Ministry of Economy
The Ministry of Economy provides support for investments in order to reduce regional development disparities, and aims to increase high added value investments through incentives. It aims also to improve production and employment figures, and to expand research and development activities that contribute to international competitiveness.
5 th Region incentives are applied for investments into the production of turbines, generators and blades in support of renewable energy production. Regional incentives are implemented.
Regional Incentive Implementations
- Customs Duty Exemption
No customs duties are paid for imported machinery and equipment to be provided for the investment that is made by using the incentive.
- Social Security Premium Support (Employer’s Share)
The Ministry shall pay the employer’s national contributions that are due for additional employment falling within the scope of the incentive. The amount to be paid shall be a proportion of the minimum wage.
- Land Allocation
For investments made using an incentive certificate, land allocations are carried out free of charge in order to speed up the investment process in certain cases.
- VAT Exemption
VAT is not paid on machinery and equipment purchased as part of the investment to be made by using the incentive.
- Tax Reduction
Income and corporate tax are paid at discounted rates for a period of time, considering rates applicable for the invested regions within the scope of the incentive.
- Interest Rate Support
Interest rate support is provided on investment loans with a maturity of at least one year as part of the incentives to encourage regional investments.
The Ministry of Energy and Natural Resources
Electricity generated using renewable energy resources is considered within the scope of a high-priced public procurement commitment. This purchase commitment extends up to 10 years.
In addition, when using domestic technologies, machinery and equipment in renewable energy investments, amounts higher than the unit price for purchase commitment are applied.
Agriculture and Rural Development Support Institution (ARDSI)
ARDSI supports the renewable energy sector as part of its investment program.
Within the scope of the program, ARDSI provides financial support for solar, wind, biomass energy and geothermal energy production. Grants are provided for unlicensed investments of up to 1 MW installed power.
At the same time, ARDSI provides support to real and legal persons with the purpose of establishing renewable energy facilities for electricity generation and sales purposes within the scope of its “Diversification of Economic Activities and Business Development” support.
- Support for solar energy systems, wind energy, geothermal energy and biomass systems
- Support is provided for renewable energy investments to enable businesses to meet their internal energy requirements
- Support for the installation of independent renewable energy facilities
The World Bank offers loans to private companies operating in the renewable energy sector in energy generation and energy efficiency projects. The provided loan covers 75 percent of the investment rate. The maturity term of the loan is determined following an efficiency analysis of the project. In order to benefit from such a loan, investors must comply with the minimum requirements set by the World Bank and must have completed the relevant permit and licensing procedures for the related investment.
South Marmara Development Agency
South Marmara Development Agency provides grants to SMEs, registered in Balıkesir and Çanakkale, to help them improve their competitiveness.
In a Project Call for Proposals, a SME can submit project proposals in accordance with the subjects and conditions set for the program as part of a specific support program. For the support programs that can be applied during certain periods of the year, SME support has been given to producers of machinery and equipment for renewable energy production and to meet their own energy needs until now. The subject and sectors to be supported may change every year for each specific program.
The submitted projects are are then ranked according to the points received, and become eligible for grants depending on the program budget. Successful projects are given a grant of 50 percent. A portion of the grants is prepaid to firms in advance to help overcome initial
financing problems. Further information on the active grant programs that you can apply for and current information on all grant programs is available at www.gmka.gov.tr/destekler.