Net billing Cyprus replaced net metering for all new solar systems on 1 January 2026. Cyprus also ended its solar panel subsidies on the same date. This guide explains what net billing Cyprus actually is, why the rules changed, what’s happening in 2026 since the switch, and what homeowners and businesses should do now.
Net billing is the way Cyprus now compensates you for surplus solar energy. When your panels produce more than you’re using, the extra electricity goes to the grid and you get paid for it — but at a wholesale rate, which is lower than the retail rate you pay to buy electricity back. Energy sold and energy bought are calculated separately on your bill.
Under the old net metering scheme, exports were credited 1:1 — every kWh you sent to the grid was offset by a kWh you could draw back later. Under net billing Cyprus, that 1:1 trade is gone. The result: you get less for surplus exports and more for using your own solar directly. A battery is no longer optional if you want to maximise savings — it’s the way you keep your own kWh at full retail value rather than swapping them for wholesale value.
The short version: Net billing Cyprus rewards self-consumption and storage. Without a battery, every kWh you export at lunchtime is one you re-buy at higher cost in the evening — and you lose the difference.
Three reasons came together at the same time:
1. Grid overload & curtailment. The smart-meter rollout combined with surging PV uptake created a real problem. About 145 GWh of surplus solar was rejected by the Cyprus grid in early 2025— energy nobody could absorb. Net billing Cyprus is designed to reward storage instead of dumping that surplus into the grid.
2. End of the PV subsidy era. The “Photovoltaics for All” scheme and the related RES Fund grants for residential solar closed for new applications on 31 December 2025. The Energy Minister told the Cyprus News Agency in September 2025 that an earlier August 2025 cut-off was extended to year-end after public requests, but the final deadline held.
3. EU policy alignment. Cyprus was the last EU country still operating a net metering scheme. The shift brings Cyprus into line with the rest of Europe, which has already moved to self-consumption and storage-based incentives.
Three developments since 1 January 2026 are worth knowing about — they affect both new and existing solar customers in Cyprus.
When the grid is overloaded with solar at midday, the EAC can remotely disconnect solar systems to keep the network stable. CERA confirmed in March 2026 that operators have the right to do this “without limitation and at any time” if it’s needed to prevent overloads. The fix is the same as the policy intent: a battery, so the energy you would have exported gets stored on your own property instead of lost.
If you’re an existing net metering customer (not new net billing), the EAC began clearing accumulated surplus credits in February 2026 on a 36-month rolling basis. Some households who’d built up substantial credits saw them wiped to zero. This doesn’t directly affect new net billing Cyprus customers, but it’s a reminder that storing your own energy in a battery on your own property is far safer than relying on the grid to “save it for you.”
According to industry tracking in early 2026, more than 88,000 households and small businesses in Cyprus now have photovoltaic systems installed — over 81,000 of them under the now-closed net metering scheme. The transition to net billing Cyprus affects every solar installation going forward.
Here’s where we have to be honest about something the press got ahead of itself on.
In late 2025, government announcements suggested that homeowners installing solar with battery storage from January 2026 would qualify for new battery subsidies under the net billing framework. As of May 2026, however, the RES Fund website shows no support schemes currently open for applications. The battery subsidy programme has been talked about — battery sizes and grant amounts were expected to be announced — but the specific scheme has not yet launched.
What this means in practical terms: don’t plan your project around a subsidy that isn’t currently available. Build the business case on what net billing Cyprus pays you in real wholesale terms today, plus the savings you make from self-consumption. If a grant becomes available later, that’s a bonus on top — not the foundation of your investment. We track current grant status and update it when schemes open or close.
Five practical steps for new solar projects in 2026:
If your solar system was already connected under net metering before 31 December 2025, your existing terms continue until your contract expires. You don’t suddenly get switched to net billing.
However, the 36-month credit reset rule that started in February 2026 applies to your account. If you’ve been banking a lot of unused surplus credits, talk to us about the best way to actually use them — for example by adding a battery to capture and shift the energy yourself, rather than letting unused credits expire.
You also have the option to switch to net billing Cyprus voluntarily if you find it more financially advantageous. For most existing net metering customers with significant accumulated surplus, staying on the old contract until it expires is the better choice — but every situation is different.
Send us your last EAC bills and we’ll model the numbers honestly — what to install, what it’ll save you, and the realistic payback time under the new rules.
We’ve been designing and installing solar systems in Cyprus for over a decade — through net metering, through the policy transition, and now through net billing. The rules around solar in Cyprus have been moving fast, and the 2026 changes won’t be the last. Our job is to design systems that pay off regardless of which way the regulations evolve.
Net billing Cyprus isn’t the end of solar savings — it’s the end of “set-and-forget” solar. The new system rewards homeowners and businesses who think about when they use electricity, who pair their panels with a battery, and who size their system to match real consumption. For people who can’t put solar on their own roof, virtual net billing in Cyprus opens up off-site installations with the same accounting framework.
The technology is mature, the rules are now clear, and the economics still work — they just work differently than they used to. Get in touch for a free consultation tailored to your property, your consumption pattern and your budget.
FAQ’s
Net billing took over from net metering for all new solar applications on 1 January 2026. Any system applied for before 31 December 2025 remained under the old net metering rules.
Existing net metering systems continue under their original contracts until those contracts expire. They aren’t automatically moved to net billing. The exception is the 36-month credit reset that started in February 2026 — accumulated unused export credits are now cleared on a rolling 36-month basis. If you have significant credits banked, talk to us about converting them into real value before the next reset.
No, but without one your savings drop substantially. Every kWh of surplus you export goes at wholesale rates, while every kWh you buy back at night costs you retail rates. A battery captures your daytime surplus and discharges it for you in the evening, keeping the value at retail level. It’s the single biggest factor in whether net billing Cyprus pays off for you.
The export rate is determined by market dynamics and CERA, not by a fixed long-term tariff. It will vary over time depending on Cyprus electricity market prices and policy decisions. Always check the current CERA guidance before assuming a specific number.
As of May 2026, the RES Fund shows no schemes currently open for applications. The PV subsidy that ran in 2024–2025 closed at year-end. A battery subsidy programme tied to the new net billing framework has been announced in principle but has not yet launched. We track current grant availability and update it as schemes open or close.
Yes — Cyprus’s framework allows for “virtual” net billing where solar panels at one site credit a consumption bill at a different site. This is exactly the right setup for apartment owners who don’t have access to a suitable rooftop. We cover this in detail on our virtual net billing in Cyprus page.
It can happen. CERA confirmed in March 2026 that operators may remotely limit or disconnect solar systems “without limitation and at any time” if it’s needed to keep the grid stable. With more solar coming online every month, this is going to become more common. The protection is a battery — when the EAC tells your system to stop exporting, your battery keeps charging from the panels instead, capturing the energy you would otherwise have lost.
Not if your system is designed correctly. The shift just changes how you save: instead of exporting freely and pulling back later, you have to consume your own solar in real time or store it. Properly sized solar plus a battery still pays back in a reasonable timeframe — but a system designed for the old rules without storage will save substantially less than it would have under net metering.
The EAC published its new technical rules for battery storage in April 2026. These set out exactly how a battery has to be wired, sized and protected to be compliant with the grid. Any installer working on a net billing Cyprus project should be following these rules to the letter.
Applications go through the EAC and are submitted as part of the standard solar connection process. Your installer normally handles this. CGP Solar prepares and submits the full application package as part of every project we install.
