When you install solar panels in Spain under the current self-consumption framework (Real Decreto 244/2019, published 5 April 2019), the key question is not whether you can feed surplus electricity into the grid — you can — but whether you get paid for it or simply receive a discount on your electricity bill. The answer depends on which of the two main modalities you choose: individual self-consumption or collective self-consumption, and within those, whether you opt for the simplified compensation mechanism. This guide explains the rules, the one form that matters, and what to check with your supplier and regional authorities.
Real Decreto 244/2019 abolished the controversial ‘impuesto al sol’ (sun tax) that previously penalised self-consumption. It established a clear legal framework for generating your own electricity and sharing it with neighbours (collective self-consumption). The decree also created a mechanism called compensación simplificada (simplified compensation) for small installations.
Individual self-consumption means your installation is associated with a single consumer (your home). Collective self-consumption allows several consumers to share the same generation installation, for example, neighbours in a building or a small community. Both can be connected to the grid, and both can benefit from simplified compensation if they meet the conditions.
Under simplified compensation, an individual or collective self-consumer whose installation is up to 100 kW, connected to the grid, and without a surplus sales contract can feed surplus energy to the grid. In return, the consumer receives a discount on the electricity bill, not a direct payment. The value of that discount is set by the supplier, but it cannot exceed the market price of electricity. Importantly, the bill cannot be made negative — you cannot receive money from your supplier at the end of the month; the compensation only offsets your consumption.
This is a crucial distinction: you are not ‘selling’ your surplus at a fixed tariff; you are offsetting the energy you consume from the grid. The exact discount per kWh varies by supplier and by the market price, so it is essential to check your contract.
To benefit from simplified compensation, your installation must be properly registered and communicated. This involves two steps:
Without this registration and communication, you cannot access simplified compensation. The form you submit to your autonomous community is the one that matters most — it triggers the whole process. Check with your regional energy office for the specific form and requirements, as they can vary.
| Feature | Individual self-consumption | Collective self-consumption | Simplified compensation (applies to both) |
|---|---|---|---|
| Definition | One consumer, one installation | Multiple consumers share one installation | Mechanism to offset surplus energy on the bill |
| Installation size limit | No specific limit in the decree (but compensation limited to ≤100 kW) | No specific limit, but compensation limited to ≤100 kW | Up to 100 kW |
| Surplus sales contract | Not required for simplified compensation | Not required for simplified compensation | Must NOT have a surplus sales contract |
| Payment for surplus | Bill discount (if simplified compensation) or sale under contract | Bill discount (if simplified compensation) or sale under contract | Bill discount, never negative bill |
| Registration required | Yes, with autonomous community and distributor | Yes, with autonomous community and distributor | Yes, same as the modality |
The simplified compensation mechanism is a framework, but the actual discount you receive depends on your electricity supplier. Each supplier offers different compensation rates, and they may change over time. Always ask your supplier:
Also, check with your autonomous community for any additional requirements or incentives. Some regions have their own registration procedures and may offer subsidies, but this guide does not cover those because they vary and change.
Real Decreto 244/2019 does not set a fixed feed-in tariff. It does not guarantee a minimum payment for surplus energy. It does not allow your bill to go negative. It does not exempt you from paying grid charges for the energy you consume from the grid. All these aspects depend on market conditions and your supplier’s commercial terms.
Regulations and market conditions evolve. As of 2026, the framework established by RD 244/2019 remains in force, but it is always wise to consult official sources for updates. The Spanish energy agency IDAE and the regulator CNMC provide guidance and can answer specific questions.
