The rate of population growth across the globe is increasing every year and the pace of urbanization and industrialization is accelerating. While this has a positive impact on global economic growth, it also increases the need for resources and energy. As always, production is accompanied by consumption, and the imbalance between the two threatens to reduce production. Although the lack of resources has led mankind to turn to fossil resources, in the face of the endless cycle of need, these have not been more than a temporary solution and have led to the destruction of nature, especially global warming and environmental pollution. For these reasons, mankind has sought solutions to meet its own needs and discovered renewable energy thanks to nature itself. Renewable energy has been at the forefront of many projects, especially in recent years, because it is safe, continuous, environmentally friendly and cost-controllable. When the development in Turkey is examined; its use has become widespread and some of them are solar energy, wave energy, wind energy, geothermal energy, hydraulic energy, biomass energy, hydrogen energy. For this reason, support mechanisms have been initiated by the state to promote and encourage the use of renewable energy in our country. To take a look at the incentive projects implemented in our country;

  • Fixed price guarantee (FIT): A feed-in tariff scheme with a fixed price guarantee is introduced for each renewable energy source.
  • Unlicensed Production Right: It has been decided that they will be exempt from company obligation and from obtaining a license.
  • Incentives to Encourage New Investments: 4 different incentive programs have been prepared to be effective as of 01.01.2012.
  • General incentive practices: VAT exemption and Customs Duty Exemption are provided for investments that meet the minimum investment amount, even if they fall outside the scope of incentives.
  • Regional incentive schemes: A minimum investment amount is set for each investment, the minimum investment amounts are TL 1 million for Regions 1 and 2, TL 500,000 for Regions 3, 4, 5 and 6, and an additional 38% labor cost discount is applied in Region 6. In addition, VAT exemption, Customs duty exemption, Tax Reduction and Land Allocation supports are provided.
  • Large Scale Investment Incentive: Various aids are provided for R&D and technology. These include VAT exemption, customs duty exemption, tax reduction and land allocation.
  • Strategic Investment Incentive: VAT exemption, Customs duty exemption, Tax Reduction and Land Allocation supports are provided when the minimum fixed investment amount is 50 million to increase domestic production capacity.

Although the supports in the renewable energy sector are generally as we have explained, in some cases they appear with different names and projects. To mention them briefly;

  • Efficiency Improvement Project (EIP) Support: Investments in this sector are generally supported by the Ministry of Energy and assistance is provided in the form of equipment and system use, repair, insulation, modification, rehabilitation and organization of these processes. The amount of support provided to the investor here is 30% of the project value.
  • Voluntary Agreement Supports: An agreement is made with the Ministry of Energy with a commitment to reduce energy intensity by 10% for 3 years. The support provided to the investor here amounts to 1.000.000 TL.
  • Investment Incentive System - 5th (Fifth) Region Incentives: In this context, VAT exemption, customs exemption, corporate tax reduction, social security employer share support, interest support, land - investment location allocation support is provided. The projects listed below can benefit from incentives if they meet the necessary conditions.
  • Efficiency Improvement Projects (EIP): projects that will provide 15% energy savings in manufacturing industry facilities with a minimum energy consumption of 500 tons of oil equivalent for one year
  • Waste Heat Recycling Investment: projects that generate electricity from waste heat
  • Investment in Turbine, Generator and Blade Manufacturing Used in Wind Generation: projects using turbine and generator manufacturing and wind energy in blade manufacturing
  • Thermal Power Plant Investment with Investment Incentive Certificate: Thermal power plant projects within the scope of the certificate
  • Incentives under the General Investment Incentive System: Equipment and machinery support, VAT and customs exemption are provided to projects that have an investment incentive certificate and meet the minimum investment amount
  • Solar Energy Solar Energy Investment Incentive Certificate and Wind Energy RES Investment Incentive Certificate: 4th Region incentives and corporate tax, SSI, VAT and Customs Tax supports are provided for solar and wind energy projects. In addition, a 50% grant opportunity is provided if other conditions are met.
  • Other Institutions and Organizations Providing Incentives and Credits in the Field of Energy Efficiency: New Environmental Supports of the Turkish Technology Development Foundation (TTGV) and World Bank Supports are in question.

Apart from the support and incentive programs listed; In response to the rapid increase in investments in the renewable energy sector, various organizations are developing different support projects. Some of these are;

  • T.R. Small and Medium Enterprises Development and Support Administration KOSGEP renewable energy and energy efficiency supports: provides non-refundable support to investors, especially in terms of expenses.
  • Rural Development Investments Support Program: provides support in the amount of half of the project cost, with a maximum of 1,500,000 TL.
  • Türkiye Technology Development Foundation: It is a support program with a lower limit of 100,000 USD and an upper limit of 1,000,000 USD.
  • Türkiye Sustainable Energy Financing Program: Provides support to producers and beneficiaries per investment with a maximum of € 5 million and € 15 million.
  • IPARD Program: provides 50% support for projects with an investment value of 1,500,000 TL.