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Guide · Payback

Solar payback explained

For an example villa in Almería, solar pays for itself in about 6 years. Here is how that figure is worked out, what makes it shorter or longer, and how to find your own.

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The example home

About 6 years

for solar to pay for itself

  • Yearly use7,000 kWh
  • System4 kWp in Almería
  • Yearly saving€841
  • Example cost€4,900
Try your own figures

The worked example

How the example villa gets to about 6 years

A villa in Almería with a pool and air conditioning, using 7,000 kWh a year, with a 4 kWp system and no battery. Every step is shown, so you can check it.

StepFigureHow it's worked out
Solar made6,892 kWh4 kWp × 1,723 kWh per kWp a year, the best case for Almería
Used at home2,757 kWh40% of the solar, used as it is made
Saved on what you use€4142,757 kWh × €0.15, your price per kWh before tax
Surplus credited€248The other 4,135 kWh go to the grid and are credited at €0.06 per kWh
Tax saved as well€180The 5.11% electricity tax and 21% VAT you no longer pay on that energy
Yearly saving€841About €70 a month
Cost€4,900An example cost (€1,500 plus €850 per kWp), not a Go Solar price: Go Solar prices to confirm
PaybackAbout 6 years€4,900 ÷ €841 a year = 5.8 years

Go Solar's figure from recent installationsPayback range from recent Go Solar jobs, to confirm

What changes it

What makes payback shorter or longer

Your own figure depends on your use, your tariff and your roof. These are the things that move it most, shown for the example home.

Shorter

  • A higher price per kWhOn the regulated PVPC, at about €0.20, the example home pays back about 1 year sooner.
  • More use while the sun is upRunning the pool pump, air conditioning, washing machine and dishwasher in the day uses more of your own solar.
  • The 2026 income-tax break40% of the cost back, up to €3,000, with an energy certificate before the work and another after: the example home pays back about 2½ years sooner. The 10% break, up to €500, makes it about 1 year sooner. Ends 31 December 2026.
  • Grants and local discountsIn Almería, Andalucía pays 55% or more towards solar with a battery (battery storage). Some town halls in Murcia and Alicante give IBI and ICIO discounts.

Longer

  • A cheaper fixed tariffAt €0.12 per kWh, every kWh you make is worth less: the example home pays back about half a year later.
  • A roof facing east or west, or some shadeEast- and west-facing roofs still work well in southern Spain, but make a little less than the best case.
  • Most of your use in the eveningWithout a battery, more of your solar goes to the grid at the lower surplus price.
  • A system much bigger than your useSurplus can only bring the energy part of your bill down to zero. Beyond that it earns nothing, unless you have a virtual battery.
Work out your own payback Put in your own use, price and quote.

Surplus solar

How the credit for your surplus really works

Your electricity company does not pay you for the solar you send to the grid. It takes it off your bill, under the simplified compensation scheme (Real Decreto 244/2019).

  1. A credit, not cash

    The surplus is valued at the compensation price in your contract. On the regulated PVPC it is the market price for surplus, hour by hour.

  2. Month by month

    Each bill sets that month's surplus against that month's energy. Sunny months can't carry credit into winter.

  3. The energy part only

    The credit can bring the energy part of the bill down to zero, but not below, and never touches the standing charge or meter rental.

  4. Leftovers

    Anything above that is lost, unless your company offers a virtual battery that keeps it as credit.

The scheme is for systems of up to 100 kW, with one contract for your supply and a compensation agreement with your electricity company. We register the system and set the agreement up for you. Battery or virtual battery: which suits you?

Questions

Questions about payback

Does my electricity company pay me for the surplus?

No. Under the simplified compensation scheme, the surplus is valued at the price in your contract and taken off the energy part of that month's bill. It can bring the energy part down to zero, but not below. Some companies keep the leftover for you in a virtual battery.

Is about 6 years right for my home?

It is the figure for the example home: 7,000 kWh a year, a 4 kWp system and an electricity price of €0.15 per kWh. Your use, tariff and roof will move it. Put your own figures into the savings estimator, or book a free survey for an exact figure.

Does a battery make payback shorter?

A battery lets you use 70 to 90% of your own solar, so you save more each year, but it adds to the cost. Whether it pays back sooner depends on how much power you use in the evening and on the battery price. In Almería, the Andalucía grant pays 55% or more towards solar with a battery. See battery storage.

What happens once the system has paid for itself?

The saving carries on every year. Quality panels typically carry 25 years on output, and the inverter has a 10-year guarantee. Electricity prices change, which moves the yearly saving up or down.

Do grants and tax breaks count?

Yes: they lower the cost, so payback comes sooner. If your system is installed and paid for in 2026, you can deduct 10% of the cost, up to €500, from your Spanish income tax, or 40%, up to €3,000, with an energy certificate before the work and another after. We check what your home can claim at the survey.

More questions? See the solar FAQ.

Sources

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