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Spain is the fourth largest manufacturer in the world of solar power technology and exports 80 percent of this output to Germany. Spain is one of the most attractive countries with regard to the development of solar energy, as it has the greatest amount of available sunshine of any country in Europe.

The Spanish government wants to produce 12 percent of primary energy from renewable energy by 2010. That would mean a solar generating capacity of 400 megawatts. Through a ministerial ruling in March 2004, the Spanish government removed economic barriers to grid-connection of renewable energy. The widely applauded Royal Decree 436/2004 equalises conditions for large-scale thermal and photovoltaic plants and guarantees feed-in tariffs.