Solar Panel Market in Turkey

Solar Panel in Turkey Trends and Forecast

The future of the solar panel market in Turkey looks promising, with opportunities in the commercial, residential, and industrial applications. The global solar panel market is expected to reach an estimated $248.1 billion by 2031, with a CAGR of 7.6% from 2025 to 2031. The solar panel market in Turkey is also forecasted to witness strong growth over the forecast period. The major drivers for this market are growing awareness of the benefits of solar energy, increasing demand for renewable energy, and the need to reduce carbon emissions.

• Lucintel forecasts that, within the application category, photovoltaic is expected to witness higher growth over the forecast period due to its affordability, easy installation, and efficiency at converting sunlight into electricity.
• Within the end use category, the commercial sector is expected to witness the highest growth over the forecast period due to growing preference for solar energy in this sector to reduce electricity expenses.

Emerging Trends in the Solar Panel Market in Turkey

Turkey’s solar panel market is undergoing drastic changes due to policy reforms, technological developments, and growing private sector investment. These shifts are transforming the energy sector, fostering sustainability, and boosting energy security. The following five emerging trends capture the radical changes in the industry.

• Unlicensed Solar Installation Expansion at a Fast Pace: Turkish government reforms have made it easier for unlicensed solar installations, leading to a surge in self-consumption facilities. This trend has attracted investments and created more than 14,000 facilities, significantly boosting the country’s solar capacity. The expansion aids in increasing energy autonomy and reducing dependence on foreign electricity.
• Integration of Energy Storage Solutions: The integration of energy storage solutions with solar facilities is increasing to promote grid stability and energy reliability. Pre-licenses for 14 GW worth of storage-integrated solar plants have been issued in Turkey. This integration enhances solar energy efficiency and supports the transition to a more resilient energy infrastructure.
• Floating Solar Farms Development: Turkey is exploring the feasibility of floating solar farms on water reservoirs to maximize land use and increase renewable energy capacity. The Renewable Energy Resource Zone (YEKA) program has identified 53 GW of potential for floating solar facilities. This method overcomes land scarcity challenges and supports the country’s renewable energy objectives.
• Hybrid Solar System Progression: Hybrid solar systems, combining solar energy with other renewable sources such as wind or geothermal, are gaining popularity in Turkey. These systems provide higher efficiency and reliability, catering to various energy demands. Government support through incentives and expedited permitting processes is driving their adoption across multiple industries.
• Increased Private Sector Investment: The Turkish solar industry is experiencing a dramatic rise in private sector investments, driven by encouraging policies and financial subsidies. Reduced permitting periods and the provision of long-term purchasing guarantees by the government have attracted significant investment, positioning Turkey as a competitive leader in the global renewable energy market.

Together, these emerging trends are reshaping Turkey’s solar panel market, creating a more sustainable, robust, and economically sound energy system. The convergence of pioneering technologies, favorable policies, and private sector involvement is setting the stage for Turkey to achieve its renewable energy objectives and strengthen its energy security.

Recent Developments in the Solar Panel Market in Turkey

Turkey’s solar panel industry has seen noteworthy developments, marked by policy improvements, technological innovations, and rising investments. These developments are guiding the nation toward realizing its renewable energy goals and strengthening its energy infrastructure. The following five developments highlight the dynamic progress in the industry.

• Attainment of Solar Capacity Targets in Advance: Turkey has doubled its solar capacity to more than 19 GW in two and a half years, surpassing its 2025 target ahead of schedule. The rapid growth, mainly driven by unlicensed self-consumption schemes, has reduced reliance on imported electricity and demonstrates the nation’s commitment to renewable energy. This progress aligns with Turkey’s long-term renewable energy goals.
• Launch of 800 MW Solar Tender: The Ministry of Energy and Natural Resources has launched a tender for 800 MW of solar capacity across six proposed projects. This initiative aims to diversify the energy mix and spur investment in renewable energy infrastructure. The projects are strategically located to optimize energy production and distribution, furthering the country’s renewable energy objectives.
• Launch of Regulatory Reforms: Recent regulatory reforms have simplified the process for unlicensed electricity production, encouraging consumers to invest in solar energy systems. These reforms have attracted nearly $10 billion in investments and facilitated the development of over 14,000 facilities. The reforms align with Turkey’s vision of increasing renewable energy’s contribution to electricity generation.
• Energy Storage Integration Prioritization: Turkey is prioritizing the integration of energy storage systems with solar power plants to enhance grid stability and energy reliability. By the end of 2024, pre-licenses for 14 GW of integrated storage solar projects will surpass the 2030 target, ensuring effective energy utilization and supporting the transition to a secure energy infrastructure.
• Development of Renewable Energy Resource Zones: The Renewable Energy Resource Zone (YEKA) program continues to grow, with a tender for an 800 MW solar power plant scheduled for 2025. YEKA aims to streamline land allocation for investors, facilitate the installation of large projects, and promote local production of renewable energy technologies. This program plays a key role in Turkey’s renewable energy policy.

These recent developments are significantly impacting Turkey’s solar panel market by accelerating capacity expansion, attracting investments, and enhancing energy infrastructure. The government’s proactive policies and initiatives are positioning Turkey at the forefront of renewable energy in the region. Continued focus on innovation and investment will be crucial for sustaining this momentum and achieving long-term energy goals.

Strategic Growth Opportunities for Solar Panel Market in Turkey

The Turkish solar panel market has strong potential for growth, fueled by positive government policies, technological innovation in the field of solar technology, and a rising need for renewable energy. With a strong emphasis on diversifying the energy mix and creating energy security, Turkey provides various strategic growth opportunities in major applications. Not only are these opportunities paving the way for energy independence, but they are also meeting the long-term sustainability aspirations of the nation.

• Residential Solar Installations: Residential solar installations in Turkey are fueled by rising electricity prices and generous government incentives. With homeowners increasingly seeking to reduce their dependence on the power grid, solar panels provide a viable option. Government subsidies and tax credits are making solar systems more accessible to families, allowing them to lower their electricity bills and contribute to environmental sustainability. This trend is likely to continue as Turkey seeks to enhance energy independence and lower its carbon footprint.
• Solar Solutions for Commercial Properties: Commercial properties are increasingly embracing solar solutions to minimize operational expenditure and increase sustainability. With increases in electricity charges and the drive toward environmentally friendly business practices, more companies are incorporating solar power to balance high energy usage. Government assistance through tax breaks and renewable energy grants is hastening this movement. As companies seek to reduce energy expenses and achieve sustainability goals, commercial solar solutions will be in greater demand, making solar power a staple of the Turkish commercial market.
• Utility-Scale Solar Farms: The rich land and high solar irradiance of Turkey make utility-scale solar farms an attractive growth opportunity. With government incentives increasingly supporting large solar projects, solar farm development is poised to take off. Solar farms can generate enormous amounts of energy, helping Turkey diversify its energy mix and become less reliant on fossil fuels. Utility-scale solar farms not only provide energy security but also create many jobs, further bolstering the economic footprint of Turkish solar industry.
• Integration of Energy Storage: The use of solar systems and energy storage solutions combined is imperative for ensuring grid stability and resolving the intermittency of solar energy. With increasingly advanced energy storage technologies, Turkey is investing in integrating energy storage systems with solar plants. Such systems facilitate cost-effective storage of solar energy for use during peak consumption hours or when there is a lack of sunshine. The pairing of solar energy and storage solutions has the potential to transform Turkish energy infrastructure, enabling the country to transition toward a more sustainable and resilient energy system.
• Off-Grid Solar Systems for Rural Communities: For rural and remote areas of Turkey where grid connections are limited or nonexistent, off-grid solar systems offer a huge growth opportunity. Solar home systems and mini-grids are part of these systems, providing an affordable option to electrify unserved communities. The government is placing growing emphasis on broadening solar access in such areas, reducing the countries reliance on diesel generators and other sources of air pollution. As the price of solar technology continues to decline, off-grid solar applications will be key to enhancing energy access and spurring rural economic development.

These five development prospects for Turkish solar panel market are key to determining the nations energy destiny. From residential and commercial uses to large solar farms, integration of energy storage, and off-grid solutions, Turkey is building a diversified, robust, and clean solar ecosystem. These developments not only meet energy security and sustainability objectives but also drive economic development through job creation and fossil fuel independence.

Solar Panel Market in Turkey Driver and Challenges

The solar panel market in Turkey is affected by a range of technological, economic, and regulatory drivers and challenges. These drivers and challenges have a significant impact on the future of the market, influencing both growth opportunities and obstacles. Technological innovation, government support, and growing demand for renewable energy are propelling the market, while regulatory challenges, grid integration problems, and land availability for large-scale projects are major hurdles to advancement. Understanding these factors is critical to understanding the changing solar market dynamics in Turkey.

The factors responsible for driving the solar panel market in Turkey include:
• Government Support and Incentives: The government of Turkey has implemented a range of incentives to promote the development of the solar energy industry. These include feed-in tariffs, tax credits, and subsidies for residential and commercial solar projects. These policies help cut the upfront investment in solar installations, making solar power more accessible to businesses and consumers. Intending to reach renewable energy targets, the government incentives are fueling a high level of investments and increasing the construction of solar infrastructure in the nation.
• Technological Improvements in Solar Energy: Solar panel technological advancements, including improved efficiency and reduced production costs, have made solar energy more accessible and affordable. Energy storage technologies are also enabling the use of solar energy even on cloudy days. As technology continues to improve, the price of solar power is expected to fall, fueling larger adoption in residential, commercial, and industrial applications. This positions solar power as a viable alternative to conventional forms of energy in Turkey.
• Increasing Price of Electricity: With electricity prices in Turkey increasing, individuals and companies are increasingly looking for solar energy as a cheaper solution. Solar panels reduce dependence on the grid and lower electricity charges, leading to long-term financial savings. Increased energy costs are driving demand for solar solutions, which in turn is contributing to growth in Turkish solar market. This move toward solar power will continue as the price difference between solar power and traditional energy sources continues to narrow.
• Environmental Sustainability Goals: Turkey has pledged to lower its carbon footprint and meet its renewable energy goals, including a substantial increase in the share of solar energy in the countries grid. This pledge is propelling investments and policy changes that support the development of the solar market. With the governments focus on sustainability, the private sector and consumers are also encouraged to use clean energy. This follows the global movement to combat climate change, and Turkey is positioned at the forefront of renewable energy in the region.
• Private Sector Investment: Growing private sector investment is a key force behind Turkish solar panel market. Private companies are investing heavily in solar projects, encouraged by favorable policies, low installation costs, and long-term purchase agreements. The availability of fiscal subsidies and incentives makes investing in solar energy projects even more attractive to investors, further fueling sector growth. The influx of private capital is essential for Turkey to achieve its renewable energy goals and continue its energy transition.

Challenges in the solar panel market in Turkey are:
• Grid Integration and Storage: Integrating solar power into the national grid is one of the biggest challenges facing Turkish solar market. Solar power is intermittent, as it is not generated during peak demand times or when weather conditions are cloudy. To overcome this, Turkey must invest in strong energy storage facilities and grid infrastructure. Without proper integration, Turkey will be unable to fully leverage its solar energy resources. This presents a major technological and infrastructure challenge.
• Regulatory and Policy Uncertainty: Although the Turkish government has launched numerous supportive policies for solar power, regulatory uncertainty remains a major barrier. Uncertainty in policy and tariff structures can lead to instability and discourage long-term investment. For example, changes in feed-in tariffs have caused hesitation among investors and project developers. A stable and predictable regulatory framework is critical to maintaining investor confidence and ensuring the ongoing growth of the solar market.
• Land Availability for Large-Scale Projects: Turkish limited available land for large-scale solar projects is another challenge facing the market. In densely populated or agriculturally valuable areas, land use conflicts can delay or prevent the construction of solar farms. Additionally, the permitting process for large projects can be lengthy and complex. To address this issue, Turkey needs to explore alternative solutions such as floating solar farms and use land more efficiently to meet its solar energy goals.

Government incentives, technological improvements, and increasing energy prices are driving the solar panel market in Turkey, fueling growth in the industry. However, challenges such as grid integration, regulatory uncertainty, and limited land for large projects must be overcome. By addressing these barriers, Turkey can solidify its position as a renewable energy leader, accelerating the transition to a secure and sustainable energy future.

List of Solar Panel Market in Turkey Companies

Companies in the market compete based on the product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leveraging integration opportunities across the value chain. Through these strategies, solar panel companies cater to increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the solar panel companies profiled in this report include:
• Company 1
• Company 2
• Company 3
• Company 4
• Company 5
• Company 6
• Company 7
• Company 8
• Company 9
• Company 10

Solar Panel Market in Turkey by Segment

The study includes a forecast for the solar panel market in Turkey by type, application, and end use.

Solar Panel Market in Turkey by Type [Analysis by Value from 2019 to 2031]:

• Crystal Silicon
• Monocrystalline Silicon
• Polycrystalline Silicon
• Others

Solar Panel Market in Turkey by Application [Analysis by Value from 2019 to 2031]:

• Photovoltaic
• Concentrated Solar Power

Solar Panel Market in Turkey by End Use [Analysis by Value from 2019 to 2031]:

• Commercial
• Residential
• Industrial

Features of the Solar Panel Market in Turkey

Market Size Estimates: Solar panel in Turkey market size estimation in terms of value ($B).
Trend and Forecast Analysis: Market trends and forecasts by various segments.
Segmentation Analysis: Solar panel in Turkey market size by type, application, and end use in terms of value ($B).
Growth Opportunities: Analysis of growth opportunities in different types, applications, and end uses for the solar panel in Turkey.
Strategic Analysis: This includes M&A, new product development, and competitive landscape of the solar panel in Turkey.
Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

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FAQ

Q.1 What are the major drivers influencing the growth of the solar panel market in Turkey?
Answer: The major drivers for this market are rising concern towards environmental pollution, significant demand for renewable energy, and escalating demand for solar panels from residential and commercial projects.
Q2. What are the major segments for solar panel market in Turkey?
Answer: The future of the solar panel market in Turkey looks promising with opportunities in the commercial, residential, and industrial applications.
Q3. Which solar panel market segment in Turkey will be the largest in future?
Answer: Lucintel forecasts that photovoltaic is expected to witness higher growth over the forecast period due to its affordability, easy installation, and efficient at converting sunlight into electricity.
Q4. Do we receive customization in this report?
Answer: Yes, Lucintel provides 10% customization without any additional cost.

This report answers following 10 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the solar panel market in Turkey by type (crystal silicon, monocrystalline silicon, polycrystalline silicon, and others), application (photovoltaic and concentrated solar power), and end use (commercial, residential, and industrial)?
Q.2. Which segments will grow at a faster pace and why?
Q.3. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?
Q.4. What are the business risks and competitive threats in this market?
Q.5. What are the emerging trends in this market and the reasons behind them?
Q.6. What are some of the changing demands of customers in the market?
Q.7. What are the new developments in the market? Which companies are leading these developments?
Q.8. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?
Q.9. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?
Q.10. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?
For any questions related to Solar Panel Market in Turkey, Solar Panel Market in Turkey Size, Solar Panel Market in Turkey Growth, Solar Panel Market in Turkey Analysis, Solar Panel Market in Turkey Report, Solar Panel Market in Turkey Share, Solar Panel Market in Turkey Trends, Solar Panel Market in Turkey Forecast, Solar Panel Companies, write Lucintel analyst at email: helpdesk@lucintel.com. We will be glad to get back to you soon.