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Taiwan’s renewable energy sector is expanding on the back of firm policy commitments, including a 2050 net-zero target and a government investment mobilisation goal of around TWD 2.2 trillion by 2025. Offshore wind and solar photovoltaics (PV) are the primary focus areas, with a long-term capacity pipeline extending to 2035.
This guide explains how Taiwan’s foreign investment framework applies to the renewables sector, what incentives are available and which entity structures suit different investor profiles, so you can assess the options and plan market entry.
- Taiwan targets 20% renewable energy generation by 2025 and net-zero emissions by 2050, driving major investments in offshore wind and solar photovoltaics.
- The incentives include R&D tax credits, investment tax credits for smart machinery and low-interest loans to attract foreign investors.
- The Negative List means most sectors, including renewables, are open to foreign investment subject to approval.
- Taiwan offers a clear long-term project pipeline, particularly in offshore wind, providing investors with visibility and planning certainty through to 2035.
The green energy market in Taiwan
Taiwan’s green energy sector is expanding rapidly, backed by strong policy support. The government aims to mobilise around TWD 2.2 trillion in green energy investment by 2025.
The primary focus areas for development are offshore wind power and solar photovoltaics. By the end of 2025, total renewable energy installations reached 22,872 MW, including 15,474 MW from solar and 4,517 MW from wind.
The government’s Green Energy Technology Industry Innovation Promotion Plan supports investment across the value chain, from equipment manufacturing to project development and maintenance.
Taiwan’s regulatory framework for foreign direct investment
Taiwan adopts an open approach to foreign investment: openness is the default, with restrictions applied only where necessary.
Foreign investments are governed by the Statute for Investment by Foreign Nationals (SIFN) and the Statute for Investment by Overseas Compatriots (SIOC). Under this framework, most investments require prior approval from the Department of Investment Review (DIR). Each application is assessed on a case-by-case basis, considering national security, market impact and competition.
A “Negative List” defines restricted sectors. Sectors not listed are generally open to foreign investors, including renewable energy, subject to standard approvals and sector-specific requirements.
Market trends and strategic sectors
Taiwan’s 2050 Net-Zero Emissions Roadmap prioritises renewable energy expansion, creating clear opportunities for foreign investors.
Offshore wind power
Taiwan is a front-runner in the Asia-Pacific region for offshore wind power. Under its zonal development policy, 1.5 GW of capacity will be released annually from 2026 to 2035, totalling 15 GW.
This long-term pipeline offers visibility for developers and supply chain partners. Major global players, such as Ørsted, Northland Power and Macquarie Group, are already active, often partnering with local firms to develop large-scale wind farms.
Solar Photovoltaics
Solar PV expansion is driven by diverse deployment models, including rooftop, agricultural and fisheries installations. The installed capacity is expected to reach 30 GW by 2030 and up to 80 GW by 2050. This growth creates opportunities in module manufacturing, project development and energy storage integration.
Tax incentives and financing for foreign investors
Taiwan offers a range of incentives to support green energy investment, primarily under the Statute for Industrial Innovation. These reduce upfront costs and improve project viability. The main tax credits are:
| Incentive | Rate | Alternative |
|---|---|---|
| R&D tax credit | Up to 15% of R&D expenditure deductible from current year corporate income tax | Up to 10% spread over three years |
| Investment tax credit (smart machinery, 5G, cybersecurity, AI, energy-saving technologies) | 5% of investment amount (NT$1m–NT$2bn) deducted from current year corporate income tax | 3% spread over three years |
Preferential financing and grants
The government provides access to capital through two main channels:
- National Development Fund loans: Low-interest loans for strategic industries including green energy, with favourable interest rates, extended grace periods and long repayment terms
- Government grants: Direct grants available through programmes such as the Global Innovation Partnership Initiatives Programme and the Taiwan Industry Innovation Platform Programme, targeting projects that introduce advanced technologies or contribute to Taiwan’s green energy ecosystem
Setting up a business entity in Taiwan
Foreign investors entering Taiwan typically choose from three entity structures, depending on their objectives.
| Entity type | Permitted activities | Liability | Best suited for |
|---|---|---|---|
| Subsidiary (company limited by shares) | Full business operations including manufacturing and project development | Separate legal entity; parent liability limited | Investors with substantive, long-term operational plans |
| Branch office | Full business operations | Parent company directly liable | Investors requiring a leaner structure with full operational capability |
| Representative office | Non-revenue functions only (e.g. market research, liaison) | Limited exposure | Investors in early-stage market assessment |
Energy projects may also require sector-specific permits, land use approvals and environmental assessments. Aligning entity choice with operational plans early helps reduce regulatory delays. For a detailed overview of set up requirements, see our guide to setting up a foreign-owned company in Taiwan.
Conclusion
Taiwan offers a well-supported and accessible green energy investment environment, driven by clear policy targets, a defined project pipeline and strong incentives. Offshore wind and solar PV present the most immediate opportunities.
For foreign investors, the key priorities are selecting the right structure, securing approvals and maximising available incentives. These decisions will directly affect tax efficiency, risk exposure and operational flexibility.
How Acclime can help with investing in Taiwan’s green energy sector
Acclime advises investors on entity selection and handles the end-to-end establishment process in Taiwan. We assess the legal and tax implications of each structure, prepare and submit registration documents, and coordinate required permits and local approvals. We also provide ongoing corporate secretarial, payroll and compliance services to ensure your Taiwan operations remain fully compliant and investor-ready. Contact us to discuss your investment strategy and practical next steps.
