Murcia local government takes Spain’s solar shutdown laws to constitutional court

Facebook
Twitter
LinkedIn
Reddit
Email

The local government of the region of Murcia is taking the Spanish government to the country's constitutional court over its attempts to cull support for solar energy in the country.

In July a raft of new measures to cut Spain’s energy budget deficit of €26 billion (US$34 billion) were announced.

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

These included a retroactive cap of 5-5.5% after tax on the profit margins of PV projects. For many this will be less than the cost of borrowing.

The rules also “criminalised” self-consumption by forcing people who had installed panels for their own use to buy their own electricity at a tariff above the market rate. Using it directly could see fines of up to €30 million (US$40 million).

Murcia, on Spain’s east coast, has been hit particularly hard.

“The government of Murcia took this decision in order to defend the interests of the thousands of investors will be affected by this new regulation and consider moving on may have serious economic consequences for the region,” a spokesperson for the Murcia government said.

The case is built around two main points according to Murcia's government; firstly that the retroactive nature of the changes are a breach of the constitution and secondly that they discriminate against renewables versus other forms of energy generation.

It is also possible that the changes have breached the international 1994 Energy Charter Treaty by failing to “encourage and create stable, equitable, favourable and transparent conditions for Investors of other Contracting Parties to make Investments in its Area”.

Read Next

Premium
July 2, 2026
As the 4 July safe harbour deadline nears, VDE Americas’ Lisa Casey says US solar is at a decisive but nuanced turning point.
July 2, 2026
The LCOE for solar PV increased marginally in 2025, reaching US$44/MWh, up from US$43/MWh in the previous year.
July 2, 2026
State-owned coal producer Coal India Limited (CIL) has secured a contract worth INR28.3 billion (US$296 million) to develop a 600MW PV project at the Jalaun Solar Park in the northern state of Uttar Pradesh, India.
July 2, 2026
India's MNRE has urged the power regulator to retain separate 'Deviation Settlement Mechanism' rules for solar and wind projects to protect them against increased financial risks.
July 2, 2026
The Massachusetts Senate’s new energy efficiency legislation has been broadly welcomed by US solar industry and clean energy representatives.

Upcoming Events

Solar Media Events
October 13, 2026
San Francisco Bay Area, USA
Solar Media Events
November 3, 2026
Málaga, Spain
Solar Media Events
November 24, 2026
Warsaw, Poland
Solar Media Events
April 20, 2027
Istanbul, Türkiye