What each town hall in the area rebates for going solar

Two neighbours in adjoining villages can pay very different taxes for the same installation. The difference sits in each town hall's tax by-law, and here they are side by side.

Captia Energy Team · Chartered, qualified engineers · Published 17 August 2026

The two taxes your installation touches

When you install solar at home, two municipal taxes come into play. ICIO, the construction tax, is paid once, on the budget of the works. IBI, the yearly property tax, is paid every year, and some councils cut it for several years when your home produces its own energy.

Each council decides on its own whether to rebate, how much and under what conditions, and approves it in its tax by-law. That is why the local map is so uneven.

The comparison, town by town

This table comes from the tax by-laws published by each council or in the Province's Official Bulletin. Each municipality's page carries the full requirements and the link to the source.

MunicipalityICIOIBI
Xàtiva50%50% × 4 years
Canals80%25% × 2 years
L'Alcúdia de Crespins90%40% × 4 years
Moixent95%30% × 6 years
Vallada30%10%
La Llosa de Ranes80%25% × 4 years
La Font de la Figuera95%25% × 5 years
Barxeta90%·
Rotglà i Corberà95%40% × 4 years
Llanera de Ranes30%15% × 3 years
Novetlè·35% × 1 years
La Granja de la Costera·15% × 5 years
Ontinyent95%50% × 4 years
L'Olleria95%·

The details that change the outcome

The percentage is only the headline. What decides your real saving is the small print of each by-law, and these are the patterns that repeat most in the area:

  • Almost all rebates must be applied for: they do not arrive on their own. Some must be requested before the works begin.
  • The ICIO rebate usually applies only to the part of the budget corresponding to the solar installation, not the whole job.
  • The IBI rebate usually lasts a set number of years and starts the tax year after the request.
  • Several by-laws require a minimum power, certified equipment, or that the installation is not mandatory under other regulations.

And if your town does not rebate

Some municipalities in the area have no approved rebate. It does not change the essentials: the main saving of a well-sized installation comes from the energy you stop buying, the surplus credited on your bill and the state income-tax deduction where it applies. The municipal rebate, where it exists, is the cherry on top.

When we prepare a study, we check the municipality's current by-law and, if there is a rebate, we file for it with the rest of the paperwork. It is part of leaving everything legal.

When the house is not in your name: inheritances, usufruct and the cadastre

The IBI rebate goes to the taxable person, meaning whoever appears as owner in the Spanish cadastre. Around here that creates some very common situations: inherited houses still registered under a father who has passed away, homes where the mother holds a usufruct and the children share bare ownership, or couples where the tax bill arrives in one name only. If the application is signed by someone who does not match the registered owner, the town hall can reject it on a technicality that has nothing to do with the panels.

So before filing anything, it pays to check the IBI bill and tidy up the cadastre if needed. There is another typical local case: the country house registered as rustic land or as scattered rural property. Some municipal by-laws only grant the rebate to residential properties, and a building classed as rustic in the cadastre can fall outside the scheme even if you live there all year round. It is not the norm, but it happens, and it always comes to light after the installation, which is the worst possible moment.

In our initial study we look at the registered ownership and property type before counting any rebate into the numbers. Promising an IBI discount the town hall cannot legally apply is the fastest way to lose a neighbour's trust, and trust is what we live on.

  • Inheritance with the cadastre never updated: sort it out before applying
  • Usufruct and bare ownership: be clear about who actually pays the IBI
  • Rustic or scattered rural property: check the by-law covers it
  • Bill in the name of an ex-spouse or a company: review it before signing anything

How the municipal rebate fits with the income tax deductions

These are independent, compatible schemes. The IBI or ICIO rebate comes from your town hall and applies to local taxes. Separately, the national deduction lets you deduct 40% of the investment on a base of up to 7,500 euros (RDL 2/2026, for installations up to 31-12-2026, with an energy certificate before and after the works). The Valencian regional deduction reaches 40% on a base of up to 8,800 euros, requires registration in the self-consumption registry, and any unused amount can be carried forward for up to 4 tax years. For a car charger there is a 15% deduction on a base of up to 4,000 euros.

The real mistake we see cuts both ways. Some people assume the schemes exclude each other and give up half the money. Others count the same euro twice when working out the payback, and end up with brochure numbers. The detail that causes the most grief is the double energy certificate for the national deduction: you need one before the works and one after to prove the improvement. If you install without the prior certificate, there is no way to produce it afterwards. It also pays to settle invoices through the bank, since cash payments are generally excluded from these deductions.

One warning about the charger: the MOVES III grant scheme ended on 31-12-2025. If anyone still sells it to you as a live grant, be wary of the rest of their quote. What remains for the charger is the 15% deduction, which is worth having, but it is a different thing.

Frequently asked questions

The house belongs to my parents but I am paying for the installation. Who gets the rebate?

The IBI rebate benefits the registered owner, in this case your parents, because they are the ones who pay that tax. The income tax deductions have their own rules about ownership and about who bears the cost, so it is worth deciding with your tax adviser whose name goes on the invoices before paying anything. It is a short conversation that stops you losing money because the wrong name ended up on a piece of paper.

Is the IBI rebate applied automatically?

No. Almost every municipal by-law requires a written application, usually with the installation certificate and proof that the system has been legalised. Each town hall sets its own deadline and procedure, and some require the request before the following year's tax falls due. If nobody asks, the town hall will not apply it on its own initiative. It is one more paper in the file, which is why we include it in the part of our job about leaving everything legal.

Can I combine the town rebate with the national and regional deductions?

Yes, they are compatible because they touch different taxes: the municipal one applies to IBI or ICIO, while the national and regional ones apply to your income tax. The national deduction reaches 40% on a base of up to 7,500 euros and the Valencian one 40% on a base of up to 8,800, each with its own requirements. What you cannot do is count the same euro twice when working out your payback. A tax adviser will sort it out quickly.

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