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Turkey Sets Minimum Import Price of USD 60 per Kilogram for PV Cells

published: 2023-02-21 9:30

Various news websites have reported that the Turkish government has introduced new regulations concerning imports of PV products. Among them, the most notable one is the calculation of the custom duty for PV cells. Specifically, the rate is now calculated by weight (kilogram) instead of area size (square meter), as it had been under the previous regulatory regime. Furthermore, the minimum price for imported PV cells has been set at USD 60 per kilogram. Imported cells that priced lower than this threshold will be subject to custom duty. The new regulations will be in effect within 30 days after their publication.

According to industry analysts, these protectionist measures could reduce the market share of imported cells in Turkey. While prices of the imported cells are currently higher than the threshold, they could dip below it in the future because prices are expected to fall across the main sections of the PV industry chain due to shifts in supply-demand dynamics. Furthermore, the Turkish government could adjust the threshold further.

Industry analysts have also noted that in the case of a PV module, much of its weight comes from its frame, backsheet, and glass covering. Even assuming that the minimum import price only target cells, quotes from cell suppliers in China appear to be lower than this level. Therefore, the new regulations will have some positive effects on Turkish manufacturers for PV products. Also, it is worth noting that the Turkish government has been calculating the custom duty on PV modules by kilogram since 2020.

Currently, there are two Turkish companies are involved in the production of PV cells. They are Kaylon Solar Technologies headquartered in Ankara and Smart Solar Technologies headquartered in Izmir. The Turkish government gave TRY 7.62 billion to Kaylon Solar and TRY 3.7 billion to Smart Solar for setting up their respective production sites. Kaylon Solar is building a vertically integrated manufacturing base with a production capacity of 2GW per year. Smart Solar is also building a plant with a production capacity of 2GW per year.

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