With the support of the European Next Generation EU fund, various calls can be developed to promote companies’ own energy consumption. Cost savings and community involvement are some of the benefits of betting.
The pursuit of large-scale transformation of the energy system is one of the fundamental pillars of the Recovery, Transformation and Resilience Plan (PRTR), the Spanish strategy to get help from the Next Generation EU European Fund.
One of the government’s goals is to accelerate the process towards a 100% sustainable energy system by the year 2050. To achieve this, several calls will be launched until 2026 to expand the use of renewable energy sources in both construction and manufacturing sectors, promote the deployment of seleven-consumption facilities.
These calls for European aid will be aimed at families, businesses and neighborhood communities so that they can generate their own renewable energy and thus reduce their energy bills.
“It is time for companies to prepare to invest in solar photovoltaics”, Urraca, Banco Sabadell
As noted by Carmen Urraca, European Funds Director at Banco de Sabadell, in the webinar organized through Banco Sabadell’s HUB Empresa, “it is time for companies to prepare to invest in solar photovoltaics as they will gain a competitive advantage thanks to the golden opportunity of the Next Generation EU European Fund, which provides subsidies for storage offers”.
In addition, Urraca emphasizes, the calls will be made by simple concurrence, that is, in order of presentation of applications, and they are especially useful for companies at the moment for two reasons: “Because of the increase in energy costs and because this support will promote the transformation to sustainability”.
Regulatory promotion of self-consumption of energy
In June 2021, Royal Decree 477/2021 was approved for the direct granting of support to the Autonomous Communities for the implementation of incentive programs linked to self-consumption and storage with renewable energy sources, within the framework of the PRTR.
The total planned support is 660 million euros, expandable to 1,320 million. Various incentive programs have been set up for the payment of this 660 million euros reserved for own consumption (of which 340 million directly to companies):
- Renewable own consumption for the service sector which has a provision of EUR 120 million (EUR 100 million for own consumption and EUR 20 million for storage).
- Renewable own consumption for other sectors which will have 175 million euros (150 million euros for own consumption and 25 million for storage).
- Inclusion of storage in renewable energy self-consumption installations that are already there, with an allocation of EUR 45 million.
- Promoting self-consumption of renewable energy in the residential sector in public administrations and in the third sector, which will add EUR 215 million (EUR 200 million for own consumption and EUR 15 million for storage).
- Storage in existing installations for self-consumption of renewable energy in the residential sector, in public services and in the third sector which will have 5 million euros.
- Thermal renewable installations in the residential sector with an aid amount of EUR 100 million.
In addition, there will be direct subsidy programs for the construction costs of a photovoltaic installation, varying from 15% for large companies to 45% for micro-enterprises. Medium-sized companies receive a 25% subsidy.
In the case of storage, the cost subsidies will be 45% for large companies, 55% for medium-sized companies and 65% for micro-enterprises.
Many autonomous communities have already published their calls for the distribution of these subsidies, which will be in effect until December 31, 2023. According to the Institute for Energy Diversification and Saving (IDAE), the distribution of these subsidies will create approximately 25,000 jobs linked to directly or indirectly to its own energy consumption.
Advantages of own electricity consumption for a company
In the same webinar On self-consumption of energy, Delia Rebollo, Product Manager Smart Solar Companies at Iberdrola, points out that investing in self-consumption of electricity allows a company “to reduce its energy costs and improve its competitiveness, helping Spain’s transition to a promote a low-carbon economy”.
In addition to these benefits, this expert points out others, such as the increase in corporate social responsibility (CSR) and the improvement of the entity’s reputation, the creation of a competitive advantage in its sector, the ability to protect itself against fluctuations in the price of energy or the rapid payback period of the costs of the photovoltaic installation, as it is calculated that the investment will pay for itself in about six years, given current energy prices.
In order to prepare companies as best as possible for these calls, the role of advice is essential. Banking entities such as Banco Sabadell provide a service of information, professional advice and support to businesses that gives them peace of mind and assurance to take full advantage of these resources.