Spain’s solar energy sector experienced significant growth in 2025, adding 10,105 MW of new capacity and establishing solar as the nation’s primary power generation source. According to the Spanish PV association UNEF, solar energy now accounts for nearly 23% of the country’s electricity mix. While ground-mounted installations surged by 31% to reach 8,966 MW, the self-consumption segment saw a slight decline of 4%, totaling 1,139 MW. By the end of 2025, Spain’s cumulative solar capacity reached 46,286 MW for utility-scale systems and 9,276 MW for self-consumption, marking a pivotal year for the national energy transition.
The rapid expansion of solar generation has exerted downward pressure on wholesale electricity prices. The average price captured by solar assets dropped from €42.28/MWh in 2024 to €36.39/MWh in 2025, falling further to €29.68/MWh in the first half of 2026. This trend is linked to an increase in zero- and negative-price periods, with 797 such hours recorded in 2025. By early September 2026, the frequency of these price events had already surpassed the previous year’s total, highlighting the need for greater grid flexibility and enhanced storage solutions.
To address these market dynamics, the industry is prioritizing energy storage and the electrification of end uses. Behind-the-meter storage capacity grew by 65% in 2025 to 540 MWh, while utility-scale storage projects are also advancing, with over 33,000 MW of capacity currently permitted. Future demand is expected to be driven by data centers, industrial electrification, green hydrogen production, and electric mobility. Spain currently has 71.5 GW of demand connection capacity planned through 2030, with an additional 24 GW of requests pending.
Beyond its energy impact, the solar industry remains a major economic contributor. In 2025, the sector added €9.84 billion to Spain’s gross domestic product and supported 134,708 jobs. With €473 million invested in research and development, the industry maintains an innovation intensity of 3.6%, significantly higher than the national industrial average. Moving forward, UNEF advocates for streamlined administrative processes, more flexible grid-access permits, and reforms to the wholesale price-setting mechanism to better accommodate the rising share of renewable energy and ensure the long-term viability of PV assets.