Solar Panel VAT in Turkey: What You Need to Know About Taxes

One of the most frequently asked questions when planning a rooftop system is this: what is the solar panel VAT rate, and is there a reduced rate? According to the verified official sources we have as of October 2026, solar energy systems are subject to the general VAT rate, and the general rate is 20%. We could not find an official text showing that a reduced rate or exemption was introduced for panels and inverters in 2024-2026. For this reason, confirmation from an accountant is essential before a final calculation.

Solar panel VAT rate: the official framework

The general VAT rate was raised from 18% to 20% by Presidential Decision No. 7346 (Official Gazette 07.07.2023/32241, effective 10.07.2023). According to the private ruling of the Revenue Administration (GİB) dated 24.09.2020, solar energy systems are subject to the general rate because they are not included in lists (I) and (II) of Council of Ministers Decision No. 2007/13033. At that date the general rate was 18%; today the equivalent is 20%.

This ruling says the supply of the system is subject to the general rate; in other words, unless there is a provision to the contrary, the total of the panels, inverter, mounting system and installation is invoiced at the general rate. However, private rulings are not binding for every specific case and legislation can change. For this reason we recommend confirming the latest situation with your accountant or the Revenue Administration.

Different rates you hear about in the market

From time to time it is claimed on the internet and on marketing pages that a very low VAT rate applies to solar systems. We could not verify an official basis for these claims; the GİB ruling we have applies the general rate. When you receive an invoice, always check the VAT rate and the type of supply; if a different rate is applied, ask in writing for the article of legislation it is based on.

The reason is simple: an invoice issued with the wrong rate can later cause problems in a tax inspection for both the seller and the buyer. If you are making a commercial investment, whether VAT can be deducted also depends on the accuracy of this invoice.

Solar VAT exemption: who can benefit?

The exemption in Article 13/j of the VAT Law is, by its scope, limited to certain supplies made to Organized Industrial Zones (OSB), Small Industrial Estates (KSS) and their economic enterprises. This exemption does not cover homes. In other words, relying on this exemption for a system installed on the roof of a villa or apartment building would not be correct.

We base this information on the 2019 regulation (Official Gazette 18.01.2019/30659, Law No. 7161 Art. 17); we have not separately checked later amendments. If you are a business operating in the Antalya OSB, clarify the full scope of the exemption and the items outside its scope with your accountant.

How does VAT affect cost?

A solar energy system's cost consists of several items: panels, inverter, mounting system, cabling and protection equipment, labor, project and application work, and a battery if any. VAT is added to the invoice total of these. For this reason, when comparing two quotes, you need to compare amounts excluding VAT and including VAT on the same basis; if one is given exclusive and the other inclusive, the amounts will mislead.

We give no TL amount in this article, because price is determined by system capacity, equipment brand, roof type and battery preference. You can find the cost items and influencing factors in our article on the cost of a home solar energy system, and the pricing logic specific to Antalya in our article on solar panel prices.

Questions to ask about VAT when getting quotes

• Is the quote inclusive or exclusive of VAT? Which rate is applied?
• Will the panels, inverter and installation be invoiced within the same invoice?
• In whose name will the invoice be issued: an individual, a company, an OSB business?
• How will the battery, monitoring system and maintenance contract be shown for VAT purposes?
• How is VAT reflected separately in the payment plan?

The VAT effect with a simple example

Do not read the figures as real prices; let us take a hypothetical quote of 100 units just to show the logic. If the general rate is 20%, the VAT-inclusive amount is 120 units. If another company gives a VAT-inclusive quote of 115 units, the VAT-exclusive equivalent of this quote is about 95.8 units. At first glance the difference between the two quotes seems to be only 5 units, but if the scope, equipment and warranty differ, this comparison carries no meaning.

The numbers in this example are neither units of currency nor real prices. The aim is this: compare quotes with the same scope, the same VAT assumption and the same equipment list. In different projects in Antalya such as a villa roof, a hybrid system with a battery or a greenhouse roof, the equipment list varies a great deal; so before VAT, it is the scope that needs to be equalized.

VAT and investment planning for businesses

In a commercial rooftop solar investment, VAT directly affects cash flow. Under general tax legislation, taxpayers can, under certain conditions, deduct the VAT they bear; however, the scope, timing and how any carried-forward VAT will be used vary with the company's situation. For this reason you need to build the investment plan of a hotel, factory or cold storage facility together with your accountant.

In Antalya, solar investment often comes up for high-consumption businesses such as hotels, greenhouses, packing facilities and OSB businesses. For these businesses, VAT, financing and calculation are treated as a whole. For a detailed approach, take a look at our article on rooftop solar investment for businesses.

On the financing side, banks offer solar loans; but because rates and terms are set by project, we write no figure here. Get interest and term information directly from banks. For the general framework, you can read our article on solar energy financing.

The tax dimension of selling electricity

The treatment of surplus energy is a separate subject and requires a separate calculation. Under the regulations, no generation or sale limit applies to facilities tied to a residential subscription; surplus energy is assessed at the single-rate active energy unit price of the relevant tariff. How the income you receive is taxed can differ according to your subscription type and activity; making a generalization here would be wrong. For regulatory detail, see our article on selling surplus electricity.

Electricity tariffs can also change. EPDK (Turkey's Energy Market Regulatory Authority) raised retail sales prices from 4 April 2026; the increase was 25% for residential use, 5.8% for industry and 24.8% for agricultural activity. In a payback calculation, VAT, the tariff and the self-consumption ratio need to be considered together.

A step-by-step approach to solar panel VAT

1. Ask for quotes separately excluding VAT and including VAT.
2. Decide in whose name the invoice will be issued: residential, company or OSB business?
3. Get written confirmation of the current rate and any deduction possibility from your accountant.
4. Have the equipment, labor and service items shown separately on the invoice.
5. Legally assess whether to add a "if the legal rate changes" clause to the contract, in case legislation changes.

Another point to watch is timing. On large projects the payment plan can be spread over several stages; separate invoices may be issued for the advance, equipment delivery and commissioning. It matters for both your and the seller's tax compliance that the rate and items are consistent on every invoice. Having your accountant see the project calendar from the start reduces possible surprises.

At the quotation stage Solar Nexo prepares a line-by-line cost breakdown and refers you to your accountant on VAT; it does not provide tax advice. For a survey and quote, you can reach us.

Conclusion

According to the official sources we have, the current framework for the solar panel VAT rate is the general rate; today 20%. We could not verify an official basis for claims of a lower rate or an exemption, and the 13/j exemption is limited to OSBs and KSSs. Because legislation can change, get written confirmation from your accountant before the invoice and investment decision.

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