The Spanish climate has resulted in Spain being the top solar energy producer in Europe and the fourth largest in the world. The government has set a target of achieving 12% of its primary energy needs from renewable energy by the end of this year (2010) and was the first county in the world to require that any new buildings had to be fitted with a solar power system before planning permission would be granted.

The first commercially operating solar power station in Europe was opened in Seville and the operators claim that it generates 11 Megawatts of energy which is in fact enough to supply the needs of 6,000 homes, but the goal is to increase that figure to generate enough power to supply every home in Seville.

The solar power industry in Spain has seen many cut backs over the last year and that is mainly down to the incentives offered by the government which along with the feed-in tariff were over generous. This resulted in solar makers from all over the world operating in Spain and even the less well run companies were able to make a profit. The feed-in tariffs, where any excess energy can be sold back to the grid, were way above market rates so so the governments target for 2010 was actually reached in 2007, the year of its inception.

The consequences of these over generous tariffs were that traditional electricity charges went up, and this resulted in the Spanish Government being forced into scaling back the incentive scheme which in turn led the industry in Spain to suffer, such as solar manufacturers ceasing to trade.

The Spanish Energy Commission http://www.cne.es is now re-evaluating any incentives and feed-in tariffs so as to make the prices comparable with the more traditional markets.

To qualify for a solar installation grant a Licencia de Habilidad is required or if it is a new home a Licencia de Ocupacíon is necessary. The installation must be a minimum of 3,000 watts and the grants are in the region of 30% to 40% of the total cost. On an average size home it will take around 9 years for the savings that are made from the solar power to equal the initial investment and this term could be decreased when the latest feed-in tariffs have been finalised.

Further up to date information can be found at the European Solar Thermal Electricity Association, http://www.estelasolar.eu