Electric Bills to Rise in 2025 – Are You Paying 30% More Than Necessary?

Spain’s Organización de Consumidores y Usuarios (OCU) has published a study showing that households in Spain could be paying 30% more on electricity bills than others with similar consumption. 

The reason? Variations in pricing policies between providers.

The study, financed by the Ministry of Social Rights and the 2030 Agenda, analysed 11,183 domestic electricity bills from 2024. 

It found that the final price of a bill increasingly depends on fixed charges like contracted power rather than consumption. As customers grow more aware of variable costs (kWh rates), providers have shifted their strategies, making fixed costs more complex to understand.

“Many customers know how to compare kWh prices, but they struggle to determine what’s expensive or cheap for fixed charges,” said the OCU. 

“This makes it almost impossible for consumers to know if they’re being charged fairly. In some cases, customers of the same provider pay 30% more or less depending on the tariff they’ve chosen, which complicates the concept of expensive or affordable providers.”

Tax Increases Add to Rising Costs

The timing couldn’t be worse. 

On January 1, 2025, the IVA (VAT) on electricity bills returned to its pre-pandemic rate of 21%, up from the reduced 10% applied during the energy crisis. 

This change alone is expected to add €7–€10 to monthly bills for many households, according to the OCU study.

Additionally, the regulated gas tariff (TUR) has increased by 10%, and the tarifa vecinal (neighbourhood tariff) has seen hikes of between 13.5% and 18.3%. The fixed charges on electricity bills, which were reduced during the energy crisis, have also risen by 33% for typical consumers and up to 39% for others.

While some costs, like grid access fees, have decreased slightly (4.4%), the overall trend points to a steep uphill climb for energy expenses in 2025.

Incentives for Going Solar in 2025

Many homeowners in Spain will remember the spike in electricity prices in 2021-2022 following the outbreak of war in Ukraine.

During that period, Spain saw a surge in solar energy installations—especially as installations could receive a grant payment up to as much as 40% of the total installation costs.

Grants from NextGenerationEU funds for solar panel installations have now expired in the main areas where expats live in Spain: Andalucia, Murcia and the Valencian Community.

But the Spanish government has extended subsidies for electric vehicles (EVs) and chargers. 

Under the MOVES program, buyers can receive up to €7,000 for EV purchases and up to €1,500 for home chargers, with these incentives lasting until June 30, 2025.

Despite the absence of new solar grants, interest in solar installations remains steady.

Many English-speaking solar installers in Spain expect that the rise in electricity prices will create another surge in installations in early 2025.

“We’re not seeing a drop in interest for solar panels,” said Adam Millington, co-owner of Marblanc Solar who installs solar panels in Marbella. “Some of our clients have electricity bills of €400, €500, or even over €800 a month. For them, the savings are significant.”

“Anyone with an electric car, a pool heater, or a heat pump can see even greater cost reductions.”

“We are passionate about solar energy as it helps to protect the planet—but it has to make economic sense. With the rise in electricity bills in 2025, it still does.”

As energy prices climb and climate concerns grow, solar power continues to offer an appealing solution for households seeking both financial relief and sustainability. 

For many, it’s a step toward energy independence, even in an increasingly challenging economic environment.