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Subsidies for self-consumption, batteries, renewable air conditioning and energy rehabilitation 2021

Subsidies for self-consumption, batteries, renewable air-conditioning and energy rehabilitation by 2021

Sectoral Energy Conference

The Vice-President has presented a first package of up to 1.12 billion euros in subsidies for self-consumption installations (up to 900 million euros) and behind-the-meter storage with batteries (up to 220 million euros). Regeneration and demographic challenge actions will be implemented through the PREE 5,000 Programme, with up to 100 million euros, the DLS 5,000, with up to 150 million euros, and through singular projects with a budget of up to 100 million euros. Individuals and the self-employed can now benefit from MOVES III, the electric mobility line. which the Vice-President presented at the last Sectoral Conference that features with a budget of up to 800 million. MITECO has also proposed a update of the line of aid for energy efficiency in industry under the National Energy Efficiency Fund to extend its validity until 2023.

The Minister for Ecological Transition and the Demographic Challenge, Teresa Ribera, has agreed with the Autonomous Communities and the autonomous cities of Ceuta and Melilla and the Spanish Federation of Municipalities and Provinces (FEMP) a set of proposals with a total budget of 1.67 billion to activate the first lines of action for self-consumption, behind-the-meter storage, renewable air conditioning, housing rehabilitation and urban regeneration. in municipalities with less than 5,000 inhabitants linked to the Recovery, Transformation and Resilience Plan.

During the meeting of the Sectoral Conference on Energy, the main body for cooperation between the central government and the autonomous communities in this area, Ribera explained to the territorial representatives the amounts and distribution criteria corresponding to these lines of action within the framework of the Recovery Plan, in accordance with the proposals for activating the first measures that the Vice-President passed on to the autonomous regions at the last Conference, held in January, and reminded them that the regions that commit 100% of their initial budget will be able to request additional amounts to increase the allocation of the lines that have been exhausted.

These will be multi-annual calls with a 2023 horizon to allow for better planning and management.

For all territorialised management lines, the Autonomous Communities must commit 80% of the initially allocated budget in the first year of operation. If this milestone is not reached, they must return half of the uncommitted budget, which may be allocated to other lines with greater absorption capacity.

PROMOTION OF SELF-CONSUMPTION

Of all the proposals put forward by MITECO, the most interesting for current and future owners of photovoltaic installations is a first aid package of up to 1.12 billion euros for self-consumption and battery storage behind the meter to power this sector. The main objective of these measures is to benefit households and SMEs.

Specifically, an initial budget of 450 million euros, which can be increased to 900 million euros, will be earmarked to promote self-consumption installations. in all economic sectors, including the tertiary and residential sectors and public administrations. This ensures that all agents, both public and private, can benefit from this boost to self-consumption.

An initial budget of 110 million euros, which can be increased to 220 million euros, to incorporate storage in batteries behind the meter in existing self-consumption installations. in these same areas, in line with the National Storage Strategy, to make it easier for businesses and households to have greater control over their energy management and consumption.

The line will finance the purchase of batteries emissions linked to self-consumption installations, both newThe aid will be available to those who purchase a renewable installation, as existingThe new batteries are intended for those who already have an existing installation and want to expand it by adding batteries as a storage solution.

The distribution of these funds will take into account both the gross value added (GVA) of the different productive sectors and the census of first homes in the case of facilities linked to the residential sector.

Battery self-consumption subsidies

RENEWABLE AIR CONDITIONING

The vice-president also presented a line of regional management initially endowed with 100 million euros, which can be increased to 200 million euros, for the installation of renewable energy systems for air conditioning and domestic hot water, with the aim of replacing or reducing the use of fossil fuels in this sector.

The incorporation of renewables in homes through aerothermal or geothermal heat pumps, through the use of biomass where it exists or through solar thermal energy allows savings on energy bills from day one.

The criteria for the initial allocation of the budget are determined by the main housing census.

SPECIFIC ACTIONS IN SMALL MUNICIPALITIES

The MITECO has also proposed to the Autonomous Communities a set of actions for regeneration and the demographic challenge whose investments will be carried out through three main blocks of action: the Energy Rehabilitation of Buildings Programme (PREE 5.000)the Local Sustainable Development Plan (DLS 5.000) and the promotion of singular projects, which together will allocate 350 million euros in 2021 to housing rehabilitation and urban regeneration.

The following are eligible under this programme actions involving the improvement of at least one letter in the energy rating of buildings through measures such as the replacement of air-conditioning installations with renewable energy or the improvement of the thermal envelope, among others.

The vice-president also proposed initiatives to the autonomous communities such as the DLS 5,000 Local Sustainable Development programme, with an initial budget of 75 million euros, which can be increased to 150 million euros in direct investments by local entities for actions to reduce energy demand and consumption in public buildings and infrastructures, renewable electricity generation facilities for self-consumption, renewable thermal generation facilities, etc.

Vice-president Ribera has also announced the activation of a centrally managed competitive concurrence programme in collaboration with the autonomous communities, which will allocate an initial budget of 100 million euros for unique energy transition projects to settle activity and population in the territory.on energy communities, sustainable mobility, energy rehabilitation and regeneration or deployment of renewables with the aim of providing incentives for energy improvement actions. 

ALLOCATION CRITERIA

The proposal for the initial distribution of these lines, aimed at small municipalities, includes both those with less than 5,000 inhabitants in Spain according to the latest official data from the Municipal Register of Inhabitants as of 1 January 2020, and those municipalities that exceed this threshold but have a population of less than 20,000 people, are located outside urban areas according to the Atlas of Urban Areas of the Ministry of Transport, Mobility and Urban Agenda and have a population of less than 5,000 inhabitants in all of their nuclei.

ENERGY EFFICIENCY IN INDUSTRY

In addition to these lines of action included in the Recovery Plan, the Ministry has also passed on to the communities the update of the energy efficiency aid line in industry financed by the National Energy Efficiency Fund. Through the modification of the Royal Decree that regulates this line, the MITECO will extend its validity until 2023. It will also remove one of the aid limitations set out in the regulation so that the proportion of aid that can be allocated corresponds to that set by the European implementing regulations, which will benefit, in certain cases, small and medium-sized enterprises.

SUSTAINABLE MOBILITY

In line with the aid and actions aimed at the installation of self-consumption and the purchase of battery storage systems, the Vice-president reminded the communities of the advances in the electric mobility line that she presented at the last Sectorial Conference in April. The MOVES III Planapproved by the Government, 400 million, which can be increased to 800 million euros in direct aid tothe installation of recharging infrastructures and the purchase of electric or plug-in hybrid vehicles. This aid is already available for individuals and the self-employed to benefit from it and to acquire vehicles and recharging points subject to this aid. The MOVES III Plan will remain open until at least 31 December 2023.

RECOVERY PLAN

All the aforementioned actions are part of the Recovery, Transformation and Resilience Plan, of which MITECO will manage 15,339 million euros, 21.95% of the total. Of this budget, 5,390 million will be allocated to energy-related actions in areas such as electric mobility, energy rehabilitation and urban regeneration in municipalities with less than 5,000 inhabitants, deployment of renewable generation, promotion of smart grids, deployment of flexibility and storage, renewable hydrogen, just transition and energy efficiency and sustainable mobility in the General State Administration.

Source: Ministry for Ecological Transition and the Demographic Challenge

Deciding to switch to self-consumption?

Now that you know that new subsidies are planned for the installation of solar panels, the renovation of existing installations, the expansion or purchase of storage systems and sustainable mobility, is the best time to switch to self-consumption. Y if you already have an installation, you could think about extending it!. In future articles we will talk about the advantages of improving your energy rating or adding batteries to your photovoltaic installations. Don't miss them!

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