Turkish authorities have set a 10-year feed-in tariff (FIT) of TRY 1.06 ($0.0545)/kWh for solar PV systems installed between 1 July 2021 and 31 December 2030. Solar energy projects using Turkish solar components will have a five-year additional tariff of 0.2880 TRY/kWh.
In Decree No. 7189, published this week in the Official Gazette, the Turkish authorities have set a 10-year FIT of TRY 1.06/kWh for solar PV systems installed between July 1, 2021 and December 31, 2030. In addition, solar projects using solar components manufactured in Turkey will receive a 5-year additional tariff of TRY 0.2880 ($0.015)/kWh.
The government also set a 10-year FIT of TRY 1.25 for wind and solar projects that include battery storage, and an Additional Bonus of TRY 0.3845/kWh for domestic content lasting 10 years. The price of onshore and offshore wind power was 1.06 TRY/kWh and 1.44 TRY/kWh. Other renewable energy sources, including pumped water, geothermal power, biomass and wave energy, have FIT values ranging from 1.06 TRY/kWh to 2.02 TRY/kWh.
The government plans to target all FITs to a quarterly escalation mechanism based on the producer price index, consumer price index, US dollar buying rates and euro buying rates. According to Eren Engur, board member of the Solar Electricity Association of Turkey, Günder, Turkey’s energy authority EMRA plans to allocate around 20 GW of new solar power capacity by 2030 through this system. The government has not yet revealed whether there will be a size limit for solar power plants eligible for the incentive system.
Turkey has previously supported large solar projects through YEKA’s solar tender program and the incentive program for unlicensed solar plants under 1 MW. However, the solar electricity market in Turkey is currently driven by self-consumption and net metered rooftop electricity. After the introduction of net metering in May 2020, the market has started to move away from the traditionally dominant megawatt-sized projects.
The Roadmap for solar energy The country could install 38 GW of solar power by 2030, according to a 2019 report by the Solar Electricity Association of Turkey. A separate study published in May 2018 by the Istanbul-based Shura Energy Transition Center had predicted that solar power would exceed 20 GW by 2026.