Living on the Costa del Sol

Andalucía Home Energy Grants: What Benahavís and Costa del Sol Owners Need to Know

Planning better insulation, more efficient heating or solar panels? A new regional grant could help with the cost — but the minimum funding requirements mean not every project will qualify.

A home on the Costa del Sol may enjoy plenty of sunshine, but that does not necessarily mean it is inexpensive to heat or cool. Older windows, poorly insulated roofs and inefficient air-conditioning systems can make a noticeable difference to comfort and electricity bills, particularly during the hottest weeks of summer and cooler winter evenings.

For owners considering more substantial improvements, Andalucía has opened a new round of grants for energy efficiency and renewable energy. The programme is available across the region, including Benahavís, Marbella, Estepona and the wider Costa del Sol.

The headline figure is attractive: qualifying private homeowners may receive a grant starting at 50% of eligible costs for energy-efficiency work, rising to as much as 65% in certain circumstances. A separate solar scheme starts at 55% for qualifying private applicants. However, there are important rules about project size, technical requirements and how the eligible cost is calculated.

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What are the new Andalucía home energy grants?

The scheme is managed by the Andalusian Energy Agency and forms part of the regional INEA programme. It has a total budget of approximately €20.77 million, co-financed by the European Regional Development Fund.

That figure covers more than private homes. Funding is also allocated to eligible projects involving certain public buildings, with different budget categories and rules for different types of applicant.

Homeowners, owners’ communities and certain businesses are among those who may apply, depending on the project. Applications are considered under a non-competitive process, subject to the rules of the call and the availability of the relevant funding.

Which home improvements could qualify?

The energy-efficiency line covers a range of measures intended to improve the performance of a home or residential building. Depending on the technical requirements of the project, these can include better insulation for façades, roofs and ceilings, replacement windows, and shading measures such as awnings or shutters.

It can also cover improvements to heating, cooling, hot water and lighting systems. In a Costa del Sol home, that might mean looking at how the property keeps heat out in summer as well as how it retains warmth during winter.

Renewable technologies, including solar, aerothermal systems and biomass, can also form part of an eligible efficiency project if they contribute to the required improvement. Under this route, the renewable element must not exceed 50% of the total investment in the project submitted.

The Junta also has a separate line for new solar technology in homes and private residential buildings. The two routes have different conditions and minimum grant amounts, so an installer or qualified adviser should establish which is appropriate before an application is prepared.

Does the property need a better energy rating?

For the energy-efficiency line, the work must improve the building’s energy rating by at least one letter and reduce non-renewable primary energy consumption and carbon dioxide emissions. Additional requirements apply in some circumstances, including for businesses.

This makes the technical assessment particularly important. Before committing to a project, ask a qualified energy professional to assess the current rating, the proposed improvements and the evidence needed to demonstrate that the completed work meets the scheme’s requirements.

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How much could a homeowner receive?

For a qualifying private individual who is not carrying out an economic activity, the general starting rate for residential energy-efficiency improvements is 50% of the eligible cost. That rate can rise to a maximum of 65% if the project meets the conditions for additional support, such as certain qualifying renewable-energy measures.

For the separate residential solar line, the starting rate for private individuals is generally 55%, with potential increases in specific circumstances, such as qualifying collective self-consumption or energy-community projects. The 55% is a separate rate for that line; it is not an extra amount automatically added to an efficiency grant.

Different starting rates and conditions apply to businesses. If a property is used for an economic activity, including rental activity, ask an adviser to establish how the applicant and project are classified before relying on the private-homeowner figures.

The grant is calculated against the scheme’s eligible cost, using its prescribed unit-cost rules. This is not necessarily the same as the contractor’s full quotation or final bill, and approval is not automatic.

The minimum grant amounts are important

The minimum grant requested is €10,000 for the residential energy-efficiency line and €6,000 for the residential solar line. A project must therefore be large enough, under the scheme’s own eligible-cost calculation and applicable grant rate, to reach the relevant minimum.

As a simple illustration, an efficiency project assessed at exactly €20,000 in eligible costs would produce a €10,000 grant at a 50% rate. Likewise, a solar project would need approximately €10,910 in eligible costs to produce a €6,000 grant at 55%.

These are illustrations, not minimum contractor quotes or promises of funding. The actual eligible amount may differ from the price paid, and other conditions must also be met. A smaller standalone installation may therefore fall below the threshold even if the technology itself is eligible.

What about solar panels and batteries?

The separate solar line includes qualifying new solar technology for homes and private residential buildings. For photovoltaic self-consumption installations, the Junta requires electrical storage and sets technical conditions for its capacity.

There is another point worth discussing with an installer: installations that are not used for an economic activity must not receive payment for surplus electricity under this line. Ask how the proposed system and electricity contract would satisfy the scheme’s rules before making a decision.

Solar thermal systems and photovoltaic systems are different technologies, so owners should not assume that every condition applies in exactly the same way to every installation. The correct route and technical specification should be checked for the individual project.

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Can apartment communities apply?

Yes. Communities of owners are among the groups that can apply, subject to the programme’s conditions. This may be relevant to apartment buildings and urbanisations considering improvements to shared facilities or a larger building-wide project.

For an apartment owner, the practical starting point may be the community administrator or president. They can establish whether a proposal concerns the individual property or common elements, what community approval is needed, and whether a collective project is suitable for the scheme.

Are second homes and non-resident owners eligible?

Many properties around Benahavís and the Costa del Sol are owned by people who live abroad or use their home for part of the year. The Junta identifies private individuals and owners’ communities among the possible applicants, but that does not by itself confirm eligibility for every second-home or non-resident situation.

Before paying for an application, ask the Andalusian Energy Agency or a qualified adviser to check your ownership, tax and residence circumstances, how the property is used, and whether you can provide the identification and electronic documentation required. If the property is rented, clarify how that affects the application and grant rate.

Can you claim for work that has already started?

Private individuals who do not carry out an economic activity may be able to apply for an eligible project that has already started, provided it began no earlier than 1 May 2025 and had not been completed before the application was submitted.

The position is different for other applicants, including businesses: the Junta says they must not have incurred expenditure or made commitments before submitting their application. If you have already signed a contract, paid a deposit or started work, have the dates and documents checked against the rules that apply to you.

Are there additional incentives in Benahavís?

It is worth asking Benahavís Town Hall whether a qualifying solar installation can also benefit from a local tax reduction, particularly on IBI, the annual property tax, or ICIO, the tax associated with certain building works and installations.

Municipal incentives are governed by local ordinances and can have their own application deadlines, technical conditions and documentation requirements. We have not confirmed the current Benahavís rates and conditions against the town hall’s applicable ordinance, so owners should request written confirmation before including a local saving in their calculations.

If your property is in a neighbouring municipality, check with the relevant town hall: a Marbella or Estepona address, for example, does not necessarily mean that the same local rules apply. Also ask your adviser whether any local benefit can be combined with the regional grant for your particular project.

How and when do you apply?

Applications are submitted electronically through the Andalusian Energy Agency’s incentives portal. The published application period began on 22 October 2026 and is due to run until 30 September 2027, although it may close earlier if the relevant funds are exhausted.

Before applying, establish which funding line fits the project, obtain an appropriate technical assessment and itemised quotation, and check the documents and electronic identification required. An authorised representative can help with the submission where appropriate.

Owners should also ask about the timing of payment. The scheme provides for payment after the required justification of the work. For grants above €15,000, an advance or partial payment may be available under specified conditions; an advance is paid only after the grant has been awarded.

Visit the Andalusian Energy Agency application portal →

For owners already planning a substantial renovation, the programme could make an energy upgrade more manageable. The first step is to establish whether the project qualifies on paper: the percentages are appealing, but the minimum grant and technical requirements will determine whether they are relevant to your home.