Written by: Basant El-Farmawy
Photovoltaic solar energy has achieved massive economic savings for consumers in Spain, totaling more than 17 billion euros in just 18 months. According to a recent study by the Spanish Photovoltaic Union, this technology played a fundamental role in lowering electricity prices in the wholesale market, which positively reflected on households, businesses, and national industries alike.
The Role of Solar Energy in Lowering Electricity Prices
Data covering the period from January 2025 to June 2026 showed that reliance on solar energy contributed to significantly reducing the cost of electricity; had it not been for the presence of these renewable sources, the price of electricity in the wholesale market would have been 86% more expensive than it was. During the study period, the average daily price reached 60.2 euros per megawatt-hour, compared to 112 euros the price would have reached in the absence of solar energy, representing a 46% decrease in direct costs.
The results indicate clear economic viability; every euro invested by society in photovoltaic energy yields up to eight euros in electricity cost savings, making it a key pillar in the Spanish energy mix.
Contributions of Self-Generation and Industry
The positive impact was not limited to large-scale solar power plants; self-consumption in homes and businesses contributed 2.791 billion euros to the total savings achieved, while large plants contributed about 14.230 billion euros. Self-generation helps reduce demand on the public grid, contributing to price stability for all consumers, including shops and industries.
In this context, José Donoso, General Manager of the Spanish Photovoltaic Union, emphasized that solar energy has surpassed being merely a means to generate electricity to become a strategic bet that enhances energy security and competitiveness in Spain. He pointed out that relying on a national and free resource like the sun reduces dependence on the fluctuations of global fossil fuel markets, and supports re-industrialization efforts by providing competitive energy that allows companies to lower their operational costs and enhance their energy independence.
