Local Socioeconomic Impacts of Solar PV Investment in Spain

Today, EnergyEcoLab presented the findings of the study on the Local Socioeconomic Impacts of Solar PV Investment in Spain, commissioned by UNEF.

The study applies state-of-the-art econometric techniques and highly granular municipal data to estimate the causal impact of solar PV deployment across five key dimensions: local labor markets, demographics, economic activity, income, and municipal finances.

• Job creation: Solar PV construction boosts local employment significantly (up to +13%), especially in municipalities with smaller populations.
• Demographic revitalization: PV investments help slow or reverse population decline. In some towns, population increased by up to 22%.
• Local economy: There’s an observable increase in the number of local businesses (notably in construction), housing prices, and moderate gains in income per capita (~0.5–1%).
• Public revenues: Municipal income from taxes increases by over 11% on average, enabling higher public spending.
• Positive heterogeneity: While effects vary, best outcomes occur where local capacity matches labor and business needs. Targeted policies (training, local contracting) can amplify gains.

This evidence supports the argument that solar PV is not only a decarbonization tool but also a powerful vector for rural development and economic dynamism.

Study available here.

Presentation available here.