Government Incentives for Solar Power Plant (SPP) Investments in Turkey

 

 

Incentives and supports for Solar Power Plant (SPP) investments vary depending on the geographical region in which the project is located.

For unlicensed solar energy systems established in Regions 1, 2, and 3, investors can benefit from incentives if they meet the minimum requirements.

In Region 4, all supports apply except interest rate support.

 

 

Available Supports

 

a) VAT Exemption

Applicable to the purchase of locally manufactured machinery and equipment.

b) Customs Duty Exemption

Applies to imported machinery and equipment, combining VAT exemption and customs duty relief.

c) Tax Reduction

• 70% Investment Contribution Ratio (YKO)
• Up to 30% of total investment expenses (including construction, machinery, excavation, etc.) can be deducted from corporate or income tax.
  If your company operates in another sector and owes taxes from that business, these taxes can be offset using the credit earned from this investment.

d) Social Security Employer Premium Support

• Can be applied to 25% of the total investment amount.
• Once the investment is completed and the incentive certificate is finalized, the employer’s share of SGK (social security) premiums for employees working at the investment site will be covered by the Treasury for 6 years starting from the month following certificate closure.

 

Minimum Requirements

• Minimum installed power: 240 kW
• Minimum investment amount:
  • Regions 1 & 2: 3,000,000 TL
  • Regions 3 – 6: 1,500,000 TL

 

 

Regional Classification for Investment Incentive Applications

 

Region 1:

Ankara, Antalya, Bursa, Eskişehir, Istanbul, Izmir, Kocaeli, Muğla, Tekirdağ

 

Region 2:

Aydın, Balıkesir, Bilecik, Bolu, Çanakkale (except Bozcaada and Gökçeada), Denizli, Edirne, Isparta, Karabük, Kayseri, Kırklareli, Konya, Manisa, Sakarya, Yalova

 

Region 3:

Adana, Burdur, Düzce, Gaziantep, Karaman, Kırıkkale, Kütahya, Mersin, Samsun, Trabzon, Rize, Uşak, Zonguldak

 

Region 4:

Afyonkarahisar, Aksaray, Amasya, Artvin, Bartın, Çorum, Elazığ, Erzincan, Hatay, Kastamonu, Kırşehir, Malatya, Nevşehir, Sivas

 

Region 5:

Bayburt, Çankırı, Erzurum, Giresun, Gümüşhane, Kahramanmaraş, Kilis, Niğde, Ordu, Osmaniye, Sinop, Tokat, Tunceli, Yozgat

 

Region 6:

Adıyaman, Ağrı, Ardahan, Batman, Bingöl, Bitlis, Diyarbakır, Hakkari, Iğdır, Kars, Mardin, Muş, Siirt, Şanlıurfa, Şırnak, Van, Bozcaada, Gökçeada