Spain’s energy storage sector is evolving — not just in size, but in strategy. New data from the Spanish Photovoltaic Union (UNEF) paints a nuanced picture of a market in transition. While total battery capacity installed alongside rooftop solar fell by 34% in 2024 to 327 MWh, a different trend is quietly reshaping the country’s energy landscape: 26% of newly connected rooftop PV systems now come with battery storage.
This figure — representing 110 MWh of capacity — may not seem dramatic at first glance. But in a broader context, it underscores a significant pivot in how Spanish households and businesses are approaching energy independence. Rather than chasing rapid installation growth, the focus is shifting toward smarter, value-driven adoption — particularly in the commercial and industrial (C&I) segments, where battery energy storage systems (BESS) are increasingly seen as tools for cost optimization and grid resilience.
Commercial and Industrial Demand Steers the Market
Much of the ongoing demand is now coming from the C&I energy storage segment, where energy-intensive users are investing in batteries to hedge against price volatility and maximize the value of self-generated power. With Spain’s volatile electricity market and increasing pressure on companies to decarbonize, battery storage is no longer a future-facing technology—it’s a present-day operational advantage.
“Companies are becoming more sophisticated in their energy strategies,” said José Donoso, Director General of UNEF. “We are seeing strong momentum in commercial, industrial, and even off-grid systems where batteries can reduce peak demand charges and offer better control over energy use.”
This shift is reflected in cumulative figures: since 2022, Spain has installed more than 2,200 MWh of rooftop-connected battery storage — a substantial base that is expected to grow as regulatory frameworks improve and technologies mature.
Policy Reform: Progress with Caveats
Regulation is starting to catch up. Spain’s recent Royal Decree-Law 7/2025 introduced a suite of measures designed to modernize the self-consumption landscape. Chief among them: the introduction of a collective self-consumption manager and an expanded energy-sharing radius of up to 5 km — a critical development for community-based and multi-building installations.
Yet much work remains. UNEF has submitted proposals aimed at unlocking more growth, particularly for smaller systems. These include:
- Revising electricity tariffs to place greater emphasis on variable costs, incentivizing efficient energy use;
- Easing licensing rules for systems up to 15 kW;
- Streamlining approval processes for projects up to 500 kW, which would be especially impactful for C&I customers scaling rooftop PV systems.
Spain’s Ministry for the Ecological Transition (MITECO) is currently reviewing over 650 public submissions on proposed reforms to Royal Decree 244/2019, signaling that further policy evolution is on the horizon.
Rooftop Solar Without Storage Faces Headwinds
On the other hand, traditional self-consumption PV systems without batteries are experiencing a clear deceleration. UNEF reported a 17% drop in installations in Q1 2025 compared to the same period in 2024, continuing a downward trajectory that saw a 31% decline last year.
Broken down by segment:
- Residential installations fell 14%;
- Commercial systems dropped 17%;
- Industrial PV installations declined 20%.
These figures suggest that while enthusiasm for solar remains, the lack of integrated storage may be limiting the attractiveness and economic viability of standalone rooftop systems.
A Smarter Growth Story
The overall trend in Spain points to a market that’s maturing rather than retreating. As more stakeholders — from households to large industrial players — recognize the long-term benefits of C&I ESS and distributed battery energy storage, growth is becoming more strategic, more efficient, and more aligned with national energy goals.
While total MWh figures may fluctuate year-to-year, the steady increase in battery-paired installations shows a rising preference for energy autonomy and flexibility. With the right policy adjustments and continued investment in the storage value chain, Spain is well-positioned to lead Southern Europe in the next phase of decentralized energy transformation.
