Why is solar energy so expensive in Portugal?

Portugal faces some of the highest electricity prices in Europe, driven by taxes and network costs. With rising electricity costs making it more expensive to power appliances, heat water, and cool homes, solar energy offers a cost-effective solution.

How do solar panels work in Portugal?

Any excess solar energy that is not used immediately can be fed back into the grid through Portugal's self-consumption scheme. Homeowners receive compensation for the surplus energy they supply. This means even if you’re not at home during the day, your solar panels can still generate value by selling energy back to the grid.

Why should you invest in solar energy in Portugal?

Portugal’s solar energy sector is a beacon for renewable energy development, offering abundant opportunities for professionals and investors. The combination of high solar potential, supportive policies, and technological advancements positions the country as a leader in the global solar market.

What is the VAT rate for solar panels in Portugal?

Until 30 June 2025, installations benefit from a reduced VAT rate of 6% on mainland Portugal (5% in Madeira, 4% in the Azores). After that, the rate is expected to return to the standard 23%. Thinking about installing solar panels in your Portuguese home?

Why do solar panels shut off in Portugal?

The majority of solar panel systems in Portugal automatically shut off in the event of a power outage for safety. This happens so electricity is not fed back into the grid, potentially harming technicians working on the lines. However, there are solutions such as SmartGuard by Huawei, to keep your system running during the power outage.

How much solar energy does Portugal produce a year?

At the time, it was the largest to date, with its 2,520 solar trackers featuring 262,080 photovoltaic modules capable of 45.78 MWp and an average annual production of 93 GWh. Of course, Portugal’s capacity for solar energy production does not end with the above projects.