Valencia Province empowers municipal action to accelerate solar deployment and promote change locally

From commitment to action at local level

The Province of Valencia, located in Spain’s Comunitat Valenciana, is home to 266 municipalities with very diverse demographic and territorial characteristics. While a small number of coastal cities concentrate a large share of the population and economic activity, the vast majority of municipalities are small or medium-sized, often with limited technical and financial capacity to address climate and energy challenges on their own.

This context clearly illustrates why intermediate levels of government can play a decisive role in accelerating local climate action. Since 2016, the Diputació de València has acted as Territorial Coordinator of the EU Covenant of Mayors for Climate and Energy (CoM), providing strategic, technical and financial support to municipalities and enabling them to turn political commitments into concrete results.

Building capacity for Covenant of Mayors commitment  

One of the first actions undertaken by the Diputació de València as Covenant Coordinator was the development of a tailored methodology, officially validated by the Covenant of Mayors Office. This methodology includes a comprehensive catalogue of 67 mitigation actions and 7 adaptation actions, while allowing municipalities to add measures adapted to their local realities.

In parallel, the provincial authority prepared a provincial-scale Baseline Emission Inventory, which served as a reference framework for municipalities. Between 2016 and 2017, the Diputació launched dedicated grant schemes to help municipalities prepare their own Baseline Emission Inventories (BEI), Climate Risk and Vulnerability Assessments, and Sustainable Energy and Climate Action Plans (SECAPs), and to upload them to the Covenant platform.

With a total budget of €1.45 million, these grants supported 203 municipalities. Importantly, Covenant membership also became a positive criterion for accessing other provincial funding programmes, creating an additional incentive for local authorities to join.

As a result of this coordinated approach, the number of Covenant signatories in the province increased from just 13 municipalities in 2015 to 253 by the end of 2024, representing over 94% of all municipalities in Valencia Province.

Identifying and removing local barriers to climate action

As its work progressed, the Diputació de València identified a key obstacle to the implementation of local climate action plans: fragmented and often restrictive municipal regulations, particularly in relation to photovoltaic self-consumption. Despite national regulatory improvements and the removal of the so-called “sun tax” in 2019, local permitting procedures and heterogeneous municipal ordinances continued to slow down deployment.

Recognising the regulatory autonomy of municipalities as both a challenge and an opportunity, the provincial authority decided to act where it could have the greatest leverage: local regulation and fiscal policy.

More municipal ordinances: a catalyst for change

In 2020, the Diputació de València drafted and disseminated four model municipal ordinances:

• One technical ordinance to regulate and simplify the authorisation of photovoltaic self-consumption installations.
• Three fiscal ordinances to promote self-consumption through tax incentives, including rebates on Property Tax (IBI), Construction Tax (ICIO) and Business Tax (IAE).

These model ordinances were designed as practical tools that municipalities could easily adapt and approve, significantly reducing administrative uncertainty and lowering barriers for citizens, businesses and installers.

The impact was substantial. Before the publication of the model ordinances, only two municipalities in the entire province had specific regulations on photovoltaic self-consumption. By the end of 2023, 58 municipalities had approved ordinances inspired by the provincial models, and 129 municipalities had introduced some form of IBI tax rebate for photovoltaic installations.

This rapid regulatory uptake demonstrates how a Covenant Coordinator can use soft governance instruments—guidance, templates and peer learning—to unlock local action at scale.

Translating Regulation into Real Climate Impact

Beyond regulatory change, the provincial analysis shows a clear correlation between supportive municipal ordinances and the actual deployment of photovoltaic self-consumption systems.

Municipalities with approved photovoltaic ordinances and tax incentives show significantly higher levels of self-consumption per capita. For example, municipalities offering IBI rebates average around 70 inhabitants per self-consumption installation, compared to nearly 120 inhabitants per installation in municipalities without such incentives.

These findings confirm that local regulatory and fiscal tools, when strategically coordinated at provincial level, can directly influence investment decisions and accelerate the energy transition on the ground.

Leading by Example: Public Buildings and Demonstration Effects

In addition to regulatory support, the Diputació de València has complemented its Covenant Coordinator role with direct financial support for renewable energy installations on municipal buildings. Since 2018, provincial grant schemes have enabled the installation of 455 photovoltaic self-consumption systems on public buildings across the province.

This approach serves a dual purpose. It reduces energy costs and emissions for local authorities, while also reinforcing the demonstration effect of public leadership. Municipal buildings equipped with solar panels become visible symbols of the energy transition and help build trust and acceptance among citizens.

A comparison with the other provinces in the region shows that Valencia has achieved a higher average number of municipal photovoltaic installations per municipality, underlining the effectiveness of combining strategic coordination with targeted financial support.

Read the full report (in Spanish) to find out more about this approach.

Lessons learnt for Covenant Coordinators across Europe

The experience of Valencia Province highlights several key lessons for Covenant of Mayors Coordinators:

• Capacity-building matters: Small and medium-sized municipalities need structured technical and financial support to meet their climate commitments.
• Local regulation is a powerful lever: Municipal ordinances and fiscal incentives can significantly accelerate climate action when barriers are removed and rules are harmonised.
• Coordination multiplies impact: A provincial authority can act as a catalyst by developing shared tools, aligning incentives and creating a common direction of travel.
• Public leadership reinforces credibility: Investments in municipal buildings strengthen the legitimacy and visibility of local climate action.

Next steps

Building on this experience, the Diputació de València plans to continue supporting photovoltaic self-consumption in municipal buildings, update and re-disseminate its model ordinances to reflect regulatory and technological changes, and place greater emphasis on shared self-consumption solutions in larger urban areas.

By acting as an active and enabling Covenant of Mayors Coordinator, Valencia Province demonstrates how intermediate administrations can bridge the gap between European climate ambitions and local implementation—turning commitments into tangible results for citizens, municipalities and the climate. 

Diputació de València, Spain

Covenant Territorial Coordinator since 2016

Population: 2.763.996

Area covered: Provincial (10.841,82 km²)

Key figures

• 94% of municipalities engaged: Covenant of Mayors signatories in Valencia Province increased from 13 municipalities in 2015 to 253 by the end of 2024, representing 94.05% of all municipalities in the province.
• €1.45 million invested in local climate Planning: Between 2016 and 2017, the Diputació de València allocated €1.45 million to support municipalities in preparing Baseline Emission Inventories, Climate Risk and Vulnerability Assessments, and SECAPs, benefiting 203 municipalities.
• From 2 to 58 municipal PV ordenances: Before the publication of the provincial model ordinances in 2020, only 2 municipalities had specific regulations on photovoltaic self-consumption. By December 2023, this figure had risen to 58 municipalities.
• 129 municipalities offering property tax incentives for solar PV: As a result of the model fiscal ordinances, 129 municipalities in Valencia Province now apply some form of IBI (property tax) rebate for photovoltaic self-consumption installations.
• 455 solar PV installations on municipal buildings: Provincial grant schemes since 2018 have enabled the installation of 455 photovoltaic self-consumption systems on public buildings, reinforcing both emissions reduction and the demonstration effect of local public leadership.

Useful links

• Link to original report in Spanish
• Diputació de València. (s.f.). Solar fotovoltaica. Medi Ambient.
• European Union. (s.f.). EU Mission on Climate-Neutral and Smart Cities. EU Covenant of Mayors for Climate & Energy.
• Generalitat Valenciana. (s.f.). Autoconsum elèctric. Conselleria d’Innovació, Universitats, Ciència i Societat Digital.
• Unión Española Fotovoltaica. (s.f.). Recursos e informes. UNEF.