Spain’s Self-Consumption Growth Slows as Battery Storage Gains Momentum

Spain’s solar self-consumption sector recorded 611 MW of new installations in the first half of 2025, marking the third consecutive year of decline. While industrial adoption has slowed significantly, the residential market is showing stronger growth, especially with the integration of battery storage solutions.

Industrial Decline Driven by Market Challenges

Overall installations fell by 14.6% compared to the same period in 2024. The industrial sector, which represents the majority of self-consumption capacity, saw a 22.9% decrease. Analysts point to volatile electricity prices and grid saturation as major obstacles, with nearly 20% of energy generated in 2024 curtailed before reaching the market. This has made renewable energy projects in the industrial space less profitable.

Residential Solar and Battery Storage on the Rise

In contrast, households are increasingly adopting solar paired with battery storage. Following a large-scale blackout in April, many consumers prioritized energy resilience and supply security.

Residential self-consumption grew by 11.6% year-on-year, while storage installations nearly doubled. In just six months, 146 MWh of capacity was deployed—almost equal to the entire volume added in 2024. The majority of these systems were retrofits paired with solar panels. Although the industrial sector added more capacity overall (88 MWh versus 58 MWh in residential), battery storage attachment rates were higher among households at 30%.

Storage Seen as Essential for Renewable Energy Growth

Battery storage is increasingly critical for overcoming grid congestion, reducing connection delays, and enhancing flexibility. For businesses, it also provides opportunities to electrify production processes, boost competitiveness, and even generate revenue by offering flexibility services to grid operators. These benefits underscore the role of storage as a key enabler of renewable energy adoption.

Infrastructure and Policy Gaps Remain

Despite growing interest, infrastructure and policy barriers remain significant. Recent grid capacity maps show that over 83% of demand nodes are already saturated, creating obstacles for new connections. Industry groups are calling for targeted policy measures such as tax incentives, reserved capacity for self-consumption, and clear regulations to support distributed battery storage.

Outlook for Spain’s Renewable Energy Transition

While the residential sector is increasingly turning to solar and battery storage, the broader decline in self-consumption installations raises concerns about meeting Spain’s 2030 renewable energy targets. Without stronger regulatory support and investment in grid infrastructure, progress may continue to lag.

Still, the rise in residential storage shows that consumers are willing to invest in technologies that enhance resilience and reduce costs, reinforcing the role of battery storage as a cornerstone of Spain’s renewable energy transition.