Turkey Solar Rooftop EPC and Leasing Market

Turkey Solar Rooftop EPC and Leasing Market Overview

• The Turkey Solar Rooftop EPC and Leasing Market is valued at USD 1.7 billion, based on a five-year historical analysis. This growth is primarily driven by surging electricity demand, declining photovoltaic system costs, the government’s robust renewable energy targets, and a strong policy push for distributed generation and net metering. The market is further supported by the rapid expansion of Turkey’s total solar installed capacity, which doubled from 9.7 GW to nearly 20 GW in recent years, and by the increasing adoption of rooftop systems among residential and commercial users .
• Istanbul, Ankara, and Izmir remain the dominant cities in the market due to their high population density, significant commercial and industrial activities, and proactive municipal policies that encourage solar adoption. These cities have attracted substantial investments in distributed solar infrastructure, making them central to the country’s rooftop solar expansion .
• The Regulation on Energy Performance in Buildings (Binalarda Enerji Performans? Yönetmeli?i), issued by the Ministry of Environment, Urbanization and Climate Change in 2023, requires all new residential buildings to incorporate renewable energy systems, including solar photovoltaic installations, to meet a portion of their energy needs. The regulation sets operational thresholds for energy efficiency, mandates compliance certification for new construction, and aims to accelerate the adoption of rooftop solar across Turkey’s housing sector .

Turkey Solar Rooftop EPC and Leasing Market Segmentation

By Type:The market is segmented into Residential Solar Rooftop Systems, Commercial Solar Rooftop Systems, Industrial Solar Rooftop Systems, Hybrid Solar Systems, Off-Grid Solar Solutions, Solar Leasing Options, and Community Solar Projects. Among these, Residential Solar Rooftop Systems are currently leading the market, driven by simplified net metering, increased consumer awareness, and government incentives that make solar adoption more accessible for homeowners. The commercial segment is also expanding, as businesses seek to hedge against rising energy costs and comply with sustainability mandates. Hybrid and storage-integrated systems are gaining traction, particularly in regions with grid constraints or high self-consumption needs .

By End-User:End-user segmentation includes Residential, Commercial, Industrial, and Government & Utilities. The Residential segment is the largest contributor, reflecting the rapid uptake of rooftop solar among homeowners seeking energy independence and cost savings. The commercial segment is expanding, driven by businesses aiming to reduce operational expenses and comply with environmental standards. Industrial users are increasingly investing in rooftop and hybrid systems to mitigate energy price volatility, while government and utility initiatives focus on integrating distributed solar into broader energy strategies .

Turkey Solar Rooftop EPC and Leasing Market Competitive Landscape

The Turkey Solar Rooftop EPC and Leasing Market is characterized by a dynamic mix of regional and international players. Leading participants such as Kalyon PV, Fortis Energy, Europower Solar (Europower Enerji A.?.), Çal?k Enerji, Asunim Group, Eko Renewable Energy Inc., GO Enerji, Halk Enerji Yat?r?mlar? Üretim ?n?aat Taahhüt Ticaret ve Sanayi A.?., HT Solar Energy J.S.C., CW Enerji, Ankara Solar A.?., Alfa Solar Enerji, Solar Power Solutions Pvt Ltd, Zorlu Enerji Elektrik Üretim A.?., and Aksa Energy contribute to innovation, geographic expansion, and service delivery in this space.

Turkey Solar Rooftop EPC and Leasing Market Industry Analysis

Growth Drivers

• Increasing Energy Demand:Turkey's energy consumption reached approximately330 terawatt-hours (TWh)in future, with projections indicating a rise to340 TWhin future. This growing demand is driven by urbanization and industrial expansion, necessitating alternative energy sources. The Turkish government aims to increase renewable energy's share toat least 30% of total energy consumption in future, further propelling the solar rooftop market as a viable solution to meet this escalating energy need.
• Government Incentives for Renewable Energy:The Turkish government has allocated over2 billion Turkish Lira (approximately $70 million)in future for renewable energy projects, including solar rooftop installations. This financial support includes grants, subsidies, and favorable feed-in tariffs, which encourage both residential and commercial investments in solar energy. Such incentives are crucial in reducing the financial burden on consumers and fostering a conducive environment for solar energy adoption.
• Technological Advancements in Solar Energy:The solar technology landscape in Turkey has seen significant advancements, with the efficiency of photovoltaic (PV) panels improving byabout 20% over the past five years. In future, the average efficiency of solar panels is expected to reach21%, enhancing energy output and reducing payback periods for installations. These technological improvements are vital in making solar energy more accessible and economically viable for consumers, driving market growth.

Market Challenges

• High Initial Investment Costs:The average cost of installing a solar rooftop system in Turkey is approximately1,000 Turkish Lira (around $35) per watt. For a typical residential system of 5 kW, this translates to an upfront investment of about50,000 Turkish Lira (approximately $1,750). Such high initial costs can deter potential customers, particularly in a market where many consumers are still recovering from economic fluctuations and inflationary pressures.
• Regulatory Uncertainties:The Turkish solar market faces regulatory challenges, with frequent changes in policies and incentives. For instance, amendments to the Renewable Energy Law in future created confusion regarding grid connection processes and licensing requirements. This uncertainty can hinder investment decisions, as stakeholders may be reluctant to commit resources without a stable regulatory framework, impacting the overall growth of the solar rooftop sector.

Turkey Solar Rooftop EPC and Leasing Market Future Outlook

The future of the Turkey solar rooftop EPC and leasing market appears promising, driven by increasing energy demands and supportive government policies. As urban areas expand, the need for sustainable energy solutions will intensify, encouraging further investments in solar technologies. Additionally, the integration of smart technologies and energy storage solutions will enhance system efficiency and reliability, making solar energy more attractive. The market is poised for growth as stakeholders adapt to evolving consumer preferences and technological advancements.

Market Opportunities

• Expansion of Urban Areas:Turkey's urban population is projected to reachapproximately 78%in future, creating a significant opportunity for solar rooftop installations. As cities grow, the demand for sustainable energy solutions will increase, making solar rooftops an attractive option for new residential and commercial developments, thereby driving market growth.
• Development of Smart Cities:The Turkish government has initiated several smart city projects, with investment exceeding1.5 billion Turkish Lira (approximately $53 million)in future. These projects aim to integrate renewable energy sources, including solar rooftops, into urban infrastructure, presenting a substantial opportunity for EPC and leasing companies to participate in the transition towards sustainable urban living.