Turkey Solar Energy Market Analysis by Mordor Intelligence
The Turkey Solar Energy Market size in terms of installed base is expected to grow from 23.5 gigawatt in 2025 to 50 gigawatt by 2030, at a CAGR of 16.30% during the forecast period (2025-2030).
Annual additions accelerate as levelized solar electricity costs drop below USD 70/MWh, placing new plants at cost parity with imported natural gas and hard coal. Streamlined “super permit” rules now allow utility projects to be released within 24 months instead of 48, reducing development risk premiums and unlocking cheaper project financing. Turkey’s strong 7.2 daily solar-hour resource still operates under capacity compared to regional peers, leaving a significant runway for new installations that will anchor the Turkish solar energy market in the wider Eastern Mediterranean power mix. At the same time, local cell and module factories backed by USD 2.5 billion of new investment reduce import exposure and shelter project economics from TRY–USD swings.
Competitive pressure grows as exporters face looming EU Carbon Border Adjustment Mechanism fees, driving industrial buyers toward long-term solar PPAs and accelerating distributed generation uptake in Istanbul, Ankara, and Izmir. Grid-connected systems retain the lion’s share of new builds, yet rising curtailment in Konya and Antalya highlights the urgency of transmission upgrades and flexible resources. Net-metering and simplified licensing sustain the rooftop wave, particularly for installations under 5 MW, which now close payback periods within seven years. As these forces combine, the Turkey solar energy market is positioned for measured but durable growth through the decade.
Key Report Takeaways
- By technology, Solar Photovoltaic secured 99.99% of Turkey's solar energy market share in 2024, while Concentrated Solar Power posted a high 118.7% CAGR off an almost zero base.
- By grid type, On-Grid systems accounted for 90.7% of the Turkish solar energy market size in 2024; Off-Grid capacity is expected to expand at a 17.5% CAGR through 2030.
- By end user, Utility-scale plants held 64.3% of installed capacity in 2024, whereas Residential rooftops are advancing at a 20.4% CAGR through 2030.
- By province, Konya led with 1,350 MW operational in 2025, and the southern cluster is projected to capture 52% of new additions through 2030.
- Kalyon PV, Zorlu Enerji, and Astronergy together delivered 29% of 2024 utility-scale capacity, underscoring a moderately concentrated developer pool.
Turkey Solar Energy Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Net-metering expansion & rooftop mandate roll-outs | +2.1% | National, with early gains in Istanbul, Ankara, Izmir | Medium term (2-4 years) |
| Declining levelised cost of PV electricity (LCOE) in Turkey | +2.8% | National, concentrated in high-solar southern provinces | Short term (≤ 2 years) |
| Green hydrogen pilots anchoring utility-scale PPAs | +1.4% | Southern Turkey, Konya and Antalya provinces | Long term (≥ 4 years) |
| EU Carbon Border Adjustment Mechanism (CBAM) accelerating export-oriented PV adoption | +1.6% | Western Turkey, export-oriented industrial zones | Medium term (2-4 years) |
| "Made-in-Türkiye" module incentive scheme (Yerli Üretim Belgesi) | +1.9% | National, with manufacturing hubs in Manisa, Kayseri | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Net-metering expansion and rooftop mandate roll-outs
Monthly net-metering credits enable homes and factories to sell surplus power, reducing payback times to below seven years. Rooftop potential equals 120 GW, or three times the 2030 capacity target.[1]Ember, “Türkiye can expand solar by 120 GW through rooftops,” ember-energy.org Installations under 5 MW see faster licensing, which boosts small EPC activity in Istanbul and Ankara. Distribution firms flag voltage swings at midday, yet smart inverters ease the strain. The government plans digital meters nationwide, a move that supports broader bidirectional flows. These factors collectively expand the customer base of the Turkish solar energy market.
Declining LCOE of PV electricity
Utility bids are now clearing below USD 70/MWh, matching imported gas and coal prices. Module prices decline as local fabs scale, while low-cost financing reduces the weighted cost of capital. Southern provinces average 7.2 sun-hours daily, lifting capacity-factor economics. Storage prices fall too, making hybrid arrays viable for factories with evening loads. As a result, developers lock in long PPAs that underpin the Turkey solar energy market size through the decade.
Green-hydrogen pilots anchoring utility-scale PPAs
Biga Hydrogen opened a 400 MW electrolyzer line tied to a 1.5 MW solar plant. Steel and cement firms study similar setups that swap gas heat for hydrogen. Solar developers gain 20-year offtake certainty, which lowers lender risk premiums. Co-location also trims grid fees and transmission losses. Yet high electrolyzer costs cap near-term volumes, keeping growth modest until scale brings prices down.
“Made-in-Türkiye” module incentive scheme
Feed-in bonuses add up to TRY 1.3/kWh for Turkish panels and TRY 0.8/kWh for local inverters. Astronergy and four local partners commit USD 2.5 billion to new cell lines, targeting an annual output of 10 GW.[2]PV Tech, “Astronergy, four Turkish PV manufacturers to invest USD 2.5 billion in solar cell plants,” pv-tech.org Local supply cuts FX exposure and shortens lead times for EPC firms. Antidumping duties on select imports further protect price floors. Together, these levers secure input costs and bolster the domestic manufacturers' share of the Turkey solar energy market.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| Grid curtailment caps in high-solar provinces | -1.8% | Southern Turkey, Konya, Antalya, Mersin provinces | Short term (≤ 2 years) |
| TRY-USD FX volatility squeezing imported balance-of-system costs | -2.1% | National, particularly affecting imported component costs | Medium term (2-4 years) |
| Slow permitting for land acquisition in agricultural zones | -1.2% | Central and southern Turkey agricultural regions | Medium term (2-4 years) |
| Source: Mordor Intelligence | |||
Grid-curtailment caps in high-solar provinces
Rapid PV build-outs now press the 400 kV backbone, and curtailment averages 4% in Konya, climbing to 7% on clear spring days.[3]International Energy Agency, “Renewable Energy Market Update – June 2023,” iea.org The transmission operator applies hourly caps that slice merchant revenues and unsettle lenders. Developers respond with inverter oversizing, battery add-ons, and staggered energization schedules; however, these fixes increase project capital expenditures and temper near-term additions. Grid-reinforcement plans promise a new south-north corridor by 2027, yet until then, curtailment will trim the Turkey solar energy market's CAGR.
TRY-USD volatility squeezing imported balance-of-system costs
The lira’s 15% slide in 2024 lifted prices for inverters, trackers, and cables that still rely on overseas supply. Although the YEKDEM tariff adjusts quarterly, FX swings complicate loan servicing and insurance covenants. To hedge, larger EPC groups price PPAs in euros or buy forward contracts, strategies out of reach for many small installers. Local content rules partially offset the shock, yet domestic factories cannot meet the total demand for power electronics. The result is a modest drag on the Turkey solar energy market growth curve through 2027.
Segment Analysis
By Technology: PV Dominance Sustains, CSP Remains Niche
Solar Photovoltaic installations captured 99.99% of 2024 capacity, while Concentrated Solar Power lingered at 0.01%. PV’s cost edge is clear: the Karapinar complex delivers electricity at USD 69.9/MWh, whereas no commercial CSP bid has met the YEKA price ceiling. Consequently, PV additions are expected to average 2.9 GW annually, keeping the Turkey solar energy market size firmly PV-centric. CSP’s 118.7% CAGR reflects pilot-scale projects, such as a proposed 20 MW hybrid tower in Mersin; yet, even full build-out leaves CSP with a share below 1% by 2030.
Domestic manufacturers channel the USD 2.5 billion cell-fab investment into n-type modules that cross 24% efficiency, cutting land use per megawatt. EPC firms also favor bifacial and single-axis tracker combinations, which boost yield by 15–20% in southern provinces. CSP, in contrast, faces high water demand and limited local engineering expertise, so developers adopt a wait-and-see approach. Still, grid-stability debates could revive interest in thermal-storage-rich CSP after 2028.
Note: Segment shares of all individual segments available upon report purchase
By Grid Type: On-Grid Projects Lead, Off-Grid Finds Niches
On-grid plants accounted for 90.7% of installations in 2024, mirroring the country's push for centrally dispatched renewables. Their 17.5% CAGR keeps pace with national demand growth, ensuring the on-grid slice of Turkey's solar energy market share stays above 88% through 2030. Net-metered rooftops feed surplus into local feeders, while utility parks sign 15-year feed-in deals under YEKA.
Off-grid arrays serve telecom towers, border posts, and eco-tourism resorts where grid links would exceed USD 1 million per kilometer. Falling lithium-iron-phosphate battery prices shorten the payback period, yet the segment grows from a small base, adding roughly 50 MW per year. Hybrid kits that switch between islanded and grid-tied modes blur category lines and could boost off-grid uptake in northern Black Sea villages that frequently experience storm outages.
By End User: Utility Still Commands, Residential Accelerates
Utility-scale facilities held 64.3% of installed power in 2024 thanks to multi-hundred-megawatt YEKA rounds. They attract export-credit financing, which locks borrowing costs below 6% and maintains robust margins even at flat tariffs. However, rooftop households logged the fastest 20.4% CAGR, aided by simple e-permitting that now approves sub-10 kW kits within five days. If that pace holds, residential rooftops will supply 7% of the nation's solar output by 2030, thereby expanding the Turkey solar energy market share for distributed assets.
Commercial-and-industrial rooftops straddle both worlds. Textile plants in Bursa install 5 MW systems to shave peak tariffs and earn CBAM credits, while logistics centers near Izmir deploy car-park canopies coupled with 2 MWh batteries for backup. As storage rules mature, C&I owners may trade flexibility services, turning private arrays into micro-balancing resources for the main grid.
Note: Segment shares of all individual segments available upon report purchase
Geography Analysis
Turkey's southern corridor accounts for 52% of the country's installed capacity, equivalent to 12.2 GW, or just over half of the Turkish solar energy market size in 2025. Konya alone hosts 1.35 GW at Karapinar and secures another 900 MW in late-stage permitting, while Antalya and Mersin each surpass 1 GW of cumulative arrays.[4]Philippine News Agency, “Europe's Largest Solar Power Plant to Officially Launch Tuesday,” pna.gov.ph These provinces average more than 1,600 kWh/m² of annual irradiation, enabling capacity factors near 23% and keeping levelized costs among the lowest in the country. Curtailment risk is highest here, yet grid-reinforcement plans that add 1.8 GW of south-north transfer capacity by 2027 safeguard future buildouts.
Western Turkey, including Istanbul, Ankara, and Izmir, holds 6.8 GW, or 29% of total installations, a share that is expected to rise to 9.5 GW by 2030 as rooftops expand across densely industrialized areas. This region records the fastest 12.6% CAGR among all clusters, aided by euro-linked corporate PPAs that hedge Carbon Border Adjustment Mechanism fees. Net-metered households and small factories can contribute up to 15% of the local midday load on sunny days, prompting distribution companies to pilot smart inverter settings that ride through reverse power events. High urban land prices spur creative use of car-park canopies and building-integrated modules, widening access for space-constrained customers.
Eastern and southeastern Anatolia contribute just 4.5 GW, or 19% of Turkey's solar energy market share, yet house the nation's largest uncommitted land bank. Low population density facilitates site aggregation for parks exceeding 50 MW, and agrivoltaic pilots near Diyarbakır demonstrate that maize yields remain intact under elevated solar trackers. Transmission remains the hurdle; only 220 kV lines serve much of the plateau, capping the immediate government's potential. The government's 2030 grid blueprint allocates TRY 34 billion for double-circuit upgrades, positioning the region as a medium-term growth frontier once these links come online.
Competitive Landscape
Turkey’s utility-scale segment is moderately concentrated, with the top five developers accounting for 61% of the additions in 2024, resulting in a mid-level rivalry profile for the sector. Kalyon PV leads with vertically integrated wafers-to-modules capability and 2.2 GW operating or under construction, followed by Zorlu Enerji’s 1.1 GW of mixed solar-wind assets. Astronergy’s USD 2.5 billion joint venture secures 10 GW of annual cell output, anchoring domestic supply and reducing foreign-exchange exposure for local EPC partners. These first-tier players are increasingly bundling storage to win YEKA auctions, which now demand dispatchable profiles.
International equipment suppliers widen technology choice. Huawei, SMA Solar Technology, and Fronius together ship more than 60% of central and string inverters, competing on grid-support firmware and 10-year service wraps. PVH and Nextracker sign multiyear steel-frame deals with Turkish fabricators, localizing 70% of tracker content to capture Yerli Üretim bonuses. Storage entrants, led by Sungrow and CATL, target hybrid solar tenders expected in 2026, while domestic integrators such as İnform Elektronik are ready with containerized battery packages compatible with Turkey’s frequency-control market.
Below 5 MW, fragmentation reigns: over 600 licensed installers vie for rooftop and car-park contracts across 81 provinces. Consolidation is gathering pace as rising bond yields squeeze working capital, prompting smaller EPC shops to merge or pivot toward O&M niches. Digital-twin software and drone-based thermography are emerging as differentiation tools for service firms courting asset managers, who now oversee 15-year performance guarantees. As local banks tighten debt terms, developers with proven execution histories and strong foreign-currency revenues gain a distinct cost-of-capital edge, reinforcing a gradual move toward larger, integrated groups.
Turkey Solar Energy Industry Leaders
-
Kalyon PV
-
Smart Solar
-
HT Solar Energy
-
CW Enerji
-
Ankara Solar A.Ş.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- April 2025: Astronergy and four Turkish manufacturers announced a USD 2.5 billion solar-cell investment that will create multiple gigawatts of annual capacity and thousands of jobs.
- October 2024: Turkey imposed anti-dumping duties on select imported modules, while exempting four domestic producers to strike a balance between supply security and price stability.
- September 2024: Kalyon Enerji secured EUR 249 million in export-backed financing for a 390 MWp solar portfolio across seven sites.
- September 2024: Limak commissioned additional capacity at Turkey’s second-largest solar complex, adding new renewable energy to the grid.
Turkey Solar Energy Market Report Scope
Solar energy is heat and radiant light from the sun that can be harnessed with technologies such as solar power, used to generate electricity, and solar thermal energy, used for applications such as water heating. It is regarded as a clean source of energy that can be used as a replacement to fossil fuels. Solar energy technology can be built flexibly at scale, storing the collected energy for later use.
The Turkey Solar Energy Market is segmented by Type. By type, the market is segmented as Solar Photovoltaic (PV) and Concentrated Solar Power (CSP). For each segment, the market sizing and forecasts have been done based on installed capacity (in MW).
| Solar Photovoltaic (PV) |
| Concentrated Solar Power (CSP) |
| On-Grid |
| Off-Grid |
| Utility-Scale |
| Commercial and Industrial (C&I) |
| Residential |
| Solar Modules/Panels |
| Inverters (String, Central, Micro) |
| Mounting and Tracking Systems |
| Balance-of-System and Electricals |
| Energy Storage and Hybrid Integration |
| By Technology | Solar Photovoltaic (PV) |
| Concentrated Solar Power (CSP) | |
| By Grid Type | On-Grid |
| Off-Grid | |
| By End-user | Utility-Scale |
| Commercial and Industrial (C&I) | |
| Residential | |
| By Component (Qualitative Analysis) | Solar Modules/Panels |
| Inverters (String, Central, Micro) | |
| Mounting and Tracking Systems | |
| Balance-of-System and Electricals | |
| Energy Storage and Hybrid Integration |
Key Questions Answered in the Report
What cumulative capacity is targeted for 2030?
National roadmaps aim for 50 GW of installed solar by 2030, up from 23.50 GW in 2025.
Which region contributes the largest share today?
The southern corridor centered on Konya, Antalya, and Mersin supplies 52% of current capacity.
How fast are residential rooftops expanding?
Household systems register a 20.4% CAGR through 2030 under net-metering incentives.
Why is the “super permit” important for investors?
It trims project approval from 48 to under 24 months, lowering development risk and interest costs.
How does EU CBAM affect Turkish manufacturers?
From 2026, exporters face carbon levies, so many sign long-term solar PPAs to cut embedded emissions.
What local incentives back solar manufacturing?
The Yerli Üretim scheme pays up to TRY 1.3/kWh for Turkish-made modules and TRY 0.8/kWh for domestic inverters.
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