Types of incentives in Mallorca
Conditions change every year, so we always check the current call before quoting. The main routes are:
- The Balearic Government’s FACTOR 2026 programme (batteries, EV charging points, heat pumps and, for businesses and owners’ associations, solar panels): closed to new applications since 17 October 2026
- Energy Saving Certificates (CAE) when a combustion boiler is replaced with a heat pump
- Multi-year property tax (IBI) rebates in many municipalities
- Building tax (ICIO) rebates for solar installations
- Balearic 50% income-tax deduction (up to €5,000 a year) for solar panels and other renewables in a main home, subject to income limits (Spanish tax residents)
- Spanish state income-tax deduction for energy-efficiency works (20%, 40% or 60%)
- Tax incentives for businesses investing in renewables
FACTOR 2026: closed to new applications
FACTOR 2026 (BOIB no. 83, 2 July 2026) was due to accept applications until February 2027 or until the budget ran out. BOIB no. 132 of 17 October 2026 closed the application period that same day, because the requests received exceeded the available budget, including the possible extension. No new applications can be filed under any of its programmes.
If you already applied, your file goes ahead: the decision arrives within six months of the application, and the installation must then be justified. We help you with that justification. There is no date for a new call; we are keeping an eye on it.
For reference, these were the conditions of the 2026 call, now closed:
- Private individuals domiciled in the Balearic Islands: batteries 45% of eligible cost, charging point 70% (max €2,500) and air-to-water heat pumps €700 per kW (max €25,000). No grant for solar panels.
- Businesses: solar panels from 40% (large) to 50% (medium), 60% (small) or 70% (de minimis), up to 500 kWp; plus batteries, charging and heat pumps.
- Owners’ associations and non-profit entities: solar panels at 70%, plus batteries, charging and heat pumps.
- Batteries: maximum eligible cost of €910/kWh up to 10 kWh, €650/kWh from 10 to 100 kWh and €455/kWh from 100 to 200 kWh, depending on the total battery capacity.