The climate crisis, rising energy costs, and the problem of external dependency have made renewable energy sources not only an environmental choice for Türkiye, but also an economic, strategic, and legal necessity. Renewable energy sources such as solar, wind, geothermal, and biomass now provide significant efficiency and cost advantages for both individual users and industrial organizations.
In this transformation process, the state has developed comprehensive support mechanisms that encourage renewable energy investments, offering major financial and tax advantages, especially for producing facilities, factories, and businesses that make energy investments. The legal basis of these supports is regulated primarily by Law No. 6446 (Electricity Market Law) and Law No. 5346 (Law on the Use of Renewable Energy Sources for the Purpose of Generating Electrical Energy), along with relevant secondary legislation.
From Nature-Friendly Production to Economic Advantage Under Legal Protection
The Legal Framework of Renewable Energy Policies in Türkiye
Türkiye’s energy policy has been reshaped in recent years around sustainability. In line with the goals of ensuring security of energy supply, reducing carbon emissions, and increasing the use of domestic resources, renewable energy investments have been designated as a priority area.
One of the main objectives of Law No. 6446 (Electricity Market Law) is to ensure that electricity is generated in an environmentally compatible manner and to enable the market to operate in a reliable, competitive, and transparent structure. Within this scope, special regulations have been introduced for generation facilities based on renewable energy sources.
At the point reached today:
- The share of renewables in electricity generation increases every year.
- In terms of installed capacity in solar and wind energy, Türkiye ranks among the leading countries in Europe.
- Unlicensed generation models that enable industrial facilities to produce their own energy are becoming more widespread.
- Renewable energy is no longer only the preference of environmentally conscious individuals; it is an investment area with a clarified legal infrastructure and strengthened through incentives.
Legal Basis of State Incentives for Facilities That Use and Produce Renewable Energy
The incentives provided by the state create a serious financial advantage, especially for factories and investors operating in the renewable energy field. The primary legal basis for these incentives is Decision No. 2012/3305 on State Aids for Investments and the Implementation Communiqués related to this Decision.
Within the scope of an Investment Incentive Certificate, the following support elements are предусмотрено for renewable energy investments:
- Value Added Tax (VAT) exemption,
- Customs duty exemption,
- Tax reduction,
- Employer’s share of social security premium support.
These incentives significantly reduce both investment and operating costs for the production or use of equipment such as solar panels, wind turbines, inverters, and similar components.
In addition, under regional incentive schemes, support rates vary depending on the incentive zone of the province where the investment is made; renewable energy investments in priority development regions become particularly more advantageous.
YEKDEM (Renewable Energy Resources Support Mechanism) and Purchase Guarantee
One of the most frequently asked topics in renewable energy investments is the YEKDEM scheme. Established under Law No. 5346, this mechanism aims to support electricity generated from renewable energy sources for certain periods and under specified conditions.
Within YEKDEM:
- A purchase guarantee is provided for electricity generated from renewable sources.
- Additional support is granted to facilities that use domestically produced components.
This system is highly important for investors because it provides legal predictability. 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
For industrial facilities, using renewable energy is important not only as a cost advantage but also in terms of 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.
Rooftop or ground-mounted solar energy systems established under unlicensed electricity generation allow industrial facilities to produce their own energy. This:
- Reduces electricity expenses,
- Increases security of energy supply,
- Lowers the carbon footprint,
- Facilitates compliance with Green Deal and sustainability criteria.
The Importance of Legal Processes in Renewable Energy Investments
Renewable energy investments are tightly linked not only to technical aspects but also to administrative and legal processes. Licensed or unlicensed generation procedures, connection agreements, incentive applications, and administrative permits must be carried out in accordance with energy legislation.
In particular, obtaining incentive certificates, application processes for YEKDEM, and completing the investment in compliance with incentive conditions are critically important. Otherwise, granted supports may be reclaimed or administrative sanctions may apply.
For this reason, managing energy investments with legal consultancy from the initial stage plays a crucial role in investment security.
Frequently Asked Questions (FAQ)
Here you can find answers to the most frequently asked questions regarding renewable energy investments and the state incentive process.
Can everyone who invests in renewable energy benefit from state incentives?
To benefit from incentives, the investment must comply with the relevant legislation and the necessary administrative permits must be obtained.
If I install a solar energy system for my factory, can I receive incentives?
Yes. Tax and investment incentives are possible for systems established under unlicensed generation.
How long is the YEKDEM purchase guarantee period?
Purchase guarantee periods are determined according to the applicable legislation and may vary depending on the type of source.
Can support be obtained later for an investment made without an incentive certificate?
As a rule, the incentive certificate must be obtained before the investment. Subsequent applications are not accepted in most cases.
Why is legal consultancy important in renewable energy investments?
Legal support is essential to avoid losing incentives, prevent administrative sanctions, and ensure the investment is maintained securely.
Conclusion
Renewable energy is not merely an environmental preference for Türkiye; it is an investment area supported by laws, strengthened by incentive mechanisms, and backed by a clarified legal infrastructure. The incentives provided by the state offer significant opportunities for industrial organizations and investors operating in this field.
However, turning these opportunities into sustainable and secure advantages depends on acting in compliance with energy law regulations. Proper implementation of incentives, complete execution of licensing processes, and timely fulfillment of administrative obligations are critically important.
As Azel Law and Consultancy, we provide our clients with comprehensive legal support in renewable energy investments, energy law, and state incentives, and we contribute to the realization of nature-friendly and sustainable investments on a solid legal foundation.
Attribution / Source Note: This rewritten text is based on an original article written by Azel Law and Consultancy. For more information and professional support on renewable energy investments, energy law, and state incentives, readers can visit Azel Law and Consultancy’s website.
