Scott Verdine Stumpf admitted to accidentally starting the blaze in August last year after attempting to burn soiled toilet paper following a call of nature in the woods off a forest trail.
The wildfire devastated around 5,000 acres of forest, engulfing the town of El Paso and forced the evacuation of hundreds of residents.
Verdine, a loner who was reportedly living in a cave on the island at the time, was arrested by a Civil Guard patrol who discovered him walking along the road as they went to the scene once the forest fire alarm was raised.
The fire claimed the life of a Francisco José Santana, a 54-year-old forest ranger and father of five, who was a member of one of the teams battling to control the flames.
READ MORE: German firestarter blames blaze on toilet paper mishap
A provincial court in Santa Cruz de Tenerife ruled that Verdine should also pay €1.8 million ($2 million) for the restoration of the affected forest areas and compensate the relatives of the deceased forest worker.
Tres años de cárcel para el hippy alemán del incendio forestal de La Palma https://t.co/ukwfZ96u98
— ABC.es (@abc_es) May 6, 2017