New Rules of the Game: Moving Away from Fossil Fuels
Modern energy efficiency standards are prompting a rethink of home infrastructure. This issue becomes especially pressing in winter, as heating costs peak. Authorities in Spain’s autonomous regions are offering financial support to those willing to replace outdated equipment with more eco-friendly and cost-effective options. The boiler upgrade program, known as Plan Renove, underwent significant changes in 2025, reflecting the wider European shift toward decarbonization.
The key innovation is that, starting January 1, 2025, subsidies are no longer available for boilers operating solely on fossil fuels such as natural gas. This decision aligns with the EU’s goal of eliminating such systems entirely by 2040. Now, financial aid sourced from European funds is directed towards alternative solutions, including boilers running on liquefied gas (butane or propane), modern electric condensing systems, and equipment that uses biomass.
How to Get a Subsidy: Step-by-Step Guide
The assistance process is managed by regional authorities, so conditions and timelines may vary. However, the general procedure is similar across the country. First, you need to make sure you meet the basic requirements. The new boiler must be modern, energy-efficient, and run on alternative energy sources. The old equipment must be disposed of by an accredited specialist—it cannot be resold. It’s also important that both the manufacturer and the installer are officially registered in the regional program.
The next step is to choose an authorized company from the official list published on your local administration’s website. After that, you can start collecting the necessary documents and complete your application, which is usually submitted online. You will need to provide a copy of your DNI, your bank account number, invoices for purchase and installation, as well as certificates confirming both the installation of the new equipment and the disposal of the old one. Once your application is approved by the competent authority, the funds will be transferred directly to your specified account.
Regional differences: what you get and where
The amount and conditions of subsidies vary by region. For example, in Madrid, the Cambia 360 plan offers up to €500 for the installation of biomass boilers or hybrid systems. Applications are open until November 30, 2025. In the Valencian Community, the Renove program offers up to €400 for pellet boilers or aerothermal systems. In Galicia, the INEGA institute allows you to cover up to 60% of the cost of biomass boilers and heat pumps if you apply before December 15. Aragón, meanwhile, is focused on centralized systems in apartment buildings, providing support at a rate of €1 for every kilowatt of replaced boiler capacity.
Taxes and deductions: what you need to know about government money
It’s important to remember that the subsidy received is not entirely ‘free.’ This support must be declared as capital gains in your annual income report (IRPF). In addition, the subsidy amount reduces your tax base for the energy efficiency improvement deduction on your property. You cannot apply two deductions to the same expense without prior adjustment.
Let’s look at a clear example: you install a biomass boiler costing 3,000 euros and receive a regional subsidy of 1,200 euros. If you are eligible for a 40% tax deduction, it is calculated not on the full amount, but on the remaining sum (3,000 – 1,200 = 1,800 euros). Therefore, your deduction will be 720 euros. The tax authorities recommend keeping all documentation related to the installation and subsidy for at least four years in case of a possible audit.
