Investing in Solar Power in Turkey: Complete Guide 2026
Turkey offers one of the world's most compelling solar investment environments: exceptional irradiance, rapidly rising electricity prices, government support through YEKDEM, and a growing corporate sustainability imperative. This guide covers everything investors need to know about entering the Turkish solar market in 2026.
Why Turkey for Solar Investment?
- Solar resource: 1,300–1,700 kWh/m²/year — among Europe's highest
- Electricity prices: ₺3.50–₺4.20/kWh and rising — solar self-consumption economics are outstanding
- YEKDEM: $0.133/kWh USD feed-in tariff for 10 years on licensed plants
- Market size: 85 million people, rapidly growing energy demand
- Political will: 60 GW solar target by 2035 with strong government support
- Returns: IRR of 15–22% on well-structured projects
Investment Structures
1. Residential Net Metering (Smallest Scale)
Buy a residential property in Turkey and install solar. Surplus electricity offsets your utility bill. No licence required up to 1 MW. Payback 3–5 years. Not a standalone investment vehicle but excellent return when combined with real estate purchase.
2. Commercial Rooftop (Medium Scale)
Install on your business or lease rooftop space from a commercial property owner. Systems up to 1 MW operate under the unlicensed scheme. Electricity savings fund the investment. IRR 25–35% for factory/hotel owners. For investors leasing rooftop space, returns depend on negotiated power purchase agreement (PPA) terms.
3. Ground-Mount Licensed Plant (Large Scale)
The primary investment vehicle for dedicated solar investors. Requirements: Turkish company, EPDK preliminary licence, TEDAŞ grid connection offer, land rights. Revenue: YEKDEM $0.133/kWh for 10 years + market rates thereafter. Typical project size: 1–10 MW. Minimum investment: approximately $500,000 for 500 kWp.
Financial Model — 1 MWp Plant Example
| Parameter | Value |
|---|---|
| Capacity | 1,000 kWp (1 MWp) |
| Annual Yield (SAT) | 1,950,000 kWh |
| YEKDEM Revenue | $259,350 / year (₺8.3M) |
| O&M Cost | ~₺500,000 / year |
| Net Annual Cash Flow | ~₺7.8M / year |
| Total Investment | ~₺13M (EPC all-in) |
| Simple Payback | 1.7 years |
| Project IRR (20yr) | ~22% |
Legal & Regulatory Requirements
- Turkish company required for EPDK licence (LTD ŞTİ or A.Ş.) — foreign ownership permitted
- EPDK preliminary licence application (3–6 months)
- TEDAŞ grid connection offer (mandatory before EPDK licence)
- Environmental impact assessment for plants >10 MW
- Building permit for civil works
- Land rights: ownership or long-term lease (minimum 25 years)
- YEKDEM application and contract with EPDK
Risks and Mitigations
- Lira depreciation: Mitigated by YEKDEM's USD tariff and USD-denominated equipment costs
- Grid curtailment: Some regions experience curtailment — site selection and pre-application grid studies mitigate this
- YEKDEM availability: New YEKDEM contracts are issued periodically — current pipeline is available
- Permit delays: EPDK licensing can take longer than expected — we manage this process actively
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