The climate crisis, the rise in energy costs, and the problem of foreign dependency have made renewable energy sources not only an environmental but also an economic, strategic, and legal necessity for Turkey. Renewable energy sources such as solar, wind, geothermal, and biomass provide significant efficiency and cost advantages today for both individual users and industrial organisations.
During this transition process, the state has developed comprehensive support mechanisms that encourage renewable energy investments, and has offered significant financial and tax advantages, particularly for manufacturing plants, factories and enterprises undertaking energy investments. The legal basis of these supports is primarily Electricity Market Law No. 6446 ve Law No. 5346 on the Utilisation of Renewable Energy Sources for the Purpose of Generating Electrical Energy is regulated in the relevant secondary legislation, including.
The Path from Eco-Friendly Production to Economic Advantage Under Legal Protection
The Legal Framework of Renewable Energy Policies in Turkey
Turkey’s energy policy has been reshaped in recent years around the axis of sustainability. In line with the objectives of ensuring energy supply security, reducing carbon emissions and increasing the use of domestic resources, renewable energy investments have been designated as a priority area.
One of the primary objectives of Electricity Market Law No. 6446 is to ensure that electrical energy is generated in an environmentally compatible manner and to guarantee that the market operates in a reliable, competitive and transparent structure. In this context, special regulations have been envisaged for generation facilities based on renewable energy sources.
Where things stand today:
- The share of renewable sources in electricity generation is increasing every year.
- In terms of installed capacity in solar and wind energy, Turkey ranks among the top countries in Europe.
- Unlicensed generation models that enable industrial facilities to generate their own energy are becoming widespread.
Renewable energy is no longer just the choice of environmentally conscious individuals; it is an investment field with a clarified legal framework and supported by incentives.
Legal Basis of Government Incentives for Facilities That Use and Generate Renewable Energy
State-provided incentives create a significant financial advantage, particularly for factories and investors operating in the field of renewable energy. The primary legal basis for these incentives is Decision No 2012/3305 on State Aid for Investments and the Implementing Communiqués related to this Decision.
Within the scope of the Investment Incentive Certificate, for renewable energy investments:
- Value Added Tax exemption,
- Customs duty exemption,
- Tax cut,
- employer's share of insurance premium support
such support elements are envisaged.
These incentives significantly reduce both investment and operating costs relating to the production or use of solar panels, wind turbines, inverters and similar equipment.
Furthermore, within the scope of regional incentive practices, support rates vary depending on the incentive region of the province where the investment is made, and renewable energy investments made particularly in priority regions for development become more advantageous.
RESM (Renewable Energy Resources Support Mechanism) and Feed-in Tariff
One of the most frequently asked questions regarding renewable energy investments is the RESM (Renewable Energy Support Mechanism) practice. Established pursuant to Law No. 5346, this mechanism aims to support electricity generated from renewable energy sources for certain periods and under specified conditions.
Under the RESM:
- A purchase guarantee is provided for electricity generated from renewable sources,
- Additional support is provided to facilities that use domestic components.
This system is of great importance in terms of providing legal predictability for investors. Thanks to the purchase guarantee, revenue projections can be made, and financing and credit processes can be carried out more securely.
Legal and Economic Advantages of Renewable Energy Use for Industrial Facilities
The use of renewable energy for industrial facilities is important not only in terms of cost advantages, but also for compliance with environmental legislation. Especially when considering the Environmental Law, emission regulations and international sustainability criteria, businesses that use clean energy gain a significant compliance advantage.
Roof-mounted or ground-mounted solar energy systems installed within the scope of unlicensed electricity generation offer industrial facilities the opportunity to produce their own energy. This situation:
- In reducing electricity expenses,
- enhancing energy supply security,
- In reducing the carbon footprint,
- It facilitates compliance with the Green Deal and sustainability criteria.
The Importance of Legal Processes in Renewable Energy Investments
Renewable energy investments are strictly dependent on administrative and legal processes as much as technical ones. Licensed or unlicensed generation processes, connection agreements, incentive applications and administrative permits must be carried out in compliance with energy legislation.
In particular, obtaining incentive certificates, the application processes for YEKDEM, and completing the investment in compliance with the incentive conditions are of great importance. Otherwise, the support provided may be reclaimed or administrative sanctions may apply.
Therefore, carrying out energy investments with legal consultancy from the initial stage plays a critical role in terms of investment security.
Frequently Asked Questions (FAQ)
Here you can find the answers to the most frequently asked questions regarding the renewable energy investments and state incentives process. If you cannot find the answer you are looking for, for detailed information and support you can get in touch with us.
Can anyone who invests in renewable energy benefit from state incentives?
To benefit from the incentives, the investment must comply with the relevant legislation and the necessary administrative permits must be obtained.
Can I get a grant if I install a solar energy system for my factory?
Yes. Tax and investment incentives are possible for systems established within the scope of unlicensed production.
What is the duration of the YEKDEM purchase guarantee?
Purchase guarantee periods are determined in accordance with current legislation and may vary depending on the resource type.
Can support be received later for an investment made without an incentive certificate?
As a rule, an incentive certificate must be obtained prior to investment. Subsequent applications are accepted in most cases.
Why is legal consultancy important in renewable energy investments?
Legal support is essential to prevent the loss of incentives, avoid administrative penalties and ensure the investment continues securely.
Result
Renewable energy is not merely an environmental choice for Turkey; it is an investment field supported by laws, strengthened by incentive mechanisms, and with a clarified legal infrastructure. Incentives provided by the state offer significant opportunities for industrial organisations and investors operating in this sector.
However, for these opportunities to transform into a sustainable and secure advantage, to energy law legislation it depends on acting appropriately. The correct implementation of incentives, the flawless execution of licensing processes, and the timely fulfilment of administrative obligations are of great importance.
As Azel Law and Consultancy, renewable energy investments, energy law and offering comprehensive legal support to our clients in the field of state incentives, we contribute to the realisation of eco-friendly and sustainable investments on a sound legal basis.
