Solar PV reduced Spain’s wholesale electricity costs by an estimated €17.02 billion between January 2025 and June 2026, according to Spanish PV association UNEF.
The association estimates that average day-ahead electricity prices would have been 86% higher without solar generation.
The study compares actual day-ahead market prices with a modeled scenario excluding generation from utility-scale PV plants and self-consumption systems. Without solar, the average price would have reached €112/MWh, compared with the recorded €60.2/MWh, representing a 46% reduction.
Utility-scale PV accounted for €14.23 billion of the estimated savings, while residential and commercial self-consumption contributed €2.79 billion. The total comprised €10.86 billion in 2025 and €6.16 billion in the first half of 2026.
UNEF attributes the effect to the marginal pricing mechanism of the day-ahead market. Solar generation, with its low variable costs, displaces more expensive electricity sources, lowering the market-clearing price. Self-consumption contributes by reducing demand from the grid, benefiting consumers beyond those with rooftop installations.
The association also estimates that every euro invested in solar PV generates €8 in wholesale electricity price savings.
The price effect was particularly pronounced in June 2026, when the average day-ahead market price stood at €69.6/MWh. UNEF estimates that it would have reached €162.7/MWh without solar generation, a difference of €93.1/MWh.
The analysis uses data from Iberian electricity market operator OMIE, Spanish grid operator Red Eléctrica and UNEF to model market clearing without utility-scale PV and self-consumption. It also considers how other generation technologies would respond to changes in electricity prices.
However, the findings do not translate directly into equivalent savings on consumers’ electricity bills. The analysis covers the day-ahead wholesale market but excludes other cost components, including technical constraints, balancing services and forward contracts.
UNEF also acknowledges that the response of other technologies, particularly combined-cycle gas plants and hydropower facilities, could differ under substantially altered market conditions.
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