Photovoltaic Self-Consumption Annual Report 2024

The photovoltaic self-consumption sector continues to evolve and establish itself as a key component in Spain’s energy transition. Each year, APPA Renovables publishes its Photovoltaic Self-Consumption Annual Report, a reference document that analyzes the sector’s growth, challenges, and opportunities.

In this article, we present a summary of the most relevant data from the 2024 report, including the evolution of installed capacity, economic impact, and future prospects.

Evolution of Self-Consumption in Spain in 2024

The self-consumption sector in Spain continues to grow and establish itself as a key component in the energy transition. However, 2024 has been a year of adjustment, with a slowdown in the installation of new capacity due to various economic and regulatory factors.

Throughout the year, 1,431 MW of new capacity was installed, reaching a total of 8,585 MW of photovoltaic self-consumption in the country. The industrial sector continues to lead growth with 1,085 MW installed (76%), while the residential sector has added 346 MW (24%).

This marks the second consecutive year in which the installation of new capacity has declined, reflecting a maturing market. However, figures remain above 2021 levels, demonstrating that self-consumption is not a passing trend but an increasingly consolidated energy solution.

Factors contributing to the slowdown:

End of the European Union’s Next Generation aid program.
Drop in electricity prices following the energy crisis.
Administrative and grid connection barriers.

Energy Generation and Consumption

Photovoltaic self-consumption continues to gain prominence in Spain, reaching 2024 with a generation of 9,243 GWh, which represents a 27.3% increase compared to 2023. This growth reflects the increasingly significant role of solar energy in meeting the country’s electricity demand.

Coverage of National Electricity Demand:

Self-consumption represents 3.7% of the total demand in Spain.
If data had been correctly accounted for, the share of renewables in electricity generation would be 58.4%.

Energy Wastage Losses:

2,094 GWh were not used due to lack of capacity in the grid and regulations on excess energy injection.
Economic loss: 88 million euros in 2024.
Since 2015, 497 million euros have been lost due to the inability to inject all generated energy into the grid.

Environmental Impact and Emissions Reduction

CO₂ emissions reduction: 1.9 million tons avoided in 2024.
Impact since 2015: Over 5.5 million tons of CO₂ avoided thanks to self-consumption.
Importance of storage: The integration of batteries helps optimize consumption and reduce wasted generated energy.

Evolution of Energy Storage and Batteries

Energy storage continues to advance in Spain, though with ups and downs in recent years. In 2024, 155 MWh of battery capacity were installed, showing a partial recovery after the sharp decline experienced in 2023, when installations were reduced to 128 MWh due to the end of incentives and lower electricity prices.

The industrial sector has been the main driver of this recovery, representing 60% of the new installed capacity. More and more companies are investing in storage to optimize energy consumption, reduce dependence on the grid during peak hours, and improve operational stability.

Although we are still far from the levels of 2022, when 406 MWh of batteries were installed, the trend points to sustained growth, especially in the industrial sector, where storage is becoming a key solution for energy efficiency and profitability.

Economic Savings for Companies and Consumers

Estimated Annual Savings in 2024

Residential Self-consumption:

157 €/kW installed.
Example: Installation of 4.7 kW → Annual savings of 736 €.
Amortization in 8.5 years.

Industrial Self-consumption:

101 €/kW installed.
Example: Installation of 180 kW → Annual savings of 18,127 €.
Amortization in 7 years.

Evolution of Accumulated Savings

Installations from 2023:

Residential: 1,714 € saved in 2024 (24.2% of investment).
Industrial: 22,996 € saved (33.3% of investment).

Installations from 2022:

Residential: 3,232 € saved (41.1% of investment).
Industrial: 37,290 € saved (63.4% of investment).

Considerations on Profitability

Useful life of an installation: +30 years.
Payback period: In most cases, less than 8 years.
Remaining years: Free energy for the user.

Economic Impact of Self-Consumption in Spain

Photovoltaic self-consumption not only represents a commitment to sustainability but also has a positive impact on the economy. In 2023, the sector generated 9,382 jobs, of which 7,018 were direct and 2,364 indirect, reflecting its importance in job creation within the renewable energy industry.

In economic terms, the contribution of self-consumption to the national GDP was 1.702 billion euros, with a direct impact of 1.526 billion and an indirect impact of 176 million.

For 2024, a slight contraction in these values is expected due to the slowdown in the installation of new capacity. However, the decrease in equipment costs could make projects more accessible, boosting the sector’s competitiveness in the medium term.

Problems and Barriers in the Sector

Regulations and Bureaucracy

An excess of administrative procedures slows down the installation of new plants.
Need for simplified grid access to facilitate the injection of surpluses.

Lack of Tax and Financial Incentives

25% tax deductions in personal income tax (IRPF) and corporate tax are needed to incentivize self-consumption.
Financial models like PPAs and leasing have facilitated adoption in businesses.

Grid Capacity

19% of the energy generated in self-consumption is wasted because the grid cannot absorb the surpluses.
The lack of grid integration discourages large industrial installations.

Lack of Clear Surplus Regulations

In July 2024, the CNMC published a report with proposals to improve the management of surpluses.
In October 2024, the Ministry of Energy started a consultation to modify self-consumption regulations.

Future Perspectives

Photovoltaic self-consumption plays a key role in Spain’s energy transition. According to the National Integrated Energy and Climate Plan (PNIEC), the target for 2030 is to reach 19,000 MW of installed capacity. To achieve this, it will be necessary to maintain a growth rate of at least 1,700 MW annually in the coming years.

For this goal to become a reality, it is essential to eliminate the barriers that still hinder the sector’s development. Some key factors to drive growth include:

Reduce regulatory barriers.
Increase tax incentives.
Improve grid capacity to absorb surpluses.
Facilitate access to financing for businesses and individuals.

In conclusion, the photovoltaic self-consumption sector in Spain is consolidating as a key pillar in the energy transition, but it faces significant challenges:

Slower growth due to lack of incentives and bureaucracy.
Greater energy waste due to lack of grid capacity.
Good savings opportunities for businesses and individuals.
Expansion prospects if regulatory and fiscal improvements are implemented.

The year 2024 has been a year of adjustment, but the potential remains high. If current barriers are resolved, the sector’s growth could accelerate significantly in the coming years.

Download the 2024 Photovoltaic Self-Consumption Annual Report APPA Renovables