Turkey - Taxes and Incentives for renewable energy

Turkey taxes and incentives for renewable energy KPMG Global Energy & Natural Resources.

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Support schemes

Investments and other subsidies

The General Investment Incentive Regime changed in June 2012. The new incentive regime is applicable to ENR investments, mainly by providing the following:

  • VAT exemption on purchase (or import) of investment equipment
  • customs duty exemption on import of investment equipment
  • exemption from other funds and surcharges.

Other subsidies

The new Electricity Market Law 6446 became effective as of 30 March 2013. The incentives provided under this law apply to investors holding a generation license and who start operating before 31 December 2015:

  • A 50 percent discount is applied to the transmission system utilization fee for 5 years following the start of operations.
  • Documents and transactions related to the power plants and concluded throughout the investment period are exempted from stamp tax and duties.

Operating subsidies

Feed-in tariff

The tariff and the government purchase guarantee are applied for 10 years following the start of operations of a generation power plant until 31 December 2015.  


  • Hydro: USD cent (ct)7.3kWh  
  • Wind: ct7.3/kWh 
  • Geothermal: ct10.5/kWh 
  • Solar: ct13.3/kWh 
  • Biomass (including landfill): ct13.3/kWh

Discount on fees

The new Electricity Market Law 6446 has become effective as of 30 March 2013. Under this law, an 85 percent discount is applied to the lease, easement and utilization right of energy transfer lines for 10 years in both investment and operating periods to the power plants that are in operation or to be in operation until 31 December 2020.

Additional information

  • If the mechanical and electromechanical equipment used in renewable energy facilities that have started operation before 31 December 2015 are manufactured in Turkey, an additional incentive of between ct0.4 and ct3.5/kWh for 5 years will be provided to such facilities, under certain conditions.
  • Renewable energy-based electricity power plants with an installed capacity of maximum 1 MWe and other similar investments are allowed to operate without a generation license.

Taxes and Incentives for renewable energy

A 2015 KPMG report that provides updates on renewable energy promotion policies for over 31 countries.

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