Spain Adds 7,489 MW of Solar Capacity in 2023, Second-Largest Market in Europe

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has made significant strides in renewable energy, adding 7,489 MWac of new capacity across ground-mounted plants and self-consumption systems in 2023. This growth positions Spain as the second-largest market for solar installations in , trailing only Germany, according to a recent report by the Spanish PV business association UNEF.

The increase in capacity represents a 5.7% rise compared to 2022, bringing the total installed solar PV capacity in Spain to 32,488 MW by the end of 2023. Ground-mounted solar farms were the primary contributors to this expansion, accounting for 5,783 MWac (6,939 MWdc) of the new capacity, which reflects a notable 26.5% increase compared to the previous year. Meanwhile, the solar self-consumption segment added 1,706 MWac (2,047 MWdc), although this marked a 32% decline year-on-year. This decrease is seen as a sign of sector stabilisation following the significant installation surge driven by high power prices in 2022.

The growing capacity is also evident in the share of solar power within Spain's energy mix. In 2023, solar PV accounted for an average of 13.6% of the country's generation, a substantial increase from 10% in 2022, 8.1% in 2021, and 6.9% in 2020. This upward trend underscores the crucial role that solar energy is playing in Spain's transition to a more sustainable energy landscape.

The economic impact of the solar PV sector has been profound, contributing over EUR 18 billion (USD 20.1 billion) to Spain's GDP in 2023. While the direct GDP contributions from the solar sector decreased slightly by 1% to EUR 5.331 billion, the overall economic footprint—including indirect and induced effects—grew by 4%. Moreover, the sector has been instrumental in job creation, providing employment for over 160,000 workers across various roles.

In terms of innovation and investment, the Spanish solar PV industry has shown a strong commitment to advancing technology and efficiency. In 2023, the sector invested over EUR 610 million in research and development, dedicating an average of 3.6% of its revenue to innovation. This investment is three times higher than the average R&D spending of other Spanish industries, according to UNEF, highlighting the sector's proactive approach to improving performance and cost-effectiveness.

On the regulatory front, UNEF characterized 2023 as a year of stability. The government's revised National Energy and Climate Plan (NECP) set a new solar PV target of 76 GW by 2030, signaling robust support for the sector. UNEF welcomed the approval of 24,870 MW of solar PV projects in July 2024, interpreting this as a positive signal of investor confidence and the viability of proposed projects.

Despite these achievements, the domestic PV industry faces several challenges, including uneven regional progress. While many regions in Spain are embracing solar energy, some areas impose barriers such as retroactive taxes or moratoriums, which could hinder growth. UNEF has called for more supportive regulations, particularly for self-consumption and energy storage, to encourage further development.

Additionally, the association emphasized the importance of social acceptance and the integration of solar projects into communities. As Spain continues its journey toward a greener energy future, the emphasis on collaboration and local engagement will be vital in overcoming challenges and maximizing the benefits of solar energy for all stakeholders involved.

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