Installing solar panels in my community: Permits and requirements

There are a million of good reasons for a community of property owners deciding to have solar panels installed. As it represents a significant decision, it is important to understand all the necessary formalities both during and after the installation for it to be considered legal.

Can I install solar panels in my community of property owners?

Yes, there is nothing in legislation against communities of property owners installing solar panels. At present, any owner can ask for solar panels to be installed in their community, pursuant to Article 17.1 of the Horizontal Property Act. If you’re thinking about proposing this option at your next community meeting, let us tell you everything you need to know.

What permits are needed to install solar panels in the community of property owners?

If you like in a community of property owners and you want to install solar panels in your property, you must make sure to follow the right steps to avoid problems. The first step would be to ask for permission from your neighbours, explaining that you are going to embark on this project.

Afterwards, everybody else that lives in your community will have to vote about whether they approve the works or not. To be able to proceed, you will need 1/3 of the other owners living in your development to approve them. This is one of the keys enshrined in the Horizontal Property Act.

Regulations for the installation of solar panels in Spain

In recent years, the regulations for installing solar panels in Spain has been amended subject to Royal Decree 244/2019. Its aim is to regulate all aspects in relation to the consumption of solar power. Firstly, it revokes the infamous “solar tax”.

It also offers the option of totally collective self-consumption. The new regulations also provide details of the formalities and permits required by owners before they install solar panels.

Other requirements and permits

You must also bear in mind that you will need:

• The system design for the installation. Containing the technical information and documentation of the installation
• Access and connection permission. The installation firm will ask for the Self-Consumption Code (CAU), which is the unique identifier for the installation.
• The installation licence and taxes (town hall fees).
• The preliminary and construction administrative authorisation. LV installations and those with a wattage of less than 100 kW do not require this authorisation. For other installations, this varies depending on the autonomous community in which the panels are going to be installed.
• Environmental and public utility authorisation. Self-consumption installations with no surplus power generated, with a power of less than or equal to 100 kW should not entail any environmental impact or public utility formalities, unless they are located in a building subject to some form of official protection.
• Certificate of completion.
• Operation authorisation (only for industry, as this is not necessary for residential properties).
• The initial and subsequent periodic inspections.
• The self-consumption installation record in Industry.
• As well as the access contract for the self-consumption installation.
• The energy supply contract for auxiliary services.
• The surplus offset contract and representation contract.

Benefits

Thanks to the surplus self-consumption category, it is possible to save on community fees. As part of this self-consumption category, established under Royal Decree 244/2019, generators can sell surplus energy to the supplier or adhere to the simplified offset mechanism. This makes it possible to:

• Harness the energy you do not consume. The surplus energy that you do not use can be returned to the grid in exchange for a rebate on your bill.
• Increase the value of your community. A property with solar panels installed will see an increase in its value. Multiple property websites suggest that properties with solar panels installed are around 4% more expensive. Initially, buying a house with solar panels can be more expensive, as over time, this investment is repaid and ultimately offers you greater savings.
• A constant supply. Just as you can send power you do not consume to the grid, you can also access the grid in case the energy you generate is insufficient.
• Avoid administrative formalities. The company responsible for performing the installation will be responsible for performing the necessary formalities so that you can enjoy rebates for any surplus energy you generate.
• Respect the environment. You do your bit to combat climate change by switching to a completely renewable source of energy.
• Amortise the solar installation quicker. The surplus rebate system means you can enjoy double the savings. On the one hand, you save on energy consumption, and one the other, you amortise the installation much faster.

We recommend you read: Solar panels The big hope for lower energy bills.

How much can my community save with solar panels?

One of the reasons for making the switch to self-consumption are the medium- and long-term savings. In the case of communities of property owners, it is estimated that total savings can come to between 40% and 60% of annual electricity consumption.

The exact amount of savings depends on many factors, like location, the quality of the solar panels and maintenance. Furthermore, consideration must be given to the fact that you can apply for grants and subsidies thanks to the NextGenerationEU funds, income tax deductibles and property tax rebates, depending on the autonomous community in question.

How many neighbours have to reach an agreement to install solar panels?

As mentioned earlier, a third of your neighbours must approve the works for the solar panels to be installed. Those who have approved the installation will pay the common costs for the installation and maintenance of the panels.

A third of your neighbours must approve the works for the solar panels to be installed.

The rest of your neighbours will not pay any part of the bill, although if they decide to opt in later, they would have to pay a proportionate amount based on the updated value and legal interest.

What does a collective solar panel installation consist of?

This sustainable model making huge headway in becoming the norm. As part of this system, several consumers can harness a single solar panel installation, helping to reduce the number of years needed to pay off the installation and increasing the profitability of the system.

As part of a collective self-consumption installation, a generation meter is installed that counts the amount of energy generated and its distribution between the different members. Furthermore, the installation may include storage in batteries, allowing electricity accumulated during hours of over production to be harnessed at another time of the day.

Requirements

To adhere to this self-consumption category, users must meet different requirements. Firstly, all neighbours must be connected to a single transformation centre. No neighbour may be more than 500 m from the solar power plant. Finally, at an administrative level, all property owners must share the same cadastral registry reference.

How is the energy generated distributed?

The installation agreement is used as the basis for drawing up the distribution agreement, establishing how the solar power generated will be distributed based on the ownership share. Both the economic share and the share of power generated between the participants must be reflected in this instrument.

Royal Decree 244/2019 establishes the different types of distribution that self-consumers may choose between, depending on their circumstances.

Can I install solar panels with only certain neighbours benefiting from them?

This might be one of the questions you are asking yourself when considering whether to install solar panels. The answer is, yes. As explained above, only one-third of your neighbours need to approve the proposal.

Therefore, your proposal will get the green light if you secure this number of votes. All shared installation and maintenance costs will be assumed by these neighbours, while those who rejected the proposal will not have to pay a single cent. However, they can choose to opt in at a later date if they change their mind and want to benefit from the solar panels once they have been installed, paying an amount proportionate to the other neighbours participating in the system.

How much does it cost to install solar panels in a community?

The price of installing solar panels in a community of property is another core issue that you must take into consideration. In particular when it comes to budgeting. The total cost will vary significantly depending on your needs and the capacity you end up contracting.

Generally speaking, it costs around 1300 euros per kW of installed capacity. This type of solar panel is very versatile and can be positioned anywhere that receives sunlight. However, installing them on a roof is recommended. Here, they can be tilted suitably to achieve maximum efficiency at all times.Formalities for the installation of solar panels in a commonhold property

When it comes to installing solar panels in a commonhold property, it is important that you correctly plan each of the necessary formalities. Most involve paperwork between the different property owners interested, the public authorities and the electricity company.

The most important are:

• The purchase agreement between neighbours.
• The agreement with the electricity company and, subsequently, obtaining the necessary installation permits. These are mainly obtained from your local town hall before proceeding with the installation.
• Solar study to analyse and design the panels. In conclusion, solar panels in a community of property owners are one of the best solutions for harnessing the huge volume of sunlight that we see in Spain in order to reduce electricity bills. Furthermore, it will help to reduce your carbon footprint by using totally renewable sources of energy.

We recommend you read: Charging an electric car in a community of owners.

Although this topic might seem complicated at Mediterráneo, we’re here to help you and communities of property owners resolve all your queries. The easiest way of doing so is to send us a message using the Mediterráneo app, which is free to download by clicking on this link allowing your property administrator to get in contact and meaning that you can consult all stored messages in your owner profile.