Why is Spain the best country to invest in photovoltaic?

Why is Spain the best country to invest in photovoltaic?

At the end of 2019, a study was published that ranked Spain as the most profitable photovoltaic market in the world for investment in renewable energy over the next decade.

The study published by a division of the company Fitch Group estimates that Spain will see an extraordinary increase in net solar power of 11,400MW between 2019 and 2028.

Why Spain?

There are several factors that have led experts to point to Spain as the most profitable market in the world for photovoltaic investments in the coming years. Spain has ideal geographical and climatic characteristics for the exploitation of solar energy.

The situation of solar energy in Spain has been very precarious during the last decade, however experts announce that the changes to come will be the launching pad for making our country a world reference in the generation of solar energy.

Keys to the expansion of photovoltaic plants in Spain

  • Trade agreements

Experts predict a considerable increase in private power purchase agreements, as well as in grid-parity projects selling electricity directly on the market.

  • Political stability

Political instability holds back investors who want to undertake their business plan in a certain country. Spain needs a stable government that gives security to investors and faces the problems related to permits and the launching of new auctions.

  • The repeal of the Sun Tax

With the repeal of the controversial “sun tax” and the economic incentives for the construction of small-scale solar systems, the market will experience significant growth in the installation and distribution of panels for private individuals.

In order to achieve the planned targets, Spain will have to install an additional 57GW of renewable energy capacity. Annual auctions of 3,000MW will be the main growth driver for the photovoltaic sector between 2021 and 2030.

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