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

Every rooftop in Cyprus has a story. For years, net‑metering let your solar panels spin that story into credits on your electricity bill. But a new chapter is coming.

What’s changing and why?

The Cyprus Ministry of Energy has announced that both net‑metering and net‑billing will end on 31  December 2025, with a new self‑consumption framework starting 1 January 2026. Applications for new net‑metering contracts will only be accepted until 1  October 2025. After that, anyone without a signed contract will move to the new scheme.

So why the shift? Net‑metering credits residential solar generation at retail rates, while net‑billing credits commercial systems at wholesale rates. These schemes spurred huge growth in rooftop solar, Cyprus added 159 MW of new solar capacity in 2024, with 100 MW coming from self‑consumption systems. As the electricity market opens to competition, regulators want pricing that reflects real‑time market conditions and eases pressure on the grid.

How will the new regime work?

Under the self‑consumption framework, you’ll no longer bank kWh credits at fixed rates. Instead, you can:

1. Sign a bilateral agreement with an energy retailer, negotiating how they handle any surplus you export.
2. Join an aggregator, who combines and sells surplus electricity from many households.
3. Choose not to export at all—keeping all generation for your own use.

You’ll agree to the contract length and pricing with your chosen retailer. Existing subsidies—like the “Photovoltaics for All” program—remain available for installations through 2025.

Why does this matter?

Net‑metering allowed you to offset peak‑time consumption at one‑to‑one retail rates. The new regime ties surplus revenue to market prices. That means:

• Higher urgency to maximize self‑consumption. Storing midday generation in batteries keeps you from selling low and buying back high.
• Greater choice in how you manage your energy. Bilateral contracts can offer more flexible tariffs, but you need to read the fine print.
• Potential cost swings. Market prices fluctuate; storing your own energy could stabilize your household budget.

What should you do now?

If you’re considering solar, act before the deadlines. Applications for net‑metering are open until 1 October 2025, and contracts signed by 31 December 2025 will still enjoy current terms. If you already have a system, review your contract end date. And whether you’re new or seasoned, start thinking about battery storage. With no net‑metering safety net and evening rates set to climb, storing daytime sunshine could save you more than ever.

The sun will keep shining on Cyprus. By understanding these policy changes now, you’ll be ready to make the most of it.

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