Land-Type Solar Power Plant Investment (Ground-Mounted PV Systems)

Home Page Orbit Academy Land-Type Solar Power Plant Investment (Ground-Mounted PV Systems)

Land-Type Solar Power Plant Investment (Ground-Mounted PV Systems)

 

With the recent rise in energy costs both in Turkey and around the world, many business owners and industrial enterprises have begun searching for new ways to invest in solar energy systems (GES).

To support this transition, Turkey has been introducing new regulations and incentives to encourage and simplify renewable energy investments.

 

In the past, solar investments were limited to rooftop installations, under the principle of “generate where you consume.”

Later, regulations evolved — if the rooftop area was insufficient, you could install your system on a nearby piece of land within the same consumption point, provided that it complied with utility connection standards.

 

Now, the framework has advanced even further:

If you are within the same distribution region, but your consumption site has no available installation area, you are now permitted to generate energy from another property and associate it with your distant consumption point.

 

The state will even purchase your surplus energy, at the same rate it sells electricity to you. However, since the state incurs a transmission cost to deliver that energy to others, it charges a transmission fee of 0.29 TL/kWh for all electricity transmitted through the grid — identical to the tariff applied to unlicensed producers.

 

 

Example of a Land-Type GES Investment

 

Let’s assume a hotel or hospital with high annual energy consumption. Its tariff is categorized under “commercial” (recently renamed as Public or Private Sector Operators).

Suppose this facility has:

  • A 1 MVA transformer
  • 600 kVA contracted power
  • Annual electricity consumption of 1,250,000 kWh

 

To meet this demand, it would need to install a minimum 1 MVA solar power plant.

However, such a system would require roughly 10,000 m² of unobstructed rooftop area — which most hotels lack.

 

Instead, the investor can establish a 1 MVA land-type solar plant (Arazi GES) within the same distribution region.

Before installation, the contracted power must be increased to 1 MVA, since the total AC capacity of the solar plant must match the consumption point’s contracted power.

 

If this were an industrial facility under the industrial tariff, it would be allowed to install a plant up to twice its contracted power, meaning it could go up to 1,200 kVA in this scenario.

 

 

Who Can Invest in a Land-Type GES?

Not everyone.

To invest in a land-based solar power system, you must either:

  • Hold a generation license, or
  • Be the owner of a consumption facility associated with the system.

 

If you simply own land and wish to build a solar power plant on it, you must also own a consumption point, or you must purchase a generation license from the state when new licensing rounds open.

 

 

Payback Period of Land-Based GES Investments

 

Let’s assume an average investment cost of 900 USD/kWp and an annual production rate of 1,500 kWh per kWp.

Electricity can be sold or net-metered under the industrial tariff, but both directions (buying and selling) incur the transmission fee applied to unlicensed producers — approximately 0.02 USD/kWh (or 28.76 kuruş).

 

If the sales price is 2.48 TL/kWh (around 0.14 USD/kWh), the net income becomes 0.12 USD/kWh.

 

So, for 1 kWp:

Annual income = 1,500 kWh × 0.12 USD = 180 USD/year

Investment return = 900 / 180 = 5 years ROI (Return on Investment)

 

Fluctuations in exchange rates, interest rates, or borrowing models may shift this by ±10%.

 

 

Key Considerations for Investors (by Orbit Energy A.Ş.)

 

When evaluating return-on-investment periods, please keep in mind:

  • Energy is a global, dollar-indexed market, and prices may rise or fall based on global supply-demand balance.
  • For long-term investments, manage borrowing carefully — ideally split your financing 50% local currency (TRY) and 50% USD to hedge against risk.
  • Aim to finance at least 20% of the investment with your own equity capital.

 

The EPDK (Energy Market Regulatory Authority) tariff schedule can be found below.

 

EPDK Tarafından Onaylanan ve 1 Temmuz 2022 Tarihinden İtibaren Uygulanacak Faaliyet Bazlı Tarifeler

1/7/2022

Faaliyet Bazlı Tüketici Tarifeleri (kr/kWh)

Dağıtım Sistemi Kullanıcıları

Perakende Tek Zamanlı Enerji Bedeli

Perakende Gündüz Enerji Bedeli

Perakende Puant Enerji Bedeli

Perakende Gece Enerji Bedeli

Dağıtım Bedeli

Orta Gerilim

Çift Terimli

Sanayi

248,3714

251,3801

395,2221

135,2853

14,7972

Kamu ve Özel Hizmetler Sektörü ile Diğer (TİCARETHANE)

230,2455

232,5236

363,0085

128,7021

23,0611

Mesken

152,9207

155,4131

246,1925

82,8186

22,8419

Tarımsal Faaliyetler

157,6777

159,2914

251,4048

85,6839

18,9925

Aydınlatma

212,2218

 

 

 

22,1336

Tek Terimli

Sanayi

256,6870

259,8001

408,5735

139,7250

16,3448

Kamu ve Özel Hizmetler Sektörü ile Diğer

235,0787

237,3568

367,8417

133,5347

28,7660

Mesken

154,5685

157,0611

247,8392

84,4656

28,2039

Tarımsal Faaliyetler

159,7360

161,3497

253,4633

87,7413

23,6477

Aydınlatma

216,7131

 

 

 

27,6100

Alçak Gerilim

Tek Terimli

Sanayi

262,2851

265,2400

406,5304

151,2050

25,2888

Kamu ve Özel Hizmetler Sektörü ile Diğer (30 kWh/gün ve altı)

174,6438

246,0159

376,5007

142,1943

34,2716

Kamu ve Özel Hizmetler Sektörü ile Diğer (30 kWh/gün üstü)

243,7383

246,0159

376,5007

142,1943

34,2716

Mesken (8 kWh/gün ve altı)

95,5452

161,7720

252,5509

89,1764

33,5187

Mesken (8 kWh/gün üstü)

159,2790

161,7720

252,5509

89,1764

33,5187

Şehit Aileleri ve Muharip Malul Gaziler

38,7776

 

 

 

22,7335

Tarımsal Faaliyetler

164,3828

168,6088

258,1106

92,3882

28,1603

Aydınlatma

224,9134

 

 

 

32,8247

Genel Aydınlatma

262,0928

 

 

 

32,8247

 

 

The information provided above is valid up to August 2022. Future updates or regulatory changes may alter some of these details. While certain data may remain current, regulations and unit prices are subject to change over time.

 

For the most up-to-date information, please contact us through the forms available on our website www.orbitenerji.com or reach us by phone or email.

 

 

Yardım İkonu