Iberdrola España increases subsidies for aerothermal energy by up to €5,000

Parliament extends energy efficiency tax credits, reinstating the flat-rate credits that were not applied in 2025
The company's plan, combining direct discounts and tax deductions, could result in savings of over 75%
Its aim is to promote the electrification of air conditioning and improve its efficiency whilst supporting the energy transition

Aerothermal

Aerothermal energy in a detached house

Iberdrola España is launching a grant scheme offering up to €5,000 per property to boost incentives for measures related to aerothermal energy approved in the recent Royal Decree 07/2026, enabling a discount of over 75% on installation costs. Electrification is a key solution to energy crises by reducing dependence on fossil fuels, improving security of supply and promoting national energy independence. According to the IDAE over 40% of Spain's energy consumption comes from heating, so replacing fossil fuels with electricity in this sector is key to driving the energy transition.

Thus both single-family homes and residents' associations will benefit from a 60% reduction on investment costs up to €9,000 and for flats a 40% reduction up to €3,000. In addition to tax deductions, the Royal Decree includes further support measures for aerothermal energy, such as reductions in property tax (IBI) and construction tax (ICIO), alongside the reduction in electricity tax from 5.11% to 0.5% and in VAT on electricity from 21% to 10%.

Spain stands out for having a high level of renewable energy generation in Europe. Spanish households can benefit from this by investing in aerothermal energy, a sustainable and highly efficient heating and cooling system that achieves energy savings of up to 70% on heating costs when used with underfloor heating and up to 40% with radiators, whilst also providing protection against fluctuations in fossil fuel prices.

Iberdrola España's additional support scheme includes a direct discount of €400, a €1,000 credit through the Mi Iberdrola programme, which can be applied to the electricity bill and a direct discount of up to €3,600 in the form of Energy Saving Certificates (ESC), depending on the climate zone in which the property is located. The CAE system converts the energy savings achieved following an energy efficiency improvement measure — in this case, by replacing a combustion boiler with an air-source heat pump — into cash, which Iberdrola España offers as a direct discount on the air-source heat pump contract.

Thus for a detached house between 100 and 200 square metres the discount would be around 80%, taking into account tax deductions and the Iberdrola España plan, whilst the average saving for a flat of around 100 square metres would be 65%.

Iberdrola España increases subsidies for aerothermal energy by up to €5,000

Iberdrola España increases subsidies for aerothermal energy by up to €5,000

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