SECTOR-SPECIFIC SOLUTIONS · ENERGY & RENEWABLES
Incentive and financing
structure for energy investments.
Renewable energy, natural gas and energy efficiency investments are subject to different incentive mechanisms. Without building the right incentive structure at every stage — from licensing to production — the process cannot be completed.
Sector Profile
Turkey's energy transition offers a broad investment area ranging from renewable energy power plants to smart grid technologies, energy storage systems and efficiency software. These investments can be supported by STB incentive certificates, TÜBİTAK support programmes and financial structuring instruments. However, licensing stage, capacity size and technology type directly affect incentive status; it is therefore essential to structure incentives before making the investment decision.
Incentive Applicability Table
| Investment Type | Incentive Route | Priority |
|---|---|---|
| Solar / Wind power plant | STB Regional Investment Incentive | High |
| Energy storage technology | STB Strategic + TÜBİTAK 1501 | High |
| Energy efficiency equipment R&D | 5746 R&D Centre or TÜBİTAK 1507 | Medium |
| Hydroelectric power plant | STB Large-Scale Investment Incentive | Medium |
| Smart grid software | TÜBİTAK 1511 or Design Centre | Medium |
Key Legal References
Decision on State Aids in Investments
Regional and Large-Scale Incentive statuses, energy sector applications
Law on the Use of Renewable Energy Resources for the Purpose of Generating Electrical Energy
Licensing and connection processes, integration with incentive certificate
Energy Efficiency Law
Support mechanisms and R&D scope in energy efficiency projects
Incentive Profile
Energy Sector Quick Reference
Applicable Services
Services and supports
used in this sector.
STB
Regional Investment Incentive
The majority of solar and wind power plants fall under Regional Incentive. Location and capacity size directly determine the incentive rate.
STB
Large-Scale Investment Incentive
Hydroelectric and large-capacity energy investments qualify for Large-Scale status under specific sector lists and minimum investment amounts. Tax reduction rates reach the highest values.
TÜBİTAK
1501 Industrial R&D Support
R&D projects in energy storage, smart grid and efficiency technologies can benefit from grant support under programme 1501.
FINANCIAL ADVISORY
Tax Advisory
VAT refund, investment contribution tracking and post-completion visa tax reduction application in energy investments are processes that require correct structuring.
FINANCIAL ADVISORY
Accounting & Financial Reporting
In energy companies, accounting for investment-period expenditures, tracking incentive-covered spending and periodic reporting require regular expertise.
FINANCIAL ADVISORY
Company Formation & Structuring
In energy investments, the project company (SPV) and investment company structure directly affects incentive eligibility. The investment structure decision must be correctly built before applying for incentives.
Process Management
How does the incentive process
work in energy investment?
From licence application to production stage, from incentive certificate follow-up to completion visa — we manage every step together.
Investment Profile & Licence Status Assessment
The energy source, installed capacity target and current licence stage are examined. Pre-licence, licence or licence-exempt installation status directly determines the timing of the incentive application.
Region & Capacity Analysis
The plant location and incentive region calculation are carried out. The impact of OIZ-inside vs. OIZ-outside location on support rates is analysed, and incentive values for alternative locations are compared.
Incentive Type & Investment Amount Optimisation
Regional, Large-Scale and Strategic status comparison is performed. If an R&D component exists, it is planned together with TÜBİTAK programme. Investment amount and scope are configured to maximise incentive value.
Ministry Application & Follow-Up
The incentive certificate application is prepared and followed up during the Ministry process. Necessary corrections and additional information requests are addressed on time. Once the certificate is obtained, the incentive schedule is monitored.
Production Stage Monitoring & Reporting
Completion visa procedures, initiation of tax reduction application and VAT refund follow-up are managed. Extension needs for the incentive certificate are identified in advance to prevent disruptions.
Frequently Asked Questions
Common questions about
energy investments.
Which STB incentive type does a solar power plant investment fall under?
Solar power plants may be assessed under General, Regional or Large-Scale Incentive depending on investment amount and location region. Minimum investment amount and sector list eligibility are verified first. Regional Incentive is the most commonly applied status; location selection is of strategic importance at this stage.
Can energy storage investments qualify for strategic incentive?
Yes. Energy storage technologies may meet Strategic Investment Incentive criteria since Turkey's import dependency in this field continues. A minimum investment of TRY 50 million and documentation of import dependency rate are the basic conditions for application. Since this status offers the most comprehensive support package, it is recommended to evaluate it first for large-scale storage projects.
Can investment incentive and R&D support be used at the same time?
Yes, it is possible. The physical investment component (power plant, manufacturing facility) can be supported by STB certificate, and the technology development component separately by TÜBİTAK programme. However, submitting the same expenditure item to both mechanisms simultaneously is prohibited. If expense segregation is not structured correctly from the outset, audit risk arises.
What happens if the deadline in the investment incentive certificate is not met?
If the investment completion deadline in the certificate is exceeded, an extension application must be made. If this application is not made before the deadline expires, the certificate risks cancellation and the supports benefited from may need to be repaid. Extension applications are common in energy investments due to delays in construction and connection processes; monitoring is therefore critical.
How does region selection affect the incentive rate for an energy power plant?
Location selection for energy plants must be evaluated both in terms of solar/wind potential and incentive region. Tax reduction rate and SGK support duration reach the highest values in regions 5 and 6. Projects within OIZs benefit from one-region-higher support. In provinces with high solar potential but low incentive regions, a net calculation of both factors is required.
energy investment analysis
Let us map the incentive and financing landscape for your project.
A region-based incentive comparison is carried out using your energy source, installed capacity and location.
Request a MeetingRELATED SERVICES
Advisory services we provide in this sector
STB · Investment Incentive
STB Investment Incentive Applications
Regional, strategic and large-scale investment incentive certificate preparation; correct status selection in energy investments.
5746 · R&D Centre
R&D Centre Incentives
Energy technology R&D centre establishment, accreditation and process management. 150% R&D deduction and SGK support.
International · Investment
New Investment Incentive System
Incentive structuring for foreign-capital energy investments and Presidency Investment Office coordination.
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Let us build the right incentive structure
for your energy investment.
We manage every step together from licence stage to completion visa.