In September 2006, the new construction law (Código Técnico de Edificación) came into force in Spain. This new law obligates the installation of thermal solar systems in all new constructions - including single-family houses, apartment buildings, hotels, hospitals, sport centers, etc. - to produce hot water.

According to the new construction law, it´ s also obligatory to install photovoltaic solar systems in industrial buildings, hotels or hostels with more than 100 rooms, hospitals and hypermarkets, etc.

The new law is one of the initiatives that Spanish government take to reduce the use of conventional energy and achieve the objective set by the European Union to increase the share of energy produced from renewable energy sources (RES) to 12% of the whole energy consumption by 2010.

The Spanish government approved in 2005 "the Renewable Energy Plan 2005- 2010”. This plan is designed to attract 23 billion Euro (approx. USD$27 billion) in investment by improving the legislative environment for renewable energy. Of this 97.1 percent is expected to come from private sources. In addition to the direct investment subsidies, premiums are paid for electricity generated from renewable sources.

The premiums for electricity generated from renewable sources are fundamental. This system has been used successfully to date and has created the favorable conditions for the spectacular growth of certain sectors, in particular wind power. The premium is a supplement to the price electricity producers can obtain on the market.