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Solar Subsidies in Mallorca 2026-27: FACTOR, FOTOPAR and Tax Breaks

Updated 10 October 2026 · 5 min read

Solar support in Mallorca comes in layers: Balearic grants (FACTOR for batteries and EV chargers, FOTOPAR for panels), state and Balearic income-tax deductions, and municipal rebates on property and works taxes. Residents can stack most of them; owners who live abroad get the municipal rebates. As of October 2026, FACTOR is open until 28 February 2027, FOTOPAR is closed with a new call expected in early 2027, and a new 10% state deduction applies to systems finished in 2026. The subsidy checker tells you in a minute which apply to you.

FACTOR 2026-27: batteries, EV chargers and community panels

FACTOR is the Balearic government's programme funded by the islands' "insularity factor". The 2026-27 call (BOIB no. 83, 2 July 2026) opened on 9 July 2026 and closes on 28 February 2027, or earlier if its €4.1 million budget is used up. It's first-come, first-served and applications go through the CAIB electronic office.

For households domiciled in the Balearics it pays:

  • 45% of a home battery, measured against a reference cost of €910 per kWh for batteries up to 10 kWh. Lithium only, 5-year manufacturer warranty, new or added to an existing system.
  • 70% of a home EV charger, capped at €2,500, for chargers up to 15 kW.
  • Up to 70% of an aerothermal heat pump, capped at €25,000.

It does not pay households for solar panels. The panel programme is for companies, public bodies, communities of owners and non-profits, at 40 to 70% of a reference cost of €1,188 per kWp (up to 10 kWp) or €910 per kWp (10 to 100 kWp). Communities of owners sit in the 70% band, which makes shared systems on apartment buildings unusually well funded. See our page on community and apartment solar.

The grant can't exceed the eligible cost, and there's an overall cap of €300,000 per beneficiary. Most installers in our network file the application for you.

FOTOPAR: the household panel grant (closed)

FOTOPAR is the EU-funded (FEDER) grant for household solar. The 2026 call paid €600 per kWp for individual systems (capped at €3,000 for 5 kWp), €710 per kWp for shared ones, and €420 per kWh of lithium storage up to 30 kWh. It ran from 26 January to 30 April 2026 and is closed. Nothing is announced for 2027, but the 2025 and 2026 calls both opened in late January, so a January 2027 window is likely. You can't apply for a system already installed, so if you're a resident planning panels and can wait, have your quotes ready and apply on day one. Sign up for the alert on the subsidy checker.

State income tax: two routes, pick one

The new 10% self-consumption deduction. Royal Decree-Law 7/2026 created a deduction of 10% of what you pay for a renewable self-consumption installation (panels, batteries) in a property you own, completed and paid between 1 January and 31 December 2026, with a maximum base of €5,000 a year. For collective systems in residential buildings it's 20%. It needs the electrical certificate (CIE) and all permits, grants received come off the base, and the system can't be used for a business. No energy certificates are needed, which makes it the simple route for most homes.

The 40% efficiency deduction. The older deduction for works that cut a home's non-renewable primary energy use by at least 30% (or reach class A or B) was extended to works paid by 31 December 2026, with a maximum base of €7,500 a year. It needs an energy performance certificate before and after. For a large system it can be worth more than the 10% route, but you can't use both on the same installation.

Both require Spanish income-tax residency, payment by transfer or card, and apply in the return for the year the work is finished.

Balearic income tax: the 50% sustainability deduction

Balearic tax residents can deduct 50% of what they invest in renewable installations in their main home, on a base of up to €10,000 a year, so up to €5,000 off the regional part of their income tax. Solar PV for self-consumption is explicitly included. Conditions: total taxable income up to €33,000 (individual) or €52,800 (joint), the home must be the taxpayer's main residence, and its energy rating must improve by at least one level with certificates registered before and after. Confirmed for the 2025 tax year; continuation for 2026 should be confirmed in the Balearic budget law.

Municipal rebates: IBI and ICIO

Each town sets its own rebates in its yearly tax ordinance. We've confirmed three from the ordinances themselves:

  • Palma: 50% off IBI for six years (capped at 100% of the installation cost excl. IVA) and 95% off ICIO.
  • Calvià: 50% off IBI for three years, capped at half the installation cost.
  • Marratxí: 50% off IBI for three years, capped at €500 a year.

Others are reported by aggregators but not yet verified (Pollença 50% IBI and 75% ICIO, Inca 50% and 90%, Santanyí 95% ICIO, Andratx 95% ICIO), and some towns we haven't checked yet. Each town pages page says which. Rebates are tied to the property, so they usually apply to non-resident owners too. Apply at the town hall after the system is registered; most ask for the installer's certificate, the comunicació prèvia and proof of ICIO payment, and some only accept applications in a yearly window.

How the layers stack

A Balearic resident installing 6 kWp with a 10 kWh battery in Palma in late 2026, total €13,000:

  1. FACTOR on the battery: about €2,700 (45% of €6,000).
  2. State 10% deduction on the remaining base, capped at €5,000 of base: €500.
  3. Balearic 50% deduction if the home is their main residence and income is under the limit: up to €5,000 of base... in practice limited by their regional tax bill.
  4. Palma IBI: 50% off for six years, perhaps €2,000 to €3,000 over the period, plus 95% off ICIO on the works.

Grants reduce the base of the tax deductions. Keep every invoice and certificate.

Owners abroad

If you're not domiciled in the Balearics, FACTOR and FOTOPAR are out, and if you're not a Spanish income-tax resident, so are the IRPF deductions. What remains is the municipal IBI and ICIO rebate, which on a villa's IBI bill is still meaningful, and the fundamental economics: 1,600 kWh per kWp and 22-cent electricity. See Solar for Non-Resident Owners in Mallorca.

Practical rules

  • Pay by bank transfer or card. Cash disqualifies the deductions.
  • Don't install before applying where the programme requires it (FOTOPAR). FACTOR allows applications for installations made after the call's start.
  • Budgets run out before deadlines. Apply early.
  • Rules on this page were last checked in October 2026; we update them when the BOIB does.

Common questions

Can households get a grant for panels right now?

Not from FACTOR, which funds panels only for companies and communities. The household panel grant is FOTOPAR, closed since April 2026 with a new call expected in early 2027. Households do get the new 10% income-tax deduction.

How much is the FACTOR battery grant worth?

45% of the cost, measured against a reference of €910 per kWh for batteries up to 10 kWh. A 10 kWh battery costing €6,000 brings back about €2,700; one costing €9,100 or more brings back the capped €4,095.

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