Budgeting

Energy retrofit incentives 2026: what to renovate first in Alicante

18 May 20263 min read

The incentive starts with diagnosis, not invoices

Spain has extended tax deductions for energy-improvement works carried out in 2025 and 2026, with percentages linked to reductions in heating and cooling demand, primary-energy consumption or energy-rating improvements. For homeowners, that turns the energy certificate into a planning tool, not an end-of-project formality.

In Alicante, where summer comfort matters as much as winter consumption, the whole home should be assessed: orientation, solar exposure, windows, insulation, air leakage, HVAC equipment and usage habits.

The sequence that avoids paying twice

Measure first. Improve the envelope next. Then adjust HVAC. Installing a powerful system before reducing thermal loads can leave you with oversized, more expensive and less efficient equipment.

In apartments, realistic measures often include exterior joinery, solar protection, targeted internal insulation, air-sealing and efficient equipment. Detached homes have more scope for roofs, facades, heat pumps, solar and mechanical ventilation.

Energy retrofit roadmap

A practical order to avoid losing incentives through poor documentation.

1
Initial energy certificateBefore works
Commission it before works begin so the improvement can be compared and justified.
2
Measure simulationDesign
Ask the technician to compare windows, insulation, shading, heat pumps and combinations to target the required improvement.
3
Itemised budgetContracting
Separate labour, materials, equipment, certificates and fees to control real cost and potential deductions.
4
Final certificate and invoicesClose-out
Keep the post-works certificate, payment proof, invoices and technical report in case the tax authority or grant body requests them.

Frequently asked questions

Which percentage can I deduct?

It depends on the certified improvement: deductions of 20%, 40% or 60% may apply depending on demand reduction, consumption reduction or whole-building energy renovation. Always confirm your case with a tax adviser.

Is replacing windows enough?

Sometimes, but not always. What matters is the certified energy improvement, not the isolated work item.