Planning to invest in a solar power plant (GES) in Turkey? Discover the essential legal checklist covering land due diligence, EMRA licensing, grid connection, zoning, environmental permits, shareholder agreements, financing, and tax incentives in this comprehensive 2026 legal guide

Turkey has become one of Europe’s fastest-growing solar energy markets, attracting significant investment from international energy companies, infrastructure funds, institutional investors, and private equity firms. Strong solar irradiation, increasing electricity demand, and a developing regulatory framework continue to make Turkey an attractive destination for utility-scale and commercial solar power investments.

However, purchasing or developing a Solar Power Plant (GES) requires much more than evaluating sunshine levels and projected returns. Investors must conduct comprehensive legal due diligence covering land rights, licensing, grid connection, environmental compliance, corporate structure, financing, tax planning, and regulatory approvals before committing capital.

Many failed renewable energy investments are caused not by technical problems but by hidden legal risks that could have been identified before closing.

Turkey’s renewable energy market is governed primarily by the Electricity Market Law No. 6446, the Renewable Energy Law No. 5346, the Turkish Commercial Code No. 6102, the Foreign Direct Investment Law No. 4875, EMRA (EPDK) regulations, and related environmental and zoning legislation. Licensed solar projects follow the licensing process administered by EMRA, including technical evaluations and project approvals before a generation license is granted.

This 2026 Updated Legal Guide provides a practical legal checklist to help foreign investors reduce risk before investing in a solar power plant in Turkey.

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Why Legal Due Diligence Is Essential

Proper legal due diligence helps identify:

• Ownership disputes.
• Grid connection risks.
• Licensing problems.
• Environmental restrictions.
• Land use limitations.
• Tax exposure.
• Financing issues.
• Regulatory compliance risks.
• Hidden contractual liabilities.
• Corporate governance concerns.

Early legal review protects both the investment and future project financing.

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50 Legal Checks Before Investing

Corporate Structure

1. Determine whether the project should be owned by a Joint Stock Company (A.Ş.) or Limited Liability Company (Ltd. Şti.).

2. Verify the company’s incorporation documents.

3. Review the Articles of Association.

4. Confirm shareholder ownership.

5. Review board authority.

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Land Due Diligence

6. Verify title ownership.

7. Review Land Registry records.

8. Check mortgages.

9. Review easements.

10. Investigate annotations.

11. Confirm parcel boundaries.

12. Verify zoning status.

13. Determine whether agricultural land restrictions apply.

14. Review forestry restrictions.

15. Check protected area designations.

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Licensing

16. Determine whether the project falls within the licensed or unlicensed generation regime.

17. Review EMRA (EPDK) licensing requirements.

18. Verify generation license status, if applicable.

19. Review pre-license obligations where required.

20. Confirm regulatory compliance timetable.

Licensed renewable energy projects must satisfy EMRA procedures, including technical evaluation, completion of administrative permits, and issuance of the generation license before commercial operation.

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Grid Connection

21. Verify available connection capacity.

22. Review TEİAŞ or distribution company connection assessments.

23. Review the connection agreement.

24. Confirm system usage requirements.

25. Evaluate future grid expansion risks.

Grid availability is often one of the decisive commercial factors in a solar investment.

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Environmental Compliance

26. Determine whether an Environmental Impact Assessment (EIA) is required.

27. Review existing environmental approvals.

28. Verify water protection restrictions.

29. Review archaeological limitations.

30. Assess biodiversity constraints.

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Construction

31. Review EPC contract.

32. Review equipment supply agreements.

33. Review O&M agreements.

34. Review construction guarantees.

35. Review performance warranties.

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Financing

36. Review financing structure.

37. Verify lender security requirements.

38. Review mortgage documentation.

39. Review pledge arrangements.

40. Review project security package.

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Commercial Contracts

41. Review shareholder agreement.

42. Review joint venture agreement.

43. Review power purchase arrangements where applicable.

44. Review insurance coverage.

45. Review force majeure provisions.

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Tax & Incentives

46. Review corporate tax implications.

47. Verify VAT treatment.

48. Assess investment incentive eligibility.

49. Review customs exemptions.

50. Review applicable Double Taxation Agreement provisions.

Turkey offers investment incentive mechanisms that may include VAT exemptions, customs duty exemptions, tax reductions, and regional support for qualifying projects, depending on the investment and applicable legislation.

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Additional Documents Investors Should Review

Before signing any investment agreement, obtain and review:

• Trade Registry records.
• Articles of Association.
• Shareholder register.
• Land Registry extracts.
• Zoning documents.
• EIA decisions.
• Grid connection documentation.
• EMRA correspondence (where applicable).
• EPC contracts.
• Technical feasibility studies.
• Financial model.
• Insurance policies.
• Tax opinions.
• Corporate approvals.
• Existing litigation records.

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Common Legal Risks

Foreign investors frequently underestimate:

• Grid capacity limitations.
• Defective land title.
• Delays in environmental approvals.
• Weak shareholder agreements.
• Inadequate EPC protections.
• Financing restrictions.
• Tax planning issues.
• Corporate governance deficiencies.

Many of these risks can be identified through proper legal due diligence.

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Best Practices Before Investing

Before acquiring or developing a solar power project:

• Conduct comprehensive legal due diligence.
• Verify ownership of all project land.
• Confirm zoning compatibility.
• Assess licensing requirements.
• Evaluate grid connection feasibility.
• Structure shareholder relationships carefully.
• Review tax consequences.
• Negotiate robust EPC contracts.
• Obtain specialist Turkish legal advice before financial close.

Preventive legal planning significantly improves project bankability.

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Why Professional Legal Assistance Is Essential

Solar energy investments require expertise in:

• Electricity Market Law.
• Renewable Energy Law.
• Turkish Commercial Code.
• EMRA regulations.
• Environmental legislation.
• Real estate law.
• Construction law.
• Project finance.
• Corporate governance.
• International arbitration.

An experienced Turkish energy lawyer can:

• Conduct legal due diligence.
• Review land ownership and title records.
• Assess licensing obligations.
• Coordinate regulatory approvals.
• Draft shareholder and joint venture agreements.
• Negotiate EPC and financing contracts.
• Advise on investment incentives.
• Represent investors before Turkish authorities, courts, and arbitral tribunals.

Professional legal support helps reduce regulatory delays, protect project financing, and maximize long-term investment value.

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Frequently Asked Questions

1. Can foreign investors own a solar power plant in Turkey?

Yes. Foreign investors may generally establish and own Turkish companies and invest in solar energy projects under the same legal framework as domestic investors.

2. Is an EMRA generation license always required?

No. Whether a project requires a generation license depends on the project’s structure and the applicable licensed or unlicensed generation regime under Turkish electricity market legislation.

3. Why is land due diligence important?

Land-related issues such as title defects, zoning restrictions, easements, protected areas, or agricultural land limitations can significantly delay or even prevent project development.

4. Why is grid connection one of the most important legal issues?

A technically viable solar project may not be commercially feasible if sufficient connection capacity is unavailable or connection approvals cannot be obtained.

5. Are investment incentives available?

Yes. Depending on the project, investors may qualify for VAT exemptions, customs duty exemptions, tax reductions, and other investment support mechanisms under Turkey’s investment incentive framework.

6. Should investors review EPC contracts before financial close?

Absolutely. EPC contracts allocate construction risk, define performance obligations, establish completion deadlines, and specify remedies for delays or defects.

7. What is the biggest legal risk in a solar investment?

The most significant risks typically arise from inadequate land due diligence, grid connection limitations, licensing delays, weak contractual protections, and insufficient regulatory planning.

8. Why should foreign investors hire a Turkish energy lawyer?

A Turkish energy lawyer can conduct comprehensive legal due diligence, structure the investment, advise on EMRA requirements, review land and grid connection issues, negotiate EPC and financing agreements, coordinate regulatory approvals, secure available investment incentives, and represent investors throughout the project lifecycle.

Legal Support – Contact Our Renewable Energy Lawyers

Investing in a solar power plant in Turkey requires careful legal planning long before construction begins. Thorough due diligence on land, licensing, grid access, environmental compliance, financing, and corporate structure is essential to reduce risk and enhance project bankability.

Fırat Fesih Kaya and our legal team advise foreign investors, renewable energy developers, infrastructure funds, EPC contractors, banks, independent power producers, multinational corporations, and institutional investors on solar power projects, company formation, EMRA licensing, project finance, land acquisition, shareholder agreements, EPC contracts, investment incentives, regulatory compliance, international arbitration, and all aspects of Turkish energy and commercial law.

24/7 Emergency Phone: +90 532 769 22 22

Office Phone: +90 312 434 22 22

Email: info@firatfesihkaya.av.tr

Address: Mevlana Boulevard No:221, Yıldırım Tower, Office No:148, 06520 Balgat, Çankaya, Ankara, Turkey