Solar panels in Orihuela (including Orihuela Costa): what foreign homeowners need to know

Council tax discounts in Orihuela

Spanish councils may reduce two taxes for solar self-consumption: the IBI (Impuesto sobre Bienes Inmuebles, the annual property tax, by up to 50% under national law) and the ICIO (Impuesto sobre Construcciones, Instalaciones y Obras, paid once on the works, by up to 95%). Both are optional for each council, which is why the figures differ from town to town. Our comparison of 21 cities (in Spanish) shows how widely they vary.

IBI: 50% of the IBI quota for homes with solar (older text; confirm)

• Article 4, section 5 of the IBI ordinance grants a 50% bonus on the IBI quota to owners of properties intended as dwellings with solar thermal or electric systems for self-consumption (citing article 74.5 of the national local-finance law).
• It is granted on request and takes effect in the tax period after the one in which you apply. The text we read does not state a number of years.
• Documents asked for: invoice and proof of payment, manufacturer’s warranty certificate, photographs of the panels and their installation, and a homologation certificate for solar thermal only.

ICIO: no solar bonus in the text we read

• The ICIO ordinance we read (version dated November 2018) only provides a bonus of up to 95% for works declared of “special municipal interest” by the full council, and does not mention solar installations. The rate is 4.00%.
• If the council has modified the ordinance since, the position may differ: ask when you apply for the licence.

How much a system produces in Orihuela

PVGIS, the free tool of the European Commission’s Joint Research Centre, gives 1,634 kWh per year for each kWp installed at Orihuela Costa (Playa Flamenca area, 37.927, -0.730), with panels facing south at the optimal tilt (35°), 14% system losses and 2091 kWh/m² of yearly irradiation on the panels. A 5 kWp system would therefore produce roughly 8,170 kWh a year. A roof that does not face south, or that is shaded, will produce less: your installer should model your actual roof.

Source: PVGIS v5.2 (JRC, European Commission), consulted 3 October 2026, coordinates 37.9265, -0.73, elevation 17 m. Use the calculator to turn this into euros with your own tariff.

Licence and paperwork in Orihuela

Orihuela publishes its ordinances on the council’s Governalia portal, and the tax is collected for the council by Suma (the provincial tax agency). The IBI bonus is a request to the council, not automatic.

The steps that are the same everywhere in Spain (registering the installation, the surplus-energy contract, what changes on your bill) are explained in our guide to solar panels in Spain for foreign homeowners.

Particularities for Orihuela

Orihuela had 85,674 registered residents in 2024, of whom 53,512 were Spanish, and the largest foreign communities were British (9,681), Moroccan (2,974) and Ukrainian (2,356), according to municipal register figures reported by Alicante Plaza; Orihuela Costa alone had 27,929 residents. Many foreign residents live on the coast, where many properties are houses and apartments inside residents’ communities: if you live in one, read the section on communities in the guide before asking for quotes.

Because the IBI text we could read is from 2018 and neighbouring Mazarrón rewrote its IBI ordinance for 2026, do not budget this bonus until the council confirms it in writing.

Orihuela Costa includes La Zenia, Playa Flamenca, Cabo Roig, Lomas de Cabo Roig and Villamartín, among others. They are inside the municipality of Orihuela, so Orihuela’s ordinances apply to them.

Frequently asked questions

Sources

• IBI ordinance (council Governalia portal, version 19-11-2018), article 4.5
• ICIO ordinance (council Governalia portal, version 19-11-2018)
• Suma, Orihuela: taxes and bonuses by municipality
• Alicante Plaza, 14-1-2025: Orihuela register data (2024)

All consulted on 2–3 October 2026. PVGIS: re.jrc.ec.europa.eu. Ordinances change, usually in the autumn for the following year: confirm the figure with the council before you sign.

Other towns