Your energy investment projects are covered by many incentive mechanisms, based on the Council of Ministers’ Decision No. 2012/3305 dated 15.06.2012 and the Regulation published in the Official Gazette No. 26510 dated 02.05.2017, which expanded the scope to include renewable energy use and energy efficiency investments.

In this article, we will outline the three main incentive systems applied for investments in solar power plants (SPP) and energy efficiency. Detailed articles on each incentive can be found in our SPP Investment Incentive Supports file.

 

Every Investment Has Its Own Characteristics

Reducing the burden of energy costs on your budget—or even turning into an additional production facility that generates revenue—while also benefiting from grants or incentive certificates, achieving up to 70% cost advantage, may sound like a dream. But it is not a dream—it is a system. Therefore, your investment must also be planned systematically and with a holistic view.

For example:

• Rooftop SPP investments over 240 kWe fall under the general incentive system regardless of region.

• In existing manufacturing facilities with a minimum annual energy consumption of 500 tons of oil equivalent (TOE), energy efficiency investments (such as roof insulation or modernization) that provide at least 15% savings are covered as priority investments.

• Rooftop SPP investments, depending on location and organizational structure, can also benefit from regional incentive systems.

In short, you should see your investment as a piece of a larger puzzle and plan accordingly.

 

Main Support Instruments

• VAT Exemption: No VAT is paid for machinery, equipment, software, or intangible rights purchased domestically or internationally within the scope of the incentive certificate.

• Customs Duty Exemption: No customs duty is paid for imported machinery and equipment within the scope of the incentive certificate.

• Tax Reduction: Income or corporate tax is applied at a reduced rate until the contribution amount foreseen for the investment is reached.

• Employer’s Social Security Premium Support: The employer’s share of the social security premium corresponding to the minimum wage for additional employment created by the investment is covered by the Ministry.

• Income Tax Withholding Support: Income tax withholding for additional employment is canceled. (Only for Region 6 investments and strategic investments supported under TOSHP.)

• Employee’s Social Security Premium Support: The employee’s share of the social security premium corresponding to the minimum wage is covered by the Ministry. (Only for Region 6 and strategic investments under TOSHP.)

• Interest or Profit Share Support: A portion of the interest or profit share of investment loans with at least one-year maturity, up to 70% of the fixed investment amount registered in the incentive certificate, is covered by the Ministry.

• Land Allocation: Land can be allocated for investments with an incentive certificate in accordance with procedures determined by the Ministry of Finance.

• VAT Refund: For strategic investments over 500 million TL, VAT collected for construction expenditures is refunded.

 

At Orbit Enerji, we plan your investment management to bring it to the most advantageous position, offering comprehensive consultancy and project management services.

 

Depending on the characteristics of your investment, we guide you to benefit from the most suitable incentive system. Please do not hesitate to contact our Orbit Grant and Investment Incentive Project Management Consultants for detailed consultation.