Turkey introduces 10-year FIT for solar, other renewables


The Turkish government has issued new feed-in tariffs (FITs) for solar PV and other types of renewable energy.

With Decree n. 7189, published this week in the official gazette, the Turkish authorities have set a 10-year FIT of TRY 1.06/kWh for PV systems that installed between July 1, 2021, and Dec. 31, 2030. In addition, solar projects that use PV components produced in Turkey will receive an extra 5-year tariff of TRY0.2880 ($0.015)/kWh.

The government also set a 10-year FIT of TRY 1.25 for wind and solar projects that include battery storage, with an added bonus of TRY 0.3845/kWh for domestic content, lasting for 10 years. The FITs for onshore and offshore wind were set at TRY 1.06/kWh and TRY 1.44/kWh, respectively. For other renewable energy sources, including pumped hydro, geothermal power, biomass, and wave energy, the FITs range from TRY 1.06/kWh to TRY 2.02/kWh.

The government plans to subject all the FITs to a quarterly escalation mechanism based on the producer price index, consumer price index, US dollar purchase rates, and Euro purchase rates. According to Eren Engur, a board member for Turkish PV association Günder, the Turkish energy authority, EMRA, hopes to allocate around 20 GW of new PV capacity by 2030 through this scheme. The government has not yet disclosed whether there will be a size limit for PV installations eligible for the incentive scheme.

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Turkey has previously supported large-scale solar projects via a YEKA PV tender scheme and an incentive program for unlicensed PV plants under 1 MW. However, the Turkish PV market is currently being driven by self-consumption and net-metered rooftop PV. Since net metering was introduced in May 2020, the market has started to shift away from megawatt-sized projects, which have traditionally dominated.

The Solar Energy Roadmap report, published by the Turkish PV association in 2019, predicted that the nation could install 38 GW of solar by 2030. A separate study, published by the Istanbul-based Shura Energy Transition Center in May 2018, had predicted solar could pass 20 GW by 2026.

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