Spain to apply stealth tax to residents with solar power

Spain’s desperate bids to improve its economic situation hit a new low late last week with a government announcement that those with solar power units were to be taxed.

Householders who generate their own electrical power with solar panels are to be hit with a so-called solar power ‘support levy’ in spite of the fact that many installed solar panels at the height of the government’s environmental phase.The reason behind the new tax is simple – the Spanish government is hopelessly in debt to the major power companies.

At present, the amount stands at around €26 billion, and is increasing annually by around €5 billion as cash-strapped residents cut their electricity costs as far as they dare. It’s the government’s own fault, as the Spanish electricity companies are notorious for the highest rates in the EU, and are impossible to regulate.

The result is that both Spanish and expat residents with solar panels are to be government cash cows, with all those living within the national grid system to be remotely metered and taxed. Even residents in remote areas may not escape in the end, as they will be forced to connect their panels to the grid within 60 days of face huge, disproportionate fines of up to €30 million.

Many expat residents found that local utility firms refused to connect their new, rural homes to the grid, and were forced to go solar as a result, in spite of the high cost of installation. Environmental lobbyists and expats are fighting the introduction of the levy, saying that stealth taxes are one thing but, when it’s the Spanish sun they’re taxing, it’s a step too far.

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