

A comprehensive 2026 guide to unlicensed solar power projects in Turkey for foreign investors, covering eligibility, consumption requirements, grid connection, surplus electricity sales, project acquisition, due diligence, permits, financing, and legal risks.
Turkey offers significant opportunities for foreign investors seeking to reduce electricity costs, meet sustainability targets, and develop renewable energy infrastructure through unlicensed solar power projects.
Despite the term “unlicensed,” these projects are not exempt from regulation. The term primarily means that an eligible investor may generate electricity without obtaining an electricity generation license or preliminary license from the Energy Market Regulatory Authority, commonly known as EMRA. The project must still comply with detailed rules governing consumption facilities, grid capacity, connection applications, land rights, construction, environmental approvals, technical acceptance, metering, settlement, and surplus electricity.
Unlicensed electricity generation in Turkey is principally designed to enable electricity consumers to generate energy for their own consumption. It should not be approached as an unrestricted electricity-trading model. The Ministry of Energy and Natural Resources confirms that a person establishing an unlicensed project must generally have at least one electricity subscription or consumption facility under its control.
For foreign investors, the most important question is therefore not simply whether a solar project can be constructed without an EMRA license. The investor must also determine whether the project is properly linked to genuine electricity consumption, whether grid capacity is available, whether the land and permits are secure, and whether the expected financial model complies with the current surplus electricity rules.
An unlicensed solar power project is a photovoltaic electricity generation facility established under the exemptions provided by the Electricity Market Law and the Regulation on Unlicensed Electricity Generation in the Electricity Market.
Eligible real persons and legal entities may establish certain generation facilities without obtaining:
However, the exemption from licensing does not eliminate other legal and administrative requirements.
An unlicensed solar investor may still need:
The EMRA website maintains the applicable regulation, application documents, connection agreement forms, and other official materials concerning unlicensed electricity generation.
The primary legal purpose of the unlicensed generation model is self-consumption.
The investor establishes a solar power facility to offset the electricity consumed by one or more associated consumption facilities. Depending on the applicable project category, monthly settlement may be used to compare electricity produced and electricity consumed.
Surplus electricity may be sold only within the limits and conditions prescribed by the legislation. The model should therefore not be treated as an unrestricted power plant investment established solely to generate electricity for sale.
For many unlicensed projects, the amount of surplus electricity eligible for payment cannot exceed the total consumption of the associated consumption facility. Electricity injected into the grid above the eligible amount may be treated as a free contribution to the Renewable Energy Resources Support Mechanism, commonly known as YEKDEM. The official Ministry guidance notes an exception for certain residential projects with an installed capacity of 50 kW or less.
Foreign investors may participate in unlicensed solar projects through companies established in Turkey or through acquisitions, joint ventures, rooftop arrangements, lease structures, or energy-performance models.
A Turkish company with foreign shareholders is generally treated as a Turkish legal entity. Nevertheless, foreign ownership may create additional issues relating to:
A foreign company that has no legal presence or qualifying consumption facility in Turkey cannot normally rely on the unlicensed regime merely to construct a merchant solar power plant and sell all electricity to the grid.
The proposed corporate, consumption, and property structure should therefore be reviewed before land is purchased or an engineering, procurement, and construction agreement is signed.
The principal legal sources governing unlicensed solar power projects include:
The Ministry of Energy and Natural Resources publishes the applicable electricity market regulations and related settlement procedures through its official legislation platform.
As a general rule, yes.
The person or company seeking to establish an unlicensed solar facility must have at least one associated electricity consumption facility or subscription under its control. Where the consumption facility does not yet exist at the application stage, it may need to be completed by the time the generation facility becomes operational, depending on the applicable project category.
A consumption facility may include:
The applicant must demonstrate the legal and operational relationship between the electricity consumer and the solar generation facility.
The Ministry’s current guidance expressly states that the applicant must have at least one electricity subscription or consumption facility.
They may be physically separated in certain circumstances.
Some unlicensed solar structures allow electricity to be generated in one location and settled against consumption in another location. However, the permissibility of such a structure depends on the relevant legal category, connection level, distribution region, and the specific conditions of the current regulation.
The general rule is that the generation and consumption facilities must be within the same distribution region. Certain categories under the regulation allow the generation facility to be established outside the distribution license region in which the consumption facility is located.
Foreign investors should not assume that any consumption facility in Turkey can be freely matched with any solar project. The following must be reviewed:
Unlicensed solar projects in Turkey may be installed on:
Rooftop solar projects may offer advantages because the generation and consumption facilities are often located at the same site.
Potential benefits include:
However, rooftop projects require careful review of:
Land-based projects may provide greater capacity but often create more complex legal risks involving:
For most solar projects, the application is submitted to:
The official Ministry guidance confirms that non-hydraulic unlicensed applications are submitted to the relevant distribution company, distribution-license-holding organised industrial zone, or TEİAŞ where transmission-level connection is requested.
Applications have been accepted electronically through the relevant systems since October 2023, and physical submissions may not be treated as valid by distribution companies applying the electronic procedure.
The documents required depend on the applicant, project type, location, connection level, and installed capacity.
Typical documentation may include:
Missing, inconsistent, or misleading documentation may lead to rejection.
The official EMRA unlicensed generation page provides access to the regulation and the list of information and documents required for applications and requests.
Securing land or a suitable roof does not guarantee that the project can be connected to the grid.
The distribution company or TEİAŞ evaluates matters such as:
A project may be rejected or offered lower connection capacity where the grid cannot safely accommodate the requested power.
Foreign investors should therefore obtain a preliminary grid assessment before making irreversible commitments.
A positive technical assessment may lead to the issuance of a call letter inviting the applicant to execute a connection agreement.
The call letter is a critical project document. It usually identifies:
The investor must comply with the conditions and deadlines stated in the call letter.
Failure to submit the project, execute the agreement, complete construction, or satisfy another mandatory step within the applicable period may result in loss of the connection right.
A call letter should not be treated as an ordinary freely transferable commercial asset.
Transactions marketed as the “sale of a call letter” may involve substantial legal risk because the underlying rights are linked to:
Where an investor wishes to acquire a company holding a call letter or connection right, comprehensive due diligence should be completed before signing.
The buyer should verify:
Solar projects must comply with the approved electrical and mechanical installed-capacity rules.
The Ministry’s official guidance states that the requested mechanical installed capacity for an unlicensed facility may not exceed twice the electrical installed capacity.
Oversizing photovoltaic panels relative to inverter capacity may improve production profiles, but the project must remain within:
Installing capacity beyond the approved project may lead to:
Unlicensed solar projects generally operate through a settlement mechanism comparing generation and consumption.
Where the applicable conditions are met, surplus electricity may be purchased by the authorised supplier for a prescribed period and at the legally applicable price.
The Ministry’s guidance states that, for renewable facilities falling within specified regulatory categories, surplus electricity remaining after monthly settlement may be purchased for ten years at the applicable single-time active energy retail price for the relevant subscriber group.
The financial model should be based on:
Projected income should not be calculated solely by multiplying annual solar generation by an assumed market price.
One of the most important risks for foreign investors is the limitation imposed on paid surplus electricity.
For many projects, the electricity eligible for sale cannot exceed the consumption of the associated consumption facility.
Where the solar plant produces more electricity than the amount eligible under the consumption-based calculation, the excess may be transferred to YEKDEM without payment.
This rule makes consumption due diligence essential.
A buyer should review:
A reduction in electricity consumption can materially reduce project revenue.
A change in the consumption facility may affect the project’s legal and financial position.
The investor should determine whether the new consumption facility:
Regulatory changes published in late 2025 strengthened the conditions applicable to consumption-facility changes, including requirements relating to contracted power and annual consumption. A replacement facility that does not satisfy the prescribed conditions may result in part of the electricity being transferred to YEKDEM without payment.
Because these rules may directly affect project income in 2026, any consumption-facility replacement should be legally reviewed before implementation.
After obtaining the connection right, the investor must prepare the technical project and obtain approval from the competent authority.
Construction should comply with:
After construction, the project must pass technical acceptance before lawful commercial operation.
Technical acceptance may be delayed or refused due to:
A Turkish company with foreign shareholders may acquire or lease land, but the transaction must be reviewed under Turkish property and foreign-investment legislation.
Potential restrictions may arise where the property is located:
Foreign investors should not purchase project land solely on the basis of a seller’s representation that the property is suitable for solar development.
A full title and zoning investigation should examine:
Many foreign investors prefer long-term land or rooftop leases.
The lease should address:
A short or easily terminable lease may make the project unfinanceable.
An unlicensed status does not exempt a solar facility from zoning and construction legislation.
Depending on the location and structure, the project may require:
A valid grid connection does not cure an unlawful building or land use.
The environmental obligations depend on:
The project may require:
Foreign investors should also assess environmental, social, and governance obligations imposed by lenders or international financing institutions.
The engineering, procurement, and construction agreement is one of the most important contracts in a solar investment.
The contract should regulate:
A turnkey label does not automatically make the contractor responsible for every regulatory or technical problem. Responsibilities must be expressly allocated.
Solar equipment should be reviewed for:
Sanctions, export restrictions, supply-chain disruption, and customs delays may affect imported panels, inverters, transformers, and storage components.
Projects may be financed through:
Lenders usually require security over:
However, project rights created under energy regulation may not always be freely assigned or pledged. The security structure should therefore be coordinated with regulatory requirements.
Foreign investors may acquire:
The buyer should conduct specialised legal, technical, financial, tax, and environmental due diligence.
The legal review should cover:
An operational project may appear commercially successful while containing serious legal defects.
Common hidden risks include:
The purchase agreement should include project-specific representations, warranties, indemnities, escrow arrangements, and price-retention mechanisms.
Where the investor acquires the shares of the project company, the legal entity holding the project rights remains unchanged.
The buyer consequently acquires both the assets and liabilities of the company, including:
The investor should also determine whether the share transfer:
Purchasing panels, inverters, transformers, or other physical equipment does not automatically transfer regulatory rights.
The buyer must separately verify whether it can acquire or replace:
An asset purchase agreement should not state that the project rights are transferred unless the applicable regulations legally permit the transfer.
Foreign investors sometimes consider an unlicensed solar project together with a private power purchase or energy-services agreement.
The parties must distinguish between:
A contract that effectively allows an unlicensed producer to sell electricity outside the permitted regulatory framework may be challenged as an unauthorised market activity.
The commercial model should therefore be reviewed under both electricity market law and contract law.
Non-compliance may lead to:
The Ministry’s legislation platform confirms that 2026 administrative fine amounts under Article 16 of the Electricity Market Law are governed by a dedicated annual communiqué.
A rejection by a distribution company, organised industrial zone, TEİAŞ, EMRA, or another public authority should be examined according to the legal nature of the decision.
Potential remedies may include:
The appropriate court and procedure depend on whether the dispute arises from an administrative act, regulated network activity, private contract, property right, or another legal relationship.
As of 2026, foreign investors should pay particular attention to:
EMRA opened a new draft amendment to the Unlicensed Electricity Generation Regulation for public consultation in December 2025. Because a draft does not itself constitute binding law, investors should verify whether the proposed provisions were subsequently enacted before relying on them in a 2026 transaction.
Before investing in an unlicensed solar project in Turkey, a foreign investor should:
No. It only means that the project may be exempt from obtaining an electricity generation license and preliminary license. Connection approval, project approval, land rights, technical acceptance, and other permits may still be required.
Yes, generally through an eligible Turkish company or investment structure. The company must comply with consumption, connection, land, corporate, and technical requirements.
Generally, yes. The unlicensed model is primarily based on generating electricity to meet the applicant’s own consumption needs.
Not necessarily. Paid surplus electricity may be limited by the consumption of the associated facility. Excess generation outside the applicable limit may be transferred to YEKDEM without payment.
Certain regulatory categories permit remote generation, but distribution-region, connection, ownership, and settlement requirements must be satisfied.
A company acquisition may be possible, but the buyer must verify whether the ownership change is permitted and whether it affects the call letter, consumption facility, connection right, or project eligibility.
It should not be treated as an ordinary transferable asset. Any proposed transaction must be reviewed under the applicable unlicensed generation rules.
A reduction in consumption may reduce the amount of surplus electricity eligible for payment. This can materially affect project revenue and debt-service capacity.
Yes, where the project satisfies the applicable legal conditions. The purchase period, tariff, settlement method, and consumption limit depend on the relevant regulatory category.
The most significant risk is investing on the assumption that the project is an unrestricted electricity-sales business. Unlicensed projects must be structured around eligible consumption and full regulatory compliance.
Unlicensed solar power investments in Turkey require coordinated legal advice covering energy regulation, corporate law, real estate, zoning, construction, environmental compliance, project finance, taxation, and commercial contracts.
A project may have attractive financial projections while facing serious risks relating to its consumption facility, grid capacity, call letter, land rights, technical approval, or entitlement to surplus electricity payments.
Fırat Fesih Kaya Law Office provides legal assistance to foreign investors, international companies, solar developers, industrial electricity consumers, project sponsors, lenders, EPC contractors, and renewable energy funds investing in Turkey.
Our services may include:
For a legal assessment tailored to your proposed solar investment, project acquisition, or regulatory dispute, you may contact our office. Managing the process with an experienced energy lawyer can protect the investment, prevent regulatory violations, and reduce the risk of costly project delays.
Phone: +90 312 434 22 22
Mobile Phone: +90 532 769 22 22
Email Address: info@firatfesihkaya.av.tr
Office Address: Mevlana Boulevard No:221, Yıldırım Tower No:148, 06520 Balgat, Çankaya, Ankara, Turkey
This article is provided for general informational purposes only and does not constitute legal advice. The applicable rules, project category, regulatory status, and transaction structure should be reviewed individually before any investment decision is made.