Solar Energy Investment in Turkey – Legal Guide for Foreign Investors

1. Introduction

Solar energy investment in Turkey is one of the fastest-growing opportunities for foreign investors looking to enter the renewable energy market. With over 2,640 hours of sunshine annually, favorable government incentives, and a strong legal framework, Turkey offers an ideal environment for building solar power plants. This guide from AdvocaTeTurkey explains every step—licensing, permits, grid connection, environmental compliance, and incentives—so you can start your project with clarity and confidence.


2. Legal Framework and Regulatory Authorities

Solar energy projects in Turkey are primarily regulated by:

The main legal basis for solar projects is the Law No. 5346 on the Use of Renewable Energy Sources and the Electricity Market Law No. 6446.


3. Pre-Investment Stage

3.1. Solar Resource Measurement and Feasibility

A successful solar energy investment in Turkey starts with a detailed solar resource analysis, including irradiation data, shading assessments, and panel efficiency projections. This data is essential for technical planning and securing financing.

3.2. Land Selection and Ownership

Investors must secure land with optimal exposure to sunlight, either through purchase, long-term lease, or government allocation. Legal due diligence ensures the land is free of disputes, mortgages, or use restrictions.


4. Licensing and Permit Process

4.1. EPDK Generation License

Most large-scale solar power plants require an EPDK generation license. Application requirements include:

  • Turkish-registered company documents.
  • Technical feasibility report.
  • Financial plan.
  • Solar resource analysis.
  • Land use rights documentation.

Licenses can be valid for up to 49 years, giving long-term security to investors.

4.2. Unlicensed Generation

Projects up to 5 MW can operate without a license but must still comply with technical and safety regulations and obtain grid connection approval.


5. Grid Connection

After licensing, the investor must sign a grid connection agreement with TEİAŞ or the relevant distribution company. This outlines connection points, capacity, and infrastructure requirements.


6. Environmental Approvals

6.1. Environmental Impact Assessment (EIA)

Large-scale projects may require an EIA Positive Decision, while smaller ones can obtain an EIA Not Required Certificate. The EIA assesses environmental risks and outlines mitigation strategies.

6.2. Special Land Permissions

  • Forestry land requires permission from the General Directorate of Forestry.
  • Agricultural land requires non-agricultural use permission from the Ministry of Agriculture.

7. Zoning and Construction Permits

Before construction, investors must obtain:

  • Zoning plan approval from local authorities.
  • Construction permits in line with approved designs.

8. Construction, Installation, and Pre-Operation

Solar energy investment in Turkey involves installing photovoltaic panels, inverters, and transmission systems according to international standards. After installation:

  • Conduct pre-commissioning tests.
  • Sign a system usage agreement with TEİAŞ or the local distribution company.

9. Commercial Operation and Energy Sales

Once operational, the investor can:

  1. Sell electricity in the free market.
  2. Join the Renewable Energy Support Mechanism (YEKDEM), which guarantees purchase prices for solar energy and offers additional incentives for locally manufactured components.

10. Incentives for Foreign Investors

10.1. Investment Incentive Certificate

Provides:

  • VAT exemption.
  • Customs duty exemption.
  • Corporate tax reduction.
  • Interest rate support.

10.2. Double Taxation Agreements

These agreements allow foreign investors to repatriate profits without being taxed twice.


11. Legal Considerations and Risk Management

  • Ensure all contracts comply with Turkish law and international private law.
  • Perform full environmental and land due diligence before construction.
  • Work with experienced legal advisors specializing in solar energy investment in Turkey to minimize regulatory and operational risks.

12. Conclusion

Solar energy investment in Turkey offers high profitability, long-term stability, and significant government support for foreign investors. By following the correct steps—feasibility, licensing, grid connection, environmental compliance, and commercial operation—investors can secure both financial returns and contribute to Turkey’s renewable energy transformation.

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