The End of Net‑Metering in Cyprus: What Homeowners Need to Know

Cyprus has experienced a solar energy boom over the past decade, driven by strong government incentives and the simplicity of the net metering model. Tens of thousands of households invested in photovoltaic (PV) systems to reduce electricity bills and protect themselves from rising energy costs.

As of 1 January 2026, however, Cyprus officially enters a new phase of solar policy. Traditional net metering is no longer available for new applicants, and the long-running “Photovoltaics for All” subsidy scheme has come to an end. In its place, the Ministry of Energy is preparing to launch a new national programme that fundamentally changes how solar energy is valued and used.

End of “Photovoltaics for All” and Net Metering

The “Photovoltaics for All” scheme officially expired on 31 December 2025, closing the door on net metering for new solar installations.

Under the net metering model, homeowners were able to export excess electricity to the grid and receive kilowatt-hour (kWh) credits. These credits could later be used to offset electricity consumption on a one-to-one basis at retail value, making solar extremely attractive and financially predictable.

From 1 January 2026, this model no longer applies to new applicants.

What Replaces Net Metering: Net Billing

The upcoming national programme introduces net billing instead of net metering.

Under net billing:

• Electricity exported to the grid is credited at real-time market value
• Electricity imported from the grid is charged at full retail price
• Exported energy can no longer be “banked” as kWh credits

This means homeowners are no longer protected from price differences between buying and selling electricity. As a result, self-consumption becomes far more important than exporting excess energy.

Mandatory Battery Storage for Subsidies

One of the most significant changes in the new solar policy is the introduction of mandatory battery storage.

To qualify for state grants under the upcoming programme:

• Solar PV systems must include an energy storage system
• Battery size and subsidy amounts are expected to be announced shortly
• Funding will come from national resources, not EU-funded schemes

The aim is to:

• Reduce grid congestion during peak solar production hours
• Minimise energy dumping
• Improve grid stability
• Encourage households to consume their own solar energy

While batteries increase upfront costs, they are now central to making solar financially viable under net billing.

Solar Adoption in Cyprus by District

Solar adoption across Cyprus has already reached impressive levels. Over 88,000 households and small businesses now have photovoltaic systems installed nationwide.

Installed PV Systems by District