As of 2023, Andorra’s total solar power installed capacity is 04 MW.⁵

A total of 105 MW of solar installations will be installed across Andorra till 2026.⁶

Overall, while Andorra does not produce the majority of its electricity, its small size and strategic agreements with neighboring countries help maintain a reliable and affordable electricity supply. Hence, exact costs are not given but following is the related information is given;⁷⁸

• Andorra imports most of its electricity from France and Spain.
• The price of gasoline in Andorra is approximately $1.41 per liter.
• Andorra has one of the lowest electricity prices in Europe.

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Exact number of hours are not available but;¹⁰¹¹

• The average availability of electricity in Andorra is generally reliable, with the country importing about 80% of its electricity from France and Spain, while the remaining 20% is produced locally, mostly through the Engolasters hydroelectric plant. Despite being dependent on external energy sources, Andorra benefits from stable supply agreements that ensure minimal price fluctuations and consistent service.
• Recent power outages, like the one that occurred last month, lasted only about 20 minutes, indicating that interruptions are rare and brief. Andorra’s utility company, FEDA, works to maintain low electricity prices and a stable supply, leveraging hydroelectric production during peak hours to reduce reliance on imported energy at high costs.

Current installation ¹²¹⁴

Not available but following information is given;

• By the end of the first half of 2021, Andorra have 107 photovoltaic installations integrated into buildings.
• The application Solar Resources of Rooftop Solar Panels (OBSA), developed by the Observatori de la Sostenibilitat d’Andorra (OBSA), is designed to assess the solar potential of rooftops in Andorra.
• It provides indicators on the benefits and feasibility of using solar energy on buildings, allowing homeowners and businesses to evaluate the potential for solar panel installations. 

Projected installations ¹³

Total projected number is not available but;

• The future target for solar homes in Andorra is part of a broader renewable energy and social-economic development plan led by Endesa, through its subsidiary Enel Green Power España.
• This plan includes the development of 10 energy communities, including Andorra and surrounding towns, where self-consumption solar plants will be installed on 40 public sites. These plants, are expected to provide electricity to 3,800 beneficiaries, promoting autonomy and energy efficiency.

Installed Solar Farms ¹⁴

By the end of the first half of 2021, there were 107 photovoltaic installations with a combined capacity of 2,638 kWp​

 Projected Solar Farms ¹³

Exact projected number is not available but;

• Endesa is establishing energy communities in 9 municipalities, focusing on self-consumption solar plants to increase energy efficiency and independence.
• Over 3,000 residents are expected to benefit from these installations.

¹⁵

Current Off-Grid Market Demand in Andorra:

• Andorra’s current off-grid solar market demand is primarily influenced by the growing interest in sustainable living among its residents.
• With a stunning natural landscape and a focus on eco-friendly practices, many individuals are looking to adopt off-grid solutions such as solar photovoltaic (PV) systems.
• The trend towards self-sufficiency has gained traction, especially among those who wish to reduce their environmental footprint and achieve energy independence.
• The government’s supportive policies, including incentives for renewable energy installations, have further bolstered demand.
• Local communities are increasingly exploring options like rainwater harvesting and composting to complement their solar energy systems, reflecting a broader shift toward sustainable living.
• Additionally, Andorra’s low pollution levels and pristine environment make it an attractive destination for those seeking an off-grid lifestyle, further driving the market demand for renewable energy solutions.

Future Off-Grid Market Demand in Andorra:

• The future off-grid market demand in Andorra is anticipated to grow significantly as the government and local communities continue to emphasize sustainability and self-sufficiency.
• As more residents express interest in off-grid living, the adoption of renewable energy technologies such as solar panels and energy storage systems is expected to rise.
• Ongoing feasibility studies for innovative energy solutions, including microgrids and community solar projects, will likely enhance accessibility to off-grid systems for a broader population.

¹⁶

Current Situation (2023):

• Market Condition: The Herfindahl-Hirschman Index (HHI) of Andorra’s solar panel market was 4401 in 2023. This indicates a concentrated market with moderate competition.
• Growth Drivers: The solar panel market in Andorra is expected to evolve with increasing demand, driven by the need for renewable energy solutions.
• Key Segments: The Andorra solar panel market is segmented into types such as crystal silicon, monocrystalline silicon, polycrystalline silicon, thin film, and others. These products are further segmented by their end-users, encompassing commercial, residential, and industrial sectors. Residential users make up a significant portion of the market due to rising interest in off-grid solutions and energy independence.

Future Outlook (2030):

• Market Growth: The forecast extends to 2030, with projections for revenue and volume growth across various segments, including monocrystalline, polycrystalline, and thin film
• Export Opportunities: Spain is identified as a high-potential market for Andorra’s solar panel exports by 2028, followed by France, Netherlands, Germany, and Hungary. Despite USA having the highest import demand, Spain remains the most attractive market for Andorra based on unmet demand potential.
• Market Life Cycle: The industry is likely moving through its life cycle, with continuous advancements in solar technology and market competition.

A Solar Photovoltaic Installer working in Andorra typically earns around $32,300 per year, with salaries ranging from a low average of about $15,600 to a high average of $49,400, depending on experience and qualifications.¹⁷

The current population of Andorra is 82,225.¹⁸

Estimate for Factory Rent

Monthly Average Warehouse Rental Cost ¹⁹

Following are the rents in Carretera de la Comella i de la Plana, Centro, Andorra la Vella of different warehouse sizes:

Size: 626 m² ( $8.45/m²)

• Rent: (~$5,291/month)

Size: 744 m² ( $8.52/m²)

• Rent: (~$6,349/month)

Size: 900 m² ($8.82/m²)

• Rent: (~$7,936/month)

Key Components of Administrative Costs

Salaries and Wages: ¹⁷

A Solar Photovoltaic Installer working in Andorra typically earns around $32,300 per year, with salaries ranging from a low average of about $15,600 to a high average of $49,400, depending on experience and qualifications.

Commercial Electricity Prices ³

Businesses in Andorra are offered different tariffs (blue, red, and green) based on their power consumption:

• Blue Tariff: $18.62 cents/kWh
• Red Tariff: $22.23 cents/kWh
• Green Tariff: $22.23 cents/kWh

Monthly Rents for Office Space ²⁰

Average Rent Range: $295 to $8,135/month, depending on the location and size of the office space.

Electricity Generation ²¹

• Andorra’s electricity generation primarily relies on hydropower, photovoltaics, cogeneration, and the Waste Treatment Center.
• The country imports most of its electricity from France and Spain.

 Transmission & Distribution ²²

• Andorra is connected to the electricity grids of both France and Spain. The country’s electricity transmission network is linked to these neighbouring countries, allowing for the import and export of electricity as needed.
• The primary entity responsible for electricity transmission in Andorra is FEDA (Forces Elèctriques d’Andorra). FEDA manages the electricity supply, distribution, and the operation of the transmission network within the country.

 Energy Access ²³

• As of 2022, the World Bank reported that 100% of the population in Andorra had access to electricity.

Energy Exports ²⁴

• Andorra’s top exports include Paintings ($211M), Integrated Circuits ($45.7M), Cars ($26.9M), and Orthopedic products.

In Andorra, solar energy is increasingly promoted as a means to enhance sustainability and reduce dependence on traditional energy sources. However, the installation of solar panels is governed by a set of regulations to ensure that projects meet environmental standards and contribute to energy efficiency. Below are the key regulations and considerations for solar installations in the country:²⁵

Permit Requirements

Before installing solar panels, homeowners and businesses must acquire the necessary permits from local authorities. This process ensures that the installation complies with municipal laws and building codes. The permits typically cover aspects such as:

• Structural safety of the building
• Compatibility with the building’s energy system
• Visual impact on the surroundings

Energy Certification

Any building undergoing renovations, including the installation of solar panels, must meet Andorra’s energy certification regulations. These regulations ensure that the building achieves a certain level of energy efficiency, which not only reduces operational costs but also adds long-term value to the property. Solar installations are seen as a key component in enhancing a building’s energy rating.

The government of Andorra, in collaboration with private entities like Endesa, has initiated several programs and subsidies to support solar panel production and renewable energy in the region. Key initiatives include:²⁶²⁷

Investment in Renewable Energy Projects

The Ministry of Ecological Transition and the Demographic Challenge awarded a tender for large-scale solar, wind, and hybrid projects in Andorra. Endesa, through its renewable subsidiary Enel Green Power España, is investing over €1,500 million in renewable energy projects in Andorra, including solar panel production and installation.

Solar Tracker Factory

An agreement with Soltec will lead to the construction of a solar tracker factory in Andorra, reusing facilities from the former coal power plant. This initiative aims to support solar panel production and create 40 permanent jobs.

Energy Communities for Self-Consumption

Endesa is establishing energy communities in 9 municipalities, focusing on self-consumption solar plants to increase energy efficiency and independence. Over 3,000 residents are expected to benefit from these installations.

Government Support for Self-Consumption and Energy Independence

Andorra provides a range of incentives and subsidies to promote the adoption of renewable energy, including solar power.

Renova Programme

The Renova programme encourages energy efficiency in buildings and the use of renewable energy, such as solar power:

• Direct Subsidies: A budget of approximately $1.6 million USD is allocated for energy efficiency projects, with an additional $160,000 USD specifically for the installation of photovoltaic solar panels.
• Guaranteed Loans: Around $14.8 million USD is available to guarantee loans under the programme to assist in financing energy-efficient improvements.

Renova+ Programme

This sub-program promotes energy efficiency in buildings to achieve A or B energy certifications:

• A Certification: The subsidy ceiling is raised to $133,000 USD, with a subsidy rate of 30%.
• B Certification: The ceiling is set at $106,000 USD, with a subsidy rate of 25%.

Photovoltaic Solar Installations (Renova fv)

The Renova fv programme offers direct support for installing photovoltaic solar panels:

• Subsidy Rate: Covers 40% of the installation costs, with a maximum subsidy of up to $21,300 USD.
• Self-Consumption Law: Andorra encourages self-consumption of photovoltaic energy rather than selling it to the grid, making solar energy more accessible for personal use.

Current Projects

Renova Programme Photovoltaic Installations ²⁸

• Location: Various residential and commercial buildings across Andorra.
• Capacity: Individual installations range from 2 kW to 20 kW, depending on the building size

 Mudéjar Photovoltaic Plant ²⁹

• Capacity: 69.2 MWp
• Location: On the site of the former coal park of the Andorra thermal power plant, using the land of the closed “Mas de Perlé” landfill.
• Details:
  • Covers 111.4 hectares.
  • Includes 126,504 photovoltaic modules (crystalline technology with a fixed structure).
  • Will generate over 128 GWh of electricity per year (sufficient for about 32,000 households).
  • Will prevent the emission of approximately 52,196 tons of CO₂ annually.
  • Expected completion: End of 2024.
  • Investment: 48.5 million euros.

Sedéis V Solar Park

• Capacity: 49.71 MWp
• Location: Undisclosed location in Andorra.
• Details:
  • The first solar farm by Endesa in Andorra.
  • Began operations in December 2023.

 SolAndorra I (Future Project):

• Capacity: 25 MW
• Location: La Massana district, covering around 40 hectares.
• Details:
  • Will utilize advanced photovoltaic technology.
  • Aimed at reducing dependence on fossil fuels.

SolAndorra II (Future Project):

• Capacity: 15 MW
• Location: Escaldes-Engordany, spanning approximately 20 hectares.
• Details:
  • Will harness the high-altitude sunlight, maximizing energy capture.
  • Designed to provide power to local businesses and residential areas.

Pyrenees Solar Park (Future Project):

• Capacity: 10 MW
• Location: Eastern part of Andorra.
• Details:
  • Will use advanced solar panel tracking systems to follow the sun’s trajectory, enhancing efficiency.

Company Name: SUD Renovables (Powered by Soltech)

Website: https://sudrenovables.com/sud-andorra/

Location: Prat Primer, 4. 2-2, Andorra La Vella, Andorra

Products and Services:

• Solar Panels for Homes: Installation of solar panels designed for residential use.
• Solar Panels for Companies: Solutions for commercial solar panel installations.
• Solar Parks: Development of larger solar energy projects on land.
• Self-consumption Installations: Panels for houses, including those with slate roofs, ensuring aesthetic compatibility and efficient sunlight capture even in winter conditions.