The Solar Boom in Ibiza: How Renewable Energy Will Transform the Island in 2025
Ibiza seems to be going through an energy revolution. While it’s true the island still relies heavily on diesel and other fossil fuels, it’s impossible to ignore how private solar installations have flourished everywhere in recent years. Why? It’s not just due to the push from European aid; it’s also because society is slowly becoming more concerned about the planet’s future. However, it’s not all smooth sailing: the goal of becoming self-sufficient with renewables by 2025 presents some tremendous challenges—but also real opportunities for the economy and reputation of the island.
What is the current state of solar energy in Ibiza?
Although growth has been notable, the reality is that Ibiza’s adoption of solar energy starts from modest numbers. Renewable generation is still far from dominant: it barely covers 5% of the island’s electricity consumption, and nearly 75% of the electricity used still comes from fossil fuels. That places Ibiza below the Spanish average and far from the regional 2030 target (30% renewables).
Looking closely at the data, the real standout is self-consumption in private homes, while large-scale solar farms remain a minority. Most new installations have been carried out by families or small property owners. Ibiza represents only a small fraction of the Balearic total: over 5,000 installations add up to 46 MW in the archipelago, but Ibiza’s share is much smaller. This comes in a context where community and collective projects are progressing slowly, although they are institutionally on the agenda.
Compared to 2019, when self-consumption barely existed, the current situation clearly embraces solar energy like never before.
Policies and subsidies make a difference, but unique obstacles remain, such as high material transport costs, space limitations, and integration into an electricity grid that sometimes feels like an ill-fitting suit.
Evolution of Solar Self-Consumption in Ibiza (2019–2024)
| Metric | 2019 | 2024 | Growth |
|---|---|---|---|
| Installed capacity | 0.46 MW | 25.9 MW | x56 |
| Annual generation | 588.2 MWh | 33,163.9 MWh | x56 |
| Number of installations | ~670 (2020) | 2,705 | x4 |
| Demand coverage | Marginal | ~3.4% | Significant |
What subsidies and laws are driving solar self-consumption?
For some time now, Balearic policymakers have played the role of conductor in this energy symphony. Law 10/2019, which promotes climate change action and energy transition, along with the Energy Transition Investment Plan (PITEIB), are essentially the two tools pushing the solar landscape forward in Ibiza. They’ve created a playing field where both private and public investment are far more appealing.
The rules are clear: all urban planning projects, no matter how new, must consider renewable installations. Industrial buildings, homes, and even public infrastructure must join this solar wave. Let’s not forget institutions like the Balearic Energy Institute (IBE), which acts almost like a mentor—guiding and funding initiatives that once seemed impossible.
Available subsidies and tax benefits
The financial engine behind it all is largely the millions flowing from Europe through the NextGenerationEU funds. These subsidies and tax breaks significantly reduce the initial investment, especially for those looking to install panels on their own rooftops.
- Direct subsidies: Grants can reach up to €600 per kWp installed in homes—almost half the total cost of the installation.
- Property tax reductions (IBI): Some municipalities offer up to 40% off property tax for five years.
- Construction tax rebates (ICIO): This tax on construction work can be reduced by up to 95% in some cases.
- Income tax deduction (IRPF): Homeowners can deduct up to 20% of the investment on their income tax declaration—a valuable incentive.
Beyond solar panels, these policies also promote electric mobility and urgently needed upgrades to key infrastructure on the island, such as ports and desalination plants.
What major solar projects are being built on the island?
While individuals expand their solar rooftops, Ibiza is also starting to welcome large-scale projects: solar farms. These developments are crucial to increasing the proportion of renewables in the island’s energy mix. Right now, they seem to be the missing boost for the local energy system.
Which ones stand out?
- Can Mariano Lluqui Solar Park (Sant Joan): A giant with over 9,600 panels and almost 3 MW of capacity. It cost over a million euros, thanks in part to support from IDAE (Institute for Energy Diversification and Saving).
- Bosc d’en Lleó Solar Park (Sant Antoni): Another significant project, with over 11,000 panels and a capacity of more than 3 MW. Investment exceeds 2 million euros, with substantial public backing.
Altogether, ongoing or planned parks on the island add nearly 18 MW of additional capacity, which could boost the share of renewable energy by almost 2% within the island’s electricity system. This leap is key to approaching the medium-term 10% target.
Who funds these large parks?
IDAE plays the role of strategic investor. Through the SOLBAL 2 program, it injects up to 40 million euros specifically into photovoltaic projects in the Balearic Islands—including not only solar farms, but also self-consumption and storage initiatives.
How is the electric grid being prepared for this new energy?
Of course, producing more clean electricity isn’t enough if the grid isn’t ready. REE is working against the clock: in Sant Antoni, it’s installing the SATA battery system—the largest in southern Europe—with a capacity of 90 MW. It’s expected to be operational by 2026, enabling energy storage and stabilizing supply like a reservoir stores water for dry days.
How is Ibiza’s economy and tourism changing with solar energy?
The rise of solar energy is leaving its mark on the local economy and, surprisingly, on tourism too. The rapid increase in installations from 2020 to 2024 is a new driver of job creation—in installation, maintenance, management, and development. “Green jobs” are especially significant, offering a sense of hope for the future.
Next Generation funds have been crucial: more than 13 million euros allocated to self-consumption in the Balearics have breathed new life into local companies and encouraged professional specialization in clean technologies. Sant Josep, for example, has become a flagship example of this boom, showing that the energy transition is more than theory—it can redistribute economic opportunity in a tangible, visible way.
Tourism—the island’s real engine—hasn’t been left behind. For many hotels, solar panels are no longer just about saving money; they’re about image and differentiation. An Ibiza proud of its low carbon footprint is naturally more attractive to Northern European tourists and to travelers looking for destinations where “green” is more than just a slogan. In the long run, that reputation could be crucial against global competition.
What challenges does solar expansion face on the island?
Despite the excitement, solar energy in Ibiza faces challenges that often complicate progress.
Technical and grid challenges
Being an island creates unique problems: the local grid is fragile when it comes to large changes in production and integrating lots of renewables. Adding solar panels on a large scale requires major investments in new lines, compensation devices, and especially storage solutions. It’s like trying to channel a flood through an old canal system—you need to reinforce the entire infrastructure to truly harness solar power.
Environmental and administrative challenges
For large solar parks, bureaucracy can feel like an obstacle course. Ibiza’s strict environmental protection standards require detailed scrutiny before major developments are approved. Only areas with minimal impact get the green light, prioritizing already altered zones. This delays timelines and limits options.
Connection costs
A less visible but important issue is the high cost of grid connection: integrating a new project is usually much more expensive than on the mainland. Combined with rugged terrain and a dispersed population, this can deter even committed investors.
To make things harder, despite the rapid rise of renewables, dependence on fossil fuels is still overwhelming. In 2023, no less than 97% of the island’s energy came from diesel or gas, and only 2.8% from clean sources. Ibiza even imports two-thirds of its electricity from Mallorca, underscoring the scale of the challenge.
Looking ahead
To truly decarbonize the island, it’s time to step on the accelerator: in addition to multiplying solar parks and streamlining administration, Ibiza must invest in collective self-consumption, energy communities, and efficient storage. Together with more electric transport and renewed efficiency, these steps will determine whether Ibiza can truly consolidate a sustainable and resilient energy model.
