The flour hangs in the air like snow. Thick, white, everywhere. On the floor, on the shelves, on the hair of Stanisław Nowak, who for forty-five years has been getting up at three in the morning to bake bread for his neighborhood. He is seventy-two years old, but his hands – wrinkled, covered with scars from burns – move with the precision of a surgeon.
The Sun Rises in Carabanchel: A Neighborhood’s Fight Against High Energy Bills
Marian Álvarez, a 59-year-old resident of the Tercio Terol neighborhood in Carabanchel, Madrid, had enough. For three consecutive months, her electricity bills from Iberdrola soared to an astonishing 1,000 euros. These charges quadrupled her usual consumption, linked to an old, defunct hourly discrimination tariff. Marian knew she had to act. After discussing with her neighbors, they decided to mobilize, forming a cooperative that has now become the envy of other Madrid communities.
The Tercio Terol area boasts several unique characteristics that made it ideal for this ambitious project. Crucially, no tall buildings obstruct the sunlight, most residents own their rooftops, and – increasingly rare in the capital – a strong sense of community still thrives among its inhabitants.
From Frustration to Federation: The Birth of an Energy Community
The journey began in 2021 when about fifty residents united to install solar panels on their roofs, giving birth to the Tercio y Terol Energy Community. Despite bureaucratic hurdles and pressure from electricity companies, the experiment has been so successful that other neighborhoods in southern Madrid are now considering adopting a similar model. This idea gains particular traction as international instability threatens to push electricity prices back above 100 euros per megawatt-hour.
The path, however, has been far from smooth. They faced challenges due to the colony’s historical and protected status, navigated complex bureaucracy to apply for European Union subsidies, and, as they lament, received no support from the City Council. Yet, in their quest for more affordable bills, they achieved something perhaps even more valuable: they strengthened their community. As Marta Pascual, a 63-year-old resident of the English-inspired colony, notes, it created an opportunity for neighbors to truly get to know each other in a city where such spaces are increasingly rare.
A Helping Hand and Shared Rooftops
One of the initial guiding forces behind their project was the NGO Light Humanity, which had previously helped install solar panels in Cañada Real after Naturgy left the settlement without electricity. Light Humanity convinced the residents of Tercio Terol of their neighborhood’s suitability, emphasizing the unobstructed sunlight. Installing solar panels for self-sufficiency is now just one of many initiatives undertaken by the association.
Each participating resident invested 2,200 euros per installed kilowatt (equivalent to two panels). For example, Marian Álvarez invested 6,600 euros for three kilowatts in her home. Other residents, like 38-year-old Marcos Martínez, purchased half a kilowatt. In his case, lacking his own rooftop as he lives in a nearby building, a generous neighbor ceded theirs for his solar panel installation. “Everyone has shared their rooftops; the neighbors have been very generous,” Martínez affirms. Additionally, some have utilized the rooftops of the San Martín de Porres Social Work headquarters.
The Power of Collective Action: From Waiting Lists to Energy Independence
Since 2021, the community has undergone many phases. Some residents opted to proceed independently, others chose to await subsidies, and some, particularly after blackouts, were inspired to join the community, which now has a waiting list. “Being a member of our cooperative means being a co-owner of an energy company. That is, you will consume your own 100% green energy, without paying more and receiving the best service,” they state on their website.
Currently, 41 homes with panels belong to 38 residents and three local families experiencing energy poverty. They have received a subsidy exceeding 100,000 euros, which they estimate will reimburse approximately 40% of their investment.
In this model, residents inject the energy generated by their solar panels into the grid. This output is measured by a meter, similar to those used for consumption. Since all participants are linked to the same distributor, this meter allocates production to each resident according to an agreed distribution. For instance, if 10 people participate, Martínez explains, the generated energy is divided equally. Subsequently, the electricity company discounts the energy generated by each user from their bill. The community also offers members a personalized bill analysis. “We can come to your house with a potentiometer and measure the power on-site by running all your appliances,” Martínez guarantees.
Only one final step remains. “We are awaiting authorization from Iberdrola, the distributor, to activate the system so that the captured energy goes directly to our homes and not to the general grid,” explains Álvarez from what she affectionately calls the “Carabanchel moral tale.”
A Model for Madrid’s Future: Vallecas and Villaverde Follow Suit
In the districts of Vallecas and Villaverde, similar initiatives are already underway to create two energy communities utilizing the rooftops of their educational centers. In Vallecas, the project involves installing solar panels on the roof of a subsidized school, which has ceded the space through an agreement. The school will receive 15% of the generated energy for its own consumption, while 10% will be allocated to families facing energy poverty. The remaining 75% will benefit residents and small businesses who have collectively financed the installation through discounts on their electricity bills.
This initiative also aims for growth, with plans to incorporate new rooftops and establish a distributed network of solar installations across the neighborhood. One of its key objectives is to develop a replicable model that the Regional Federation of Neighborhood Associations of Madrid can use to facilitate the creation of similar energy communities in other districts. “It is currently in the legal constitution phase and formalization of agreements, in coordination with the involved administrations,” explain the Brillaverde energy community.
Source: https://elpais.com/espana/madrid/2026-04-04/marian-se-harto-de-pagar-1000-euros-al-mes-por-la-luz-y-convencio-a-sus-vecinos-para-montar-la-primera-comunidad-energetica-de-madrid.html
