proposed charge would range from €600 to €2,000 per hectare, covering solar parks across the region.

The solar industry has responded sharply. José Donoso, head of national solar association UNEF, argued the initiative amounts to a revenue-raising exercise targeting solar projects. UNEF describes the measure as effectively a tax on future development for Spanish businesses and citizens.

The association raised four specific objections. Solar parks already pay multiple levies — including IAE, IVPEE, and IEE charges alongside municipal duties — while host municipalities receive around €10,000 per installed megawatt each year. The flat rate also discriminates geographically: low-sun northern areas would pay the same as sunnier southern zones, and agrivoltaic projects combining grazing, crops, and beekeeping would face disproportionate costs. Additionally, UNEF noted that every project within scope already holds a positive environmental assessment. Finally, the proposed exemptions fail to adequately cover shared self-consumption arrangements established under Real Decreto-ley 7/2026, potentially blocking businesses from accessing that option.

According to UNEF research, every euro invested in solar saves consumers eight euros on electricity bills. Over the previous 18 months, the sector delivered more than €17 billion in savings for Spanish households. Despite this record, revenue from the levy would flow into the regional general budget rather than directly benefiting the communities that host the installations, as reported by pv Europe.

Source: pv Europe