Turkey Solar Energy Market By Technology (Photovoltaic Systems, Concentrated Solar Power Systems), By Solar Module (Monocrystalline, Polycrystalline, Cadmium Telluride, Amorphous Silicon Cells, and Others), By Application (Residential, Commercial, and Industrial), By End-Use (Electricity Generation, Lighting, Heating, and Charging), By Region, Competition, Forecast, and Opportunities, 2028F

The country plans to generate two-thirds of its electricity from local and renewable resources by the end of 2023.

Turkish government has committed to double the capacity of installed solar and wind power by 2027 and to invest around USD 110 billion in the energy sector

Solar energy is energy that is yielded by the sun and exploited using a range of technologies, including solar panels, solar thermal energy, and solar design. It is a clean renewable energy resource and has the prospect to provide energy for an ample range of applications, including water warming, electricity production, and space heating and cooling.

Shifting Electricity Sector Toward Sustainability

Energy is the key driver of wealth and social life. Nevertheless, energy creation-related environmental problems owing to fossil-fuel use direct humankind toward renewable energy resources. Having an increasing population and a developing economy, Turkey has the highest increase rate in electricity demand (6-7% annually) among all organizations for Economic Co-operation and Development countries and imports 74% of resources to meet its primary energy demand. In 2019, 56% of electricity was generated from fossil resources, mostly from imported hard coal and natural gas.

Moreover, Under the United Nations Framework Convention on Climate Change and the 2015 United Nations Climate Change Conference, Turkey has committed to a 21% greenhouse gas (GHG) emission reduction by 2030 which corresponds to 246 million tons of CO2 equivalents. To achieve this commitment, Turkey aims to increase its solar capacity to 10 GW and to reduce transmission losses to 15% in the electricity sector. Solar energy is a promising local and renewable energy source for Turkey. The contribution of photovoltaics (PVs) to the electricity mix is new in Turkey. In 2015, the percentage of PVs in the mix was 0.23% and in 2019 it was 3.05%. The PV industry showed a capacity growth of 213% in 2018; 249 MW of installed capacity in 2015 increased to 6700 MW in 2020. The increase in the solar power share in the Turkish electricity mix is expected to accelerate with government subsidies sourcing from GHG emission-reduction commitments, energy security, and independency targets of the country. Therefore, Turkey solar energy market is anticipated to grow during the forecast period.

Supportive Government Policies and Programs

Turkey has excellent solar energy potential due to its geographic location, with a total annual solar irradiation time of 2,741 hours (7.5 hours per day). To tap this natural resource, the Turkish government has developed several policies and programs to increase its share of the renewable energy mix. In 2021, renewable energy generation in Turkey was reported at 62.7 TWh, an increase of 22% from the previous year. In recent years, the increased solar energy generation resulted in a rise in total renewable energy generation in the country.

In 2022, the Turkish government, at the COP27 climate summit, announced its strategy to reduce greenhouse gas emissions by 41% below business-as-usual levels by 2030 and achieve net-zero emissions by 2053. As electricity generation is primarily responsible for emitting the highest emissions, deploying clean energy technologies, such as solar energy systems, would be essential. Hence, the solar energy market would see an upsurge in the installations of projects.

In 2023, the National Energy Plan announced by the government projected solar energy capacity to reach 2.9 gigawatts with an increase of approximately 500% by 2035, which is deemed to have the highest share in total installed generation capacity. The National Energy plan envisages achieving 100% clean electricity by 2035.

In October 2022, the Turkish government enabled USD 409 million to set up a 2 GW vertically incorporated solar module manufacturing facility in Izmir. The finance is received by Smart Solar Technologies to obtain the project. As per the Eleventh Development Plan (2019-2023), the Turkish government plans to achieve 38.8% of renewables in power generation by the end of 2023 and plans to commission 10 GW each of solar and wind capacity in the period 2018-28.

Increasing Awareness of Net-Zero Emission Plan

Solar energy is a cautious and environmentally friendly alternative to fossil fuels that can minimize greenhouse gas emissions, decrease the effects of climate change, provide energy security, and increase consumers’ standard of life. Turkey produced 403.3 million metric tons of carbon dioxide (MtCO2) emissions in 2021. Due to this, the government is focusing on decarbonization methods. For instance, In October 2021, Turkey endorsed the Paris Agreement on climate and promised to accomplish net zero carbon emissions by 2053. These initiatives are estimated to boost the predictions for renewable energy sources, such as solar energy, and increase the demand for solar energy systems over the next few years.

Acceptance of Solar Photovoltaic (PV) Technology

In future years, investment in solar energy is anticipated to increase since solar PV is quickly becoming the most affordable alternative for new energy generation in the country. Solar PV technology has emerged as the most preferred alternative energy generation technology in the nation, backed by the country's supportive policies and increased emphasis on meeting various capacity objectives. This is likely to aid the expansion of Turkey's entire solar energy sector during the forecast period. Solar PV technology is a significant aspect of Turkey's solar energy market. With accelerating technological advancements and simple installation processes, solar PV technology has been evolving more quickly. For the same reason, solar PV technology is preferred in the residential, commercial, and industrial sectors. Hence, due to this, the Turkey solar energy market is expected to grow during the forecast period.

Recent Developments

• In June 2023, KSTAR announced a significant strategic partnership with the Turkey Exclusive Agency with C&D Clean Energy, a prominent global clean energy solutions provider, and T Dinamik, a Turkish renewable energy investor and trading company. This collaboration aims to strengthen Turkey’s renewable energy sector and accelerate the country’s transition toward sustainable power generation.
• In May 2023, Turkey launches Europe's largest solar power plant, Kalyon Karapınar Solar Power Plant help Turkey curb its vast energy imports and back its drive to boost renewable energy production that has already been propelled by large-scale solar and wind power tenders. Moreover, The USD 1 billion plant has started producing electricity, preventing 1.5 million tons of carbon emissions annually and increasing the share of solar energy in Turkey’s total energy production by 20%.
• In 2022, Huawei Turkey and SolarAPEX agreed in the field of solar power plants. Huawei's products will be used in various projects of SolarAPEX under the contract signed at the Intersolar European Solar Energy Conference and Exhibition, which includes a total energy volume of 400 MW.

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Market Segments

The Turkey solar energy market is segmented into technology, solar module, application, end-use, and region. Based on technology, the market is segmented into photovoltaic systems and concentrated solar power systems. Based on solar modules, the market is segmented into monocrystalline, polycrystalline, cadmium telluride, amorphous silicon cells, and others. Based on application, the market is segmented into residential, commercial, and industrial. Based on end-use, the market is segmented into electricity generation, lighting, heating, and charging. Based on region, the market is segmented into the Marmara region, Central Anatolia, Aegean region, Mediterranean region, Black Sea region, South-Eastern Anatolia region, and Eastern Anatolia region.

Market Players