Submitted:
25 August 2025
Posted:
26 August 2025
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Abstract
Keywords:
1. Introduction
2. EU Countries and Turkey Renewable Energy Status and Future Provision
- A.
- Germany
- B.
- France
- C.
- Belgium
- D.
- Netherlands
- E.
- Austria
- F.
- Swedish
- G.
- Norway
- H.
- Finland
- I.
- Spain
- J.
- Portugal
- K.
- Italy
- L.
- Greece
- M.
- Poland
- N.
- Czech Republic
- O.
- Romania and Hungary
- P.
- Turkey

3. Analysis of Renewable Energy Incentives and Policies Implemented in EU Countries and Turkey
3.1. Feed-in Tariff (FIT)
3.2. Feed-in Premium (FIP)
3.3. Tax Incentives
3.4. Certificate Supports
3.5. Investment Supports
3.6. Net Metering
3.7. Tender Incentives
3.8. Special Projects
3.9. Carbon Trading Credit Incentive
4. Regional and Country-Specific Evaluation of Incentives and Policies Implemented by the EU Region and Turkey
4.1. Western Europe
- A.
- Germany
- B.
- France
- C.
- Belgium
- D.
- Netherlands
- E.
- Austria
4.2. Northern Europe
- A.
- Sweden
- B.
- Norway
- C.
- Finland
4.3. Southern Europe
- A.
- Spain
- B.
- Italy
- C.
- Portugal
- D.
- Greece
4.4. Eastern Europe
- A.
- Poland
- B.
- Czech Republic
- C.
- Hungary
- D.
- Romania
4.5. Turkey
- Regulations made within the scope of the Unlicensed Electricity Generation Regulation in the Electricity Market emphasized the possibility of rooftop and facade solar power installations. This has shifted the focus to rooftop systems.
- The new regulation allows businesses and citizens to install projects without the need to establish a company or obtain a license.
- The sale of self-consumption surpluses from energy installed up to 10 kW for residential subscribers and up to 5 MW for all businesses and public institutions has been made possible.
- The new regulation introduced monthly production and consumption offsetting.
- The scope of unlicensed power plants has been increased to 5 MW.
- The legislative update on August 11, 2022, introduced the following regulations:
- The possibility of differentiating consumption zones and production zones has been made possible. This paves the way for consumption points without an established installation area to establish production facilities and offset them anywhere in Turkey, provided technical conditions are met.
- Production facilities will be permitted based on their consumption value, but organized industrial zones have been designated as exceptions, allowing production values higher than consumption. This encourages the development of organized industrial facilities.
5. Findings and Discussion
5.1. Comparative Analysis of Renewable Energy Current Status and Future Provisions
- Germany has the highest installed capacity with 235 GW. France follows with 136 GW, Italy with 120 GW, Spain with 118 GW, and Turkey with 116 GW.
- The country with the lowest installed capacity is Hungary with 8.5 GW installed capacity.
- The country with the highest renewable energy usage rate is Norway, at 96%. Austria follows with 86%.
- When compared to Turkey in terms of installed power capacity, Germany is ahead of Turkey with 119 GW, France with 136 GW, Italy with 120 GW, and Spain with 118 GW. The Netherlands, Hungary, and Austria are behind Turkey by 71 GW, 88 GW, and 107.5 GW, respectively. This is shown in Table 8.
| Installed Renewable Energy Capacity (2024, GW) | |||
|---|---|---|---|
| Country | Installed Capacity (GW) | Rank | Compared to Turkey |
| Germany | 235 | 1 | +119 GW |
| France | 136 | 2 | +20 GW |
| Italy | 120 | 3 | +4 GW |
| Spain | 118 | 4 | +2 GW |
| Turkey | 116 | 5 | — |
| Netherlands | 45 | 6 | -71 GW |
| Austria | 28 | 7 | -88 GW |
| Hungary | 8. May | 16 | -107.5 GW |
- The Netherlands, Austria, Norway, and Finland are countries with a short-term goal of switching to 100% renewable energy.
- One of the most important renewable energy targets of European countries is the goal of becoming carbon-neutral.
- When renewable energy incentives were ranked in terms of efficiency, Turkey received 36 points out of 50, ranking 7th. The efficiency ranking was created by considering the incentives implemented, installed capacity, and renewable energy capacity. This is shown in Table 9.
- In European countries, short-term plans generally refer to the years 2030-2035, while long-term plans refer to the years 2045-2050.
- Turkey ranks 7th among selected countries in terms of achieving its renewable energy target. It has a 57.5% achievement rate.
- When EU countries and Turkey are evaluated in terms of structural and market barriers, Turkey is at a disadvantage compared to EU countries due to its low market forecasts and high inflation. However, these disadvantages have been mitigated through domestic production incentives. This situation is shown in Table 10.
- Another prominent long-term goal is green hydrogen targets. Detailed comparison results are shown in Table 11.
- Germany, Sweden, and the Netherlands have consistent, multi-level incentives. Their high level of policy development ensures a high level of renewable energy.
- Renewable energy tenders and green certificate incentives are widely used throughout EU countries. However, Turkey does not implement a green certificate incentive system.
- EU countries not only promote renewable energy sources through these certificate programs but also manage their electricity sales markets through these regulations.
- Turkey maintains a moderate-to-medium position in its renewable energy policies.
- Turkey is focused on large-scale renewable energy projects after 2022. While this trend increases the pace of installation, it also pushes medium-sized investors out of the sector. This, in turn, reduces renewable energy penetration and consumer penetration.
- When Turkey is compared in terms of installed capacity, renewable rate, and 2030 targets, the findings are shown in Table 12 with their pros and cons.
- Different incentive policies are implemented in the EU and Turkey. These incentive policies vary depending on the countries’ economic situation, climatic conditions, development and education levels, and regional characteristics.
- Regionally, Western and Northern Europe, due to their higher levels of economic development, have developed more complex, structured, and highly incentive-based policies. In Southern and Eastern Europe, simpler, more direct, and unstructured incentives are preferred.
- An examination of the short- and long-term policies of EU countries and Turkey reveals that Turkey is more determined than Poland and Hungary. However, Germany exhibits more moderate policies than France and Portugal. This situation is shown in Table 14 with all its outputs.
- Due to the high solar potential in Southern European countries, there has been a tendency towards large-scale projects.
- Tax incentives and net metering incentive systems have been implemented in Northern Europe due to low insolation levels.
- Western European energy markets have greater freedom than Eastern Europe. Therefore, markets increase the effectiveness of incentives. Eastern Europe, on the other hand, has less freedom and more publicly supported progress.
- When examining net metering for individual residential use, Turkey ranks low compared to other European countries. Turkey’s low individual use is one of the negative factors affecting its installed renewable energy capacity. This situation is shown in Table 15.
- When examining the EU region in terms of installed renewable energy, Germany leads the pack. This is due to the breakdown of renewable energy incentives and the effective implementation of multiple incentive systems. The high level of rooftop system installation is due to the prevalence of detached housing. Furthermore, the high level of industrial development increases the rate of installation on industrial rooftops. Compared to Turkey, Turkey adopted the incentive system late and has a lower level of economic development. Because the housing type is mass housing, rooftops are not suitable for domestic consumption. The implementation of incentive systems and incentive amounts are also lower than in Germany.
- Turkey’s incentive structure is at a medium level of complexity. In this sense, Germany, France, and the Netherlands have more complex incentive systems than Turkey. Hungary and Poland, on the other hand, implement less comprehensive incentive methods. This is illustrated in Table 16.
- FIT, Green Certificates, and tax incentives are widely implemented incentive systems throughout the European Union member states. In Turkey, tax incentives and FIT are effectively implemented. However, market activity and high inflation rates negatively impact predictable market conditions in Turkey, and renewable energy incentives are also negatively impacted by these factors.
- Romania, Denmark, and Hungary implement the Carbon Trading Credit system. This incentive system accelerates investments by directing commercial investors to renewable energy.
- Hungary is the European country with the lowest renewable energy rates and investments. One of the analyzed reasons for this is the lack of effective incentive systems. Targets similar to the 2030 and 2050 targets implemented throughout Europe are not implemented in this country. In this respect, Hungary lags behind both EU countries and Turkey.
- EU countries implement short- and long-term incentives. Achieving Carbon Neutrality has been a vision for almost all member states in their long-term goals. Another incentive area highlighted by long-term goals is green hydrogen production. Countries without long-term goals also show low renewable energy installation rates.
- In Turkey, short- and long-term plans include increasing the renewable energy installation rate and achieving Carbon Neutrality targets.
- Tax incentives are available in almost all EU countries and Turkey. These incentives primarily include VAT exemptions and income tax exemptions.
- In Turkey, large-scale renewable energy facilities are incentivized through YEKA project incentives. The most important feature of YEKAs is that purchase guarantee prices match market prices, reducing the public economic burden.
5.2. Policy Recommendations
- Green bonds, tax deductions, and low-interest loans should be effectively offered to investors, and their effectiveness should be monitored.
- Microgrids based on the principle of decentralized on-site production should be encouraged.
- Rooftop photovoltaic production facilities should be used to bring production to the point of consumption. This will reduce losses and the need for transmission line and transformer investments.
- R&D efforts should be increased for measurement, and digital metering and net metering reforms should be enhanced.
- The effectiveness of established policies should be continuously monitored, with increased bureaucratic collaboration and integration oversight.
- Market foresight should be enhanced by reducing policy changes. This will create a predictable market environment for investors.
- Domestic production should be supported, and equipment incentives should be provided. This will limit foreign-dependent production.
6. Conclusions
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| Country | System Description | Benefits | Disadvantages | References |
|---|---|---|---|---|
| Germany | Germany rapidly expanded its PV capacity in the 2000s thanks to the FiT. | Investor security has been ensured, and the market has grown. | Burden on the public budget. | [35,36,37,38,39] [40,41,42,43,44] |
| France | FiT was particularly effective in rooftop systems. | Suitable for individual producers. | Limited to medium and large-scale projects. | [35,36,37,38,39] [40,41,42,43,44] |
| Italy | Conto Energia achieved PV growth, and Germany became a global leader after 2010. | Rapid capacity expansion. | System changes following cost increases. | [35,36,37,38,39] [40,41,42,43,44] |
| Country | System Description | Benefits | Disadvantages | |
|---|---|---|---|---|
| Spain | With the transition to FiP after FiT, growth continued, and cost efficiencies were achieved. | Compatibility with market dynamics. | Complicated administration compared to FiT. | [45,46,47,48,49,50,51,150,151,152,153,154,155] |
| Netherlands | The SDE++ program brought stability to the sector and reduced costs. | Low public costs. | Less attractive to small producers. | [45,46,47,48,49,50,51,150,151,152,153,154,155] |
| Sweden | Thanks to FiP, renewable energy production increased, and system flexibility was achieved. | Integration into the certification system. | Impact of fluctuating market prices. | [45,46,47,48,49,50,51,150,151,152,153,154,155] |
| Types of Incentives Applied | Feed-in tariffs, premium guarantees, investment supports, and certificate supports were provided. |
| Basic Principles of Incentives | Incentives were provided, prioritizing small and medium-sized projects. |
| Main Features | FIT implementation became the main incentive method. |
| Main Differences | Economic and environmental factors were incentivized together through projects such as SDEE+. |
| Types of Incentives Applied | Green certificates, tax incentives, net metering |
| Basic Principles of Incentives | Small and medium-sized projects connected to local and regional grids, connected to distribution lines. |
| Main Features | Small-scale project support has been provided, and green certificate-focused incentives have been provided in collaboration with Sweden and Norway. |
| Main Differences | Incentives for large projects are lower compared to other regions. Due to low population density and residential structures, a focus has been placed on micro-power plants. |
| Types of Incentives Applied | FIT, FIP |
| Basic Principles of Incentives | Maximizing energy potential |
| Main Features | In Italy, solar potential was effectively utilized through the Conto Energia program. |
| Main Differences | Cost-effectiveness incentives were also on the agenda in Spain and Portugal. |
| Types of Incentives Applied | Green Certificates, Investment Supports, Grants, FIT, Carbon Trading System | [86,87,88,150,151,152,153,154,155] |
| Basic Principles of Incentives | Developing renewable resources by prioritizing the PV sector | [86,87,88,150,151,152,153,154,155] |
| Main Features | Poland provides domestic PV production with green certificates. | [86,87,88,150,151,152,153,154,155] |
| Main Differences | The Czech Republic and Hungary provide renewable incentives by supporting SMEs. | [86,87,88,150,151,152,153,154,155] |
| Renewable Energy-Based Production | Applicable Prices (USD cents/KWh) |
| Facility Type | 7,3 |
| Hydroelectric Production Facility | 7,3 |
| Wind Energy-Based Production Facility | 10,5 |
| Geothermal Energy-Based Production Facility | 13,3 |
| Biomass Energy-Based Production Facility | 13,3 |
| Facility Type | Domestically Produced | Local Contribution Supplement USD cent/KWh |
|---|---|---|
|
Photovoltaic Energy |
0,8 | |
| 1) PV Panel Integration and Solar Structural Mechanics Manufacturing | 1,3 | |
| 2) PV Modules | 3,5 | |
| 3) Cells that Make Up the PV Module | 0,6 | |
| 4) Inverter | 0,5 |
| Renewable Incentive Effectiveness Ranking (Score out of 50) | |||
|---|---|---|---|
| Country | Composite Score | Rank | Relative to Turkey (36) |
| Germany | 49 | 1 | Much higher |
| Netherlands | 44 | 2 | Higher |
| Austria | 43 | 3 | Higher |
| France | 42 | 4 | Higher |
| Spain | 41 | 5 | Higher |
| Portugal | 41 | 5 | Higher |
| Italy | 40 | 6 | Slightly higher |
| Turkey | 36 | 7 | — |
| Poland | 34 | 8 | Lower |
| Hungary | 33 | 9 | Lower |
| Romania | 30 | 10 | Lower |
| Structural and Market Barriers | |||||
|---|---|---|---|---|---|
| Country | Collective Housing Issue | Inflation Risk | Market Predictability | Local Production Incentive | Compared to Turkey |
| Germany | Low | Low | High | ✖ | More stable |
| France | Medium | Low | Medium-High | ✖ | Stronger regulation |
| Turkey | High | High | Medium-Low | ✔ | — |
| Poland | Medium-High | Medium | Medium-Low | ✖ | Similar challenges |
| Hungary | High | Medium | Low | ✖ | Weaker structure |
| Netherlands | Low | Low | High | ✖ | Better environment |
| Countries | Total Installed Capacity(GW) | Renewable Rate(%) | Short Term Renewable Target (%) | Future Provision Date | Long-Term Future Provision Targets |
|---|---|---|---|---|---|
| Germany | 235 | 56 | 80 | 2035-2045 | Carbon Neutral |
| France | 136 | 22 | 40 | 2050 | Carbon Neutral |
| Belgium | 22 | 52 | 42 | 2030-2050 | Carbon Neutral |
| Netherlands | 45 | 49 | 100 | 2030-2050 | Carbon Neutral |
| Austria | 28 | 86 | 100 | 2045 | 100% Renewable Energy |
| Sweden | 47 | 81 | 90 | 2030-2045 | Carbon Neutral |
| Norway | 43 | 96 | 100 | 2050 | Carbon Neutral |
| Finland | 18 | 67 | 100 | 2035-2050 | Carbon Neutral -Green Hydrogen |
| Spain | 118 | 67,2 | 81 | 2030 | Green Hydrogen |
| Portugal | 20,7 | 76 | 85 | 2030 | - |
| Italy | 120 | 36 | 65 | 2030 | - |
| Poland | 65 | 16,9 | x | 2030 | 22 GW Renewable Capacity Increase |
| Greece | 34,7 | 48,5 | x | 2030 | Increasing Renewable Energy Capacity to 28 GW |
| Czech Republic | 22 | 15 | x | 2030 | Eliminating Coal Use |
| Romania | 24 | 45 | x | 2030 | 6.9 Renewable Capacity Addition |
| Hungary | 8,5 | 15 | x | 2030 | Movement to Green and Carbon-Free Resources |
| Turkey | 116 | 57,5 | 60 | 2030-2053 | Carbon Neutral |
| Overall Renewable Capacity and Target Achievement | ||||
|---|---|---|---|---|
| Country | Installed Capacity (GW) | 2024 Renewable Share (%) | 2030 Target (%) | Compared to Turkey (57.5%) |
| Germany | 235 | 56 | 80 | Similar (but more ambitious) |
| France | 136 | 34 | 40 | Lower performance |
| Italy | 120 | 40 | 65 | Lower but accelerating |
| Spain | 118 | 44 | 81 | Higher target |
| Turkey | 116 | 57.5 | 60 | — |
| Austria | 28 | 86 | 100 | Higher share, more ambition |
| Norway | 43 | 96 | 100 | Much higher achievement |
| Poland | 47 | 16. Eyl | 45 | Much lower |
| Hungary | 8.May | 15 | 50 | Much lower |


| Long-term Renewable Targets | |||
|---|---|---|---|
| Country | 2030 Target (%) | 2050 Target | Compared to Turkey (60% by 2030) |
| Germany | 80 | Carbon neutrality 2045 | More ambitious |
| France | 40 | Carbon neutrality 2050 | Less ambitious (2030) |
| Portugal | 85 | Full decarbonization | More ambitious |
| Turkey | 60 | Carbon neutrality 2053 | — |
| Poland | 45 | TBD | Less ambitious |
| Hungary | 50 | Carbon-free electricity | Similar |
| Country | Individual Housing Prevalence | Net Metering Implementation | Compared to Turkey |
|---|---|---|---|
| Austria | High | Fully integrated | Much better |
| Spain | Medium | Strong support | Better |
| Germany | High | Municipal-scale systems | Better |
| Turkey | Low (collective housing) | Revised 2023 | — |
| Poland | Low | Limited | Similar |
| Hungary | Low | Developing stage | Similar |
| Policy Complexity and Incentive Mechanisms | |||
|---|---|---|---|
| Country | Incentive Structure Complexity | Key Incentives | Compared to Turkey |
| Germany | High | FiT, Auctions, Carbon Trading | More diversified |
| France | Medium-High | Offshore Tenders, Tax Exemptions | More project-based |
| Netherlands | High | SDE++, CO2 Metrics, Loans | More market-based |
| Turkey | Medium | FiT, YEKA, Tax Incentives | Reference |
| Poland | Low | Basic FiT, Grants | Less diversified |
| Hungary | Low | Tax Relief, Public Grants | Less market-focused |
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