Heat Pump Subsidies Spain 2026: Don't Count on the Money
An Honest Assessment of Grants, Delays, Depleted Funds & Why Energy Savings — Not Subsidies — Should Drive Your Decision
Spain offers several subsidy programmes for heat pump installations — MOVES III grants, IRPF tax deductions, IBI property tax rebates, and ICIO construction tax reductions. On paper, these can total thousands of euros. In practice, however, many homeowners have experienced depleted funds, 2-3 year payment delays, mass rejections without explanation, and rules that change without notice. This guide explains every programme honestly — including the serious problems — so you can make an informed decision. Our strong recommendation: invest in a heat pump for the energy savings (60-80% reduction in bills), not because you expect a government cheque.
Important disclaimer — Information changes daily
Subsidy amounts, eligibility criteria, deadlines, and programme availability can change without notice. Information on this page is provided as a general guide only and may not reflect the current status of grant programmes.
Agua Therm is an installation company only. We do not handle subsidy applications, IRPF tax deductions, IBI/ICIO municipal applications, or any grant paperwork. We strongly recommend speaking with an independent subsidy specialist before committing to any installation, so you are fully informed of the options available at that time.
Our Position: Buy for Energy Savings, Not for Subsidies
What we recommend
- Invest in a heat pump for the 60-80% energy savings — this is real and guaranteed.
- Budget for the FULL installation cost without counting on any subsidy.
- If a subsidy arrives later, treat it as an unexpected bonus.
What we do NOT recommend
- Making a purchase decision based on the expectation of receiving a subsidy.
- Including subsidy amounts in your budget or payback calculations.
- Delaying a needed installation waiting for new subsidies to be announced.
💡 A €7,000 heat pump with €2,000/year savings pays for itself in 3.5 years WITHOUT any subsidy. With a subsidy, it pays off faster — but the financial case is already strong without one.
Important: Current IDAE Subsidy Issues (March 2026)
Read before applying - significant delays and funding problems reported
2-3 Year Payment Delays
Many homeowners report waiting 2-3 years for grant payments. Thousands of applications have been refused without clear explanations.
MITECO ReportsCritical IRPF Deadline: January 1, 2026
To claim IRPF tax deductions (40-60%, up to €7,500), your installation must be completed with energy certificate issued BEFORE January 1, 2026. Deductions available through December 31, 2026.
Agencia TributariaRegional Funds Exhausted
Andalusia's €24M IDAE budget depleted November 2025. Most regional subsidy programs closed application windows throughout 2024. Check current availability before applying.
IDAE OfficialPolicy Uncertainty Post-Blackout
Following Spain's April 2025 blackout, Royal Decree-Law 7/2025 was passed then repealed by Congress on July 22, 2025. High regulatory uncertainty continues with no political consensus on energy policy.
BOE - Official GazetteOur Recommendation
Despite subsidy challenges, heat pumps remain excellent investments due to 60-80% energy savings. We recommend:
- ✓Invest in a heat pump for the energy savings — don't rely on subsidies
- ✓Budget for the full cost without counting on any grant
- ✓If you choose to apply for subsidies, use a specialist company (see list below)
MOVES III Funds Exhausted
Andalusia's €24M budget was depleted November 2025. Most autonomous communities closed application windows during 2024. There is no guarantee of when funds will be replenished.
Massive Payment Delays
Homeowners across Spain report waiting 2-3 years for approved payments. Thousands of applications rejected without clear explanations. Many approved applicants are still waiting for funds allocated years ago.
Energy Policy Chaos
After Spain's April 2025 blackout, Royal Decree-Law 7/2025 was passed then repealed by Congress in July 2025. No political consensus on energy policy. Rules can change from one day to the next.
Confusing IRPF Deadlines
IRPF 40-60% deductions required installations completed before January 1, 2026. Deductions claimable on tax returns through December 31, 2026. Many homeowners were unaware of these deadlines.
Current Reality: Heat Pump Subsidies Spain 2026
- MOVES III funds (€500-€3,000): DEPLETED in most regions including Andalusia
- IRPF deductions (20-60%): installation deadline January 1, 2026 — already passed
- IBI rebates (30-50%): vary by municipality, can change without notice
- ICIO reductions (30-95%): modest savings, availability varies by municipality
- Energy savings 60-80%: GUARANTEED and independent of any subsidy
- Agua Therm provides installation documentation — does NOT process subsidies
MOVES III National Subsidy Program
The MOVES III programme provided direct subsidies for heat pump installations. Published amounts are shown below — note that funds are depleted in most regions and there is no guarantee of when they will be replenished.
Warning: Availability and Amounts Not Guaranteed
Andalusia exhausted its €24M in November 2025. Published amounts below are indicative based on previous funding rounds. Actual amounts, requirements, and deadlines are subject to change without notice. Always verify directly with IDAE or the Andalucía Energy Agency.

| Heat Pump System Type | Published Amount | Min. Efficiency (COP) | Typical Applications |
|---|---|---|---|
Air-Source Heat Pump (Small) Up to 12 kW heating capacity | €500-€800 | COP ≥ 2.5 | Apartments, small homes (80-120m²) |
Air-Source Heat Pump (Medium) 12-20 kW heating capacity | €1,000-€1,500 | COP ≥ 2.5 | Medium homes (120-200m²) |
Air-Source Heat Pump (Large) 20+ kW heating capacity | €1,800-€2,500 | COP ≥ 2.5 | Large homes (200m²+), villas |
Geothermal Heat Pump Ground-source system, all sizes | €2,000-€3,000 | COP ≥ 4.0 | All property sizes, maximum efficiency |
Heat Pump Water Heater 200-500L tank capacity | €500-€800 | COP ≥ 2.5 | Domestic hot water only |
Solar + Heat Pump Hybrid Combined solar PV + heat pump | Up to €6,500 | COP ≥ 2.5 | Published hybrid bonus |
Published MOVES III Requirements
Based on previous rounds — requirements may change in future rounds
Who May Qualify
- Spanish residents (DNI or NIE required)
- Legal entities (businesses, communities)
- Primary or secondary residences
- Commercial properties and businesses
System Requirements
- New heat pump installation
- Minimum COP 2.5 (air-source) or 4.0 (geothermal)
- Professional installation by certified installer
- Energy efficiency certificate required
Additional Tax Incentives — Variable Availability
Beyond MOVES III, tax incentives exist at national and municipal levels. Each has its own conditions, deadlines, and limitations. Explained factually below — with relevant caveats.
IRPF Tax Deductions
IBI Property Tax Rebates
ICIO Tax Reductions
Additional Andalucía Energy Efficiency Programs
Junta de Andalucía Energy Grants
The regional government occasionally offers complementary energy efficiency grants. These programmes typically provide €300-€1,000 additional support, but availability varies and is not guaranteed.
Check with the specialist subsidy companies listed on this page for current programme availability — they monitor regional opportunities.
Utility Company Rebates
Some electricity providers (Endesa, Iberdrola, Naturgy) offer rebates or financing programs for energy-efficient heat pump installations. These vary by provider and may include:
- €200-€500 rebates for qualifying systems
- 0% financing for 12-24 months
- Reduced electricity rates for heat pump users
Important disclaimer — Information changes daily
Subsidy amounts, eligibility criteria, deadlines, and programme availability can change without notice. Information on this page is provided as a general guide only and may not reflect the current status of grant programmes.
Agua Therm is an installation company only. We do not handle subsidy applications, IRPF tax deductions, IBI/ICIO municipal applications, or any grant paperwork. We strongly recommend speaking with an independent subsidy specialist before committing to any installation, so you are fully informed of the options available at that time.
Specialist Subsidy Processing Companies
If you choose to apply for subsidies despite the uncertainties, these specialist companies can help with the application process. Agua Therm has no commercial relationship with any of them.
Important Notice: Agua Therm does not process subsidies
Agua Therm is an HVAC and renewable energy installation company. We do not provide subsidy advice, application processing, or grant management services, and we accept no liability for the availability, eligibility, deadlines, or outcomes of any subsidy application.
- The companies listed below are fully independent third parties with no connection to Agua Therm.
- Agua Therm has no commercial relationship with them and receives no referral fees, commissions, or payments.
- Subsidy rules, deadlines, and amounts change frequently. Always verify directly with your chosen specialist or the relevant government authority.
- Responsibility for applying for subsidies lies solely with the client and/or the specialist agency they choose to engage.
SOLENE
Sevilla
Technical, administrative and documentary processing of IDAE applications. Specialists in solar self-consumption, energy efficiency and building renovation.
Euro-Funding
National
Leading consultancy for IDAE, CDTI and European fund subsidies. Complete management from application to justification and payment.
Ayudara
National
Boutique agency specializing in difficult cases and rejected applications. Personalized consultancy with prior viability analysis.
SUR 37
Sevilla (Andalucía)
IDAE-registered Energy Services Provider. Energy agency specializing in appeals and recovery of rejected applications.
Inergya
National
Energy engineering firm with a specialized department for processing Next Generation EU, MOVES III and IDAE fund applications.
Solfy
National (Andalucía included)
National platform specialising in aerothermal and solar subsidy processing. They handle the full process from first application through justification to final grant payment.
Andalucía Energy Agency
Official - Junta de Andalucía
Official portal with complete list of authorized companies for processing subsidies in Andalucía. Check fund availability and current requirements.
agenciaandaluzadelaenergia.esLiability Disclaimer — Information for Users
Agua Therm provides this list of companies for informational reference only. We do not guarantee, endorse, or validate the services, fees, availability, or outcomes offered by any of these companies.
Subsidy programmes are administered solely by public bodies (Junta de Andalucía, IDAE, local councils) and are subject to change without notice regarding amounts, eligibility requirements, deadlines, and available funds. The official, definitive source of information is always the relevant government authority.
Subsidy processing is the sole responsibility of the client and/or the management company they independently choose to engage. Agua Therm plays no part in this process and accepts no responsibility for its outcome.
Official source: agenciaandaluzadelaenergia.es · idae.es
For your heat pump installation, contact Agua Therm for a free, no-obligation quote.
Real Energy Savings Calculator — No Subsidies Needed
Heat pumps pay for themselves through energy savings ALONE. Subsidies are an extra bonus — if they arrive.
📊 Bottom Line: Heat pumps pay for themselves in 2.5-4.5 years on energy savings ALONE
You don't need any subsidy for a heat pump to be an excellent investment. If you receive any grant in the future, it simply pays off faster.
Heat Pump Installation Across All 103 Málaga Municipalities
Agua Therm installs heat pump systems throughout Málaga province — from coastal Marbella to mountain villages. We are familiar with local permit requirements for every municipality. Subsidy applications are handled by you or an independent specialist company; we provide all the installation documentation you need.
Málaga-Costa del Sol
10 municipalities — installation coverage
Axarquía
35 municipalities — installation coverage
- Rincón de la Victoria
- Vélez-Málaga
- Nerja
- Torrox
- Frigiliana
- Competa
- Sayalonga
- Algarrobo
- Arenas
- Canillas de Albaida
- Canillas de Aceituno
- Sedella
- Salares
- Árchez
- Corumbela
- Cútar
- Benamargosa
- Benamocarra
- El Borge
- Totalán
- Comares
- Almáchar
- Moclinejo
- Macharaviaya
- Iznate
- Periana
- Riogordo
- Colmenar
- Casabermeja
- Villanueva de la Concepción
- Alcaucín
- Alfarnate
- Alfarnatejo
- Cómpeta
- La Viñuela
Valle del Guadalhorce
8 municipalities — installation coverage
Antequera
17 municipalities — installation coverage
Serranía de Ronda
19 municipalities — installation coverage
Sierra de las Nieves
15 municipalities — installation coverage

Municipalities with Published Rebates (Verify Availability)
Rates below are from published ordinances and may not reflect current availability
Marbella
Published: 50% IBI rebate × 6 years + 95% ICIO reduction. Verify with Ayuntamiento.
Málaga Capital
Published: 45% IBI × 5 years + 90% ICIO. Verify with Ayuntamiento.
Mijas
Published: 50% IBI × 5 years + 90% ICIO. Verify with Ayuntamiento.
Fuengirola
Published: 40% IBI × 5 years + 85% ICIO. Verify with Ayuntamiento.
Ready to Save 60-80% on Energy Bills?
Agua Therm installs heat pumps across Málaga province. Free, no-obligation quote — based on real energy savings, not subsidy promises.
Agua Therm is an installation company. We do not process subsidies. For subsidy help, see the specialist companies listed on this page.
About the Author

Ben Hayden
English-Speaking Electrician & Independent Energy Advisor
Ben Hayden is an English speaking electrician and independent energy advisor based in Marbella, Spain, with over 15 years of electrical experience across Europe. He provides independent energy and electrical checks for overseas property owners and managers across the Costa del Sol — helping clients cut electricity bills, navigate Spanish regulations, and make confident decisions on solar PV, heat pump, EV charger and battery storage projects.
Ben advises in plain English on projects where the paperwork is in Spanish and the stakes are high. His writing has appeared in ExpatArrivals, The Olive Press, Euro Weekly News, BuildingTalk and pv magazine.
Important disclaimer — Information changes daily
Subsidy amounts, eligibility criteria, deadlines, and programme availability can change without notice. Information on this page is provided as a general guide only and may not reflect the current status of grant programmes.
Agua Therm is an installation company only. We do not handle subsidy applications, IRPF tax deductions, IBI/ICIO municipal applications, or any grant paperwork. We strongly recommend speaking with an independent subsidy specialist before committing to any installation, so you are fully informed of the options available at that time.