Spain’s Solar Surge Tops the Generation Mix as Prices Slide and Storage Scales Up

Spain installed 10.1 gigawatts of solar capacity in 2025, with ground-mounted plants accounting for 8,966 MW of that total — a 31 percent year-on-year rise — lifting solar to the leading position in national electricity generation at nearly 23 percent of total output, according to industry association UNEF’s annual report.

The rapid build-out is squeezing asset returns. The average captured price for solar generation fell from €42.28 to €36.39 per megawatt-hour compared with the prior year, as expanding capacity and strong daytime output push wholesale prices lower. The number of hours when electricity traded at or below zero euros per MWh reached 797 in 2025, and by July 2026 that figure had already been matched.

UNEF identifies accelerated electrification of end users as the principal tool for rebalancing the market. Spain currently has 71.5 GW of new electricity demand seeking grid connection, either already approved or incorporated into network planning through 2030. Data centres, industrial facilities, hydrogen production, electric mobility and energy storage are among the sectors expected to drive that demand.

Storage deployment is already accelerating. Behind-the-meter installations grew 65 percent in 2025 to 540 MWh, lifting cumulative capacity to 2,745 MWh. Grid-scale systems total 261 MW in operation — 241 MW hybrid and 20 MW standalone — while projects that have already received permits represent 33 GW.

The sector’s economic contribution in 2025 was substantial: €9.84 billion added to GDP, 134,708 jobs created, and €3.21 billion in export revenues generated.

Source: PV Magazine