Spain Photovoltaic Market Research Report By Type (Organic PV, Inorganic PV)- Forecast to 2035

Spain Photovoltaic Market Overview

As per MRFR analysis, the Spain Photovoltaic Market Size was estimated at 1.71 (USD Billion) in 2023. The Spain Photovoltaic Market Industry is expected to grow from 1.81(USD Billion) in 2024 to 3.54 (USD Billion) by 2035. The Spain Photovoltaic Market CAGR (growth rate) is expected to be around 6.304% during the forecast period (2025 - 2035)

Key Spain Photovoltaic Market Trends Highlighted

Spain is experiencing a significant shift in its energy landscape, primarily driven by the increasing focus on renewable energy, particularly solar power, as part of its commitment to the European Green Deal. The deployment of photovoltaic systems has gained momentum due to government initiatives aimed at promoting sustainability and reducing carbon emissions. Key market drivers include favorable policies, such as financial incentives for solar installations, which encourage both residential and commercial sectors to adopt solar energy solutions. 

The growing awareness of climate change impacts has led to higher public interest in renewable energy, further amplifying market growth.In recent years, Spain has implemented ambitious plans to increase its solar capacity, which are consistent with the nation's goal of achieving 100% renewable energy by 2050. Additionally, the efficiency and affordability of solar panels have been enhanced by technological advancements in photovoltaics, rendering them an appealing alternative for energy consumers. 

Another potential avenue for bolstering the photovoltaic market is the potential for innovation and advancements in storage solutions, as energy storage becomes increasingly critical for enhancing the reliability of solar energy supply. There is an abundance of opportunities in this market, particularly in rural areas where solar farms can be developed without significant land-use conflicts. Another opportunity for development is presented by the Spanish government's support for local manufacturing of solar components, which promotes the creation of jobs and economic benefits within the country. 

It is imperative that stakeholders adjust to the evolving photovoltaic market and capitalize on the potential of solar energy as a foundational component of Spain's energy future.

   

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Spain Photovoltaic Market Drivers

Government Incentives and Policies

The Spain Photovoltaic Market Industry is significantly driven by favorable government incentives and policies aimed at promoting renewable energy sources. The Spanish government has set binding targets under the National Energy and Climate Plan, which aims to achieve a minimum of 74% of electricity generation from renewable sources by 2030. This initiative is supported by financial mechanisms like the Renewable Energy Auction, which has successfully awarded substantial projects, with 4 GW capacity auctioned in 2020 alone.

The 2021 Energy Law further enhances the regulatory framework, facilitating grid access for photovoltaic energy producers and encouraging more investments and installations. Reports from the Ministry for the Ecological Transition indicate that these policies are projected to lead to increases in renewable installations, thus substantially benefiting the Spain Photovoltaic Market.

Technological Advancements

Rapid technological advancements in photovoltaic systems are propelling the growth of the Spain Photovoltaic Market Industry. Innovations in solar panel efficiency, energy storage technologies, and smart grid integration are resulting in lower production costs and enhanced system performance. For instance, the adoption of bifacial solar panels has increased solar energy capture significantly, leading to higher overall efficiencies and reduced Levelized Cost of Energy (LCOE).

According to the Spanish Photovoltaic Union, the average efficiency of photovoltaic panels has climbed from 15% in 2010 to around 20% currently, indicating a direct correlation between technological improvements with market growth.

Environmental Awareness and Consumer Demand

There is a growing environmental consciousness among the Spanish populace that is driving demand for renewable energy solutions such as photovoltaic systems. Recent surveys conducted by environmental advocacy groups revealed that over 70% of the Spanish population is in favor of increasing renewable energy production, highlighting a significant shift towards cleaner energy sources. 

This heightened awareness has translated into increased demand for solar solutions among residential and commercial consumers who are seeking to reduce their carbon footprints.Furthermore, the Spanish government's commitment to achieving carbon neutrality by 2050 has further fueled this mentality, thus propelling the Spain Photovoltaic Market Industry.

Declining Costs of Solar Technology

The Spain Photovoltaic Market Industry is also propelled by the substantial decline in the costs associated with solar technology. According to data from the International Renewable Energy Agency, the cost of photovoltaic systems has dropped by nearly 90% since 2010, making solar energy more accessible and attractive to consumers. As a result, the increasing affordability of solar panels and installation services encourages widespread adoption across residential, commercial, and industrial applications in Spain.

This price trend aligns with the ongoing development of competitive energy markets in Spain, further stimulating growth in the photovoltaic sector.

Spain Photovoltaic Market Segment Insights

Photovoltaic Market Type Insights

The Spain Photovoltaic Market is characterized by its diverse Type segmentation, which includes Organic Photovoltaic (OPV) and Inorganic Photovoltaic (IPV) technologies. Both segments are crucial in shaping the future of solar energy in Spain, a country that has undertaken significant steps towards renewable energy, particularly in the wake of governmental policies promoting green initiatives and sustainability. Organic PV technology involves the utilization of organic materials that can enable the production of solar panels that are lightweight, flexible, and potentially less expensive than traditional counterparts.

These characteristics make Organic PV ideal for applications where traditional solar panels may not fit, including architectural elements and portable electronic devices. Meanwhile, Inorganic PV technology typically includes silicon-based solar cells, which are more widely accepted and have strong performance metrics, including higher efficiency rates, making them crucial for large-scale solar farms and installations across the Spanish landscape. The dominance of Inorganic PV in the market stems from its robust efficiency and reliability, meeting the energy demands of both residential and commercial sectors efficiently.According to industry insights, Spain benefits from a significant number of sunny days annually, providing a substantial advantage to both Organic and Inorganic PV technologies. 

The competitive landscape in the market is driven by ongoing Research and Development, resulting in improved technologies that enhance performance and reduce costs significantly. With the Spanish government aiming for substantial solar energy targets, both Organic and Inorganic segments will likely see substantial growth and investment in infrastructure, converting Spain into a key player in the European renewable energy landscape.As innovation continues to evolve, particularly in the Organic PV segment, it promises new opportunities that may facilitate widespread adoption by consumers and businesses alike. 

The continual push towards sustainability serves as a backdrop for the growth dynamics within the Spain Photovoltaic Market, highlighting the pivotal role that both types of photovoltaic technologies will play in achieving national and international renewable energy goals.

   

Source: Primary Research, Secondary Research, MRFR Database and Analyst Review

Spain Photovoltaic Market Key Players and Competitive Insights

The Spain Photovoltaic Market has witnessed remarkable growth in recent years, capitalizing on the increasing demand for renewable energy and favorable government policies aimed at reducing carbon emissions. This market is characterized by dynamic competition among various players offering innovative solar technologies, installation services, and project financing solutions. Companies within this market focus on enhancing their competitive edge through advancements in photovoltaic technology, strategic partnerships, and a strong emphasis on sustainability practices. 

In a landscape driven by the need for clean energy sources, understanding the competitive insights of the market is crucial for stakeholders aiming to navigate the complexities and seize opportunities for growth.Solarpack has established a strong foothold in the Spain Photovoltaic Market, renowned for its commitment to high-quality solar projects and sustainable energy solutions. The company's strategic focus on large-scale solar plants has positioned it as a key player in the sector, with a significant portfolio of operational solar farms across the country. Solarpack's strengths lie in its technological expertise and effective project management capabilities, allowing it to develop efficient and cost-effective solar solutions that cater to local energy needs. 

Additionally, the company's robust relationships with investors and local stakeholders bolster its market presence, enabling it to capitalize on emerging opportunities in the rapidly evolving renewable energy landscape of Spain.Enel Green Power has a prominent presence in the Spain Photovoltaic Market, recognized for its extensive portfolio of renewable energy projects and innovative technologies. The company offers a range of key products and services that include the development, construction, and operation of solar power plants, contributing significantly to the country's energy transition. 

With a strong emphasis on sustainability, Enel Green Power continually invests in research and development, ensuring it remains at the forefront of technological advancements in solar energy. Its strategic mergers and acquisitions have further expanded its capabilities and market reach, allowing it to integrate complementary businesses and enhance its service offerings. This strong market position is reinforced by its commitment to operational excellence and a sustainable business model that resonates strongly within the Spanish market, thus solidifying its role as a leader in the transition to renewable energy.

Key Companies in the Spain Photovoltaic Market Include

• Solarpack


• Enel Green Power


• EDP Renewables


• Siemens Gamesa


• TotalEnergies


• Veolia


• Albufera Energy Storage


• Green Eagle Solutions


• Karma Energy


• Fotowatio Renewable Ventures


• Scatec


• Grenergy Renovables


• Iberdrola


• Acciona


• Endesa

Spain Photovoltaic Market Industry Developments

In recent months, the Spain Photovoltaic Market has seen significant growth and development, driven by governmental support for renewable energy and increased investments from key players. Companies like Solarpack, Enel Green Power, EDP Renewables, and Siemens Gamesa are aggressively expanding their share in this burgeoning sector. For instance, EDP Renewables announced plans in August 2023 to develop a new 200 MW solar project in southern Spain, reflecting the ongoing transition towards sustainable energy sources. Additionally, in May 2023, Grenergy Renovables secured funding for multiple solar facilities, enhancing its project pipeline.

In terms of mergers and acquisitions, Scatec acquired 100% of a 540 MW solar portfolio in Spain from Fotowatio Renewable Ventures in July 2023, a move indicative of the market's consolidation trend. Notably, Iberdrola also reaffirmed its commitment to renewable energy by planning significant investments in solar energy infrastructure, aligning with Spain's National Energy and Climate Plan targets. The overall market valuation of companies within this sector has seen a substantial increase, evidencing the strong demand and potential for solar energy in Spain as the country continues its push towards a greener future.

Spain Photovoltaic Market Segmentation Insights

Photovoltaic Market Type Outlook

• Organic PV


• Inorganic PV

 

Report Attribute/Metric Source:	Details
MARKET SIZE 2023	1.71(USD Billion)
MARKET SIZE 2024	1.81(USD Billion)
MARKET SIZE 2035	3.54(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR)	6.304% (2025 - 2035)
REPORT COVERAGE	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR	2024
MARKET FORECAST PERIOD	2025 - 2035
HISTORICAL DATA	2019 - 2024
MARKET FORECAST UNITS	USD Billion
KEY COMPANIES PROFILED	Solarpack, Enel Green Power, EDP Renewables, Siemens Gamesa, TotalEnergies, Veolia, Albufera Energy Storage, Green Eagle Solutions, Karma Energy, Fotowatio Renewable Ventures, Scatec, Grenergy Renovables, Iberdrola, Acciona, Endesa
SEGMENTS COVERED	Type
KEY MARKET OPPORTUNITIES	Rising demand for renewable energy, Government incentives and subsidies, Technological advancements in solar efficiency, Declining installation costs, Expansion of commercial and residential sectors
KEY MARKET DYNAMICS	Growing renewable energy investments, Supportive government policies, Declining solar technology costs, Increasing electricity demand, Rising environmental awareness
COUNTRIES COVERED	Spain