Energy Efficiency Incentives

Energy Efficiency Incentives

Incentives and supports granted to industrial enterprises conducting activities as registered under a chamber of commerce and/or industry and manufacturing any kind of goods, with at least 500 Tonnes Oil Equivalent total annual energy consumption as per calculations in accordance with subparagraph (a) of paragraph (6) of Article 9 of the Regulations on Improvement of Efficiency in Use of Energy Sources and Energy published on 27/10/2011 dated and 28097 numbered Official Gazette;

Efficiency Improvement Project (VAP) Incentives

• Project is developed in order to implement the Efficiency actions required for elimination of  inefficiency, losses and energy waste
• Projects with maximum 5 million Turkish Liras total investment excluding VAT must be supported with maximum 30% of the project price as grant.
• Industrial enterprises with at least 500 TOE total annual energy consumption (VAP), conducting activities as registered under a chamber of commerce and industry, and manufacturing any kind of goods, excluding licensed legal entities generating electricity, can apply to obtain EIP supports
• EIP incentive applications are filed to the Ministry of Energy (Department of Energy Efficiency and Environment) at any time of the year.

Voluntary Agreement Incentives

• It refers to the agreement between an industrial enterprise and the Ministry in which the enterprise guarantees to reduce its average reference energy rate by at least 10% within 3 years
• Voluntary *30% of an industrial enterprise's annual energy consumption, but maximum 1,000,000 TRY, of the contract year is paid in cash as support to the enterprise when it fulfill its commitment under a voluntary contract. Agreement
• Industrial enterprises with at least 500 TOE total annual energy consumption, conducting activities as registered under a chamber of commerce and industry, and manufacturing any kind of goods, excluding licensed legal entities generating electricity, can apply for Voluntary Agreement Incentives.
• Voluntary Agreement applications are filed to the Department of Energy Efficiency and Environment.

5TH Region Incentives

• Energy efficiency investments so as to provide at least 15% energy saving compared to the existing conditions at existing industrial manufacturing facilities with at least 500 TOE annual energy consumption can be granted the supports for 5th Region irrespective of the actual installation place of the project, upon approval of the project by the Ministry.
• The supports to be granted include exception in value added tax, exemption from customs dutty,support for employer’s contribution to the social security premiums, interest support and allocation of the investment area.
•Enterprises wishing to have their energy efficiency investment projects considered under 5th Region Incentives apply to the Ministry of Industry and Technology.