For years, Net Metering in Cyprus has been a game-changer for homeowners and businesses alike, transforming how we harness the sun’s abundant energy. This innovative scheme allowed countless Cypriot residents to significantly reduce their electricity bills, embrace renewable energy, and contribute to a greener island. At CGP Solar, we’ve had the privilege of helping hundreds of clients benefit from this successful program, empowering them to take control of their energy consumption.
However, as Cyprus accelerates its transition towards a more dynamic and sustainable energy market, significant changes are on the horizon, presenting a critical deadline for new applicants. If you’re considering a new solar photovoltaic (PV) system, or if you’re an existing solar owner, it’s absolutely crucial to understand these upcoming shifts, particularly the transition for new installations effective January 1, 2026.
If you’ve been considering installing a solar PV system and wish to benefit from the established Net Metering in Cyprus scheme, you must submit your application before December 31, 2025. This is a crucial deadline, as the traditional Net Metering scheme, along with its associated solar panel subsidies, will no longer be available for new connections from January 1, 2026, onwards. This means the generous 1:1 credit for exported electricity will transition to a different model for all new systems.
Net metering in Cyprus operates on a simple yet effective principle. When your photovoltaic system generates more electricity than your property consumes, the excess energy is automatically fed into the EAC (Electricity Authority of Cyprus) distribution network. This surplus energy is measured and credited to your account.
During periods when your solar system produces less electricity than you need, you draw power from the grid as usual. The net metering in Cyprus calculates the difference between the energy you’ve consumed from the grid and the energy you’ve fed back into it. You’re only billed for the net consumption, hence the term “net metering.”
The net metering in Cyprus is regulated by the Cyprus Energy Regulatory Authority (CERA) and implemented through the Electricity Authority of Cyprus (EAC). Under the current regulations, which remain in effect until December 31, 2025, the following parameters apply:
One of the most common questions homeowners ask is: “Will net metering significantly lower my electricity bill?” The answer is a resounding YES!
💰 Typical savings: Net metering can reduce your electricity costs by up to 70% or more, depending on the size of your system and your energy consumption.
📉 Return on Investment (ROI): Most homeowners recover their initial investment in 2-3 years through energy savings.
🌍 Environmental Benefits: A 5 kW solar system can offset around 6 tons of CO₂ emissions per year—the same impact as planting 100 trees annually!
| Feature | Net Metering | Traditional Electricity |
|---|---|---|
|
Monthly Costs |
Lower or Zero |
Expensive |
|
Energy Source |
Renewable (solar) |
Grid power |
|
Grid Dependence |
Uses grid as backup |
Fully depends on the grid |
|
Long-Term Benefits |
Pays off investment in solar panels |
No return on electricity payments |
|
Billing System |
Bi-directional (consumption & production) |
One-way (only consumption) |
|
Sustainability |
100% Green |
Fossil Fuels |
|
Government Incentives |
Available in Cyprus until September 30, 2025 |
None for traditional users |
Here’s what’s changing for new solar PV installations from January 1, 2026:
Net Metering Ends for New Applications: As of January 1, 2026, the traditional Net Metering in Cyprus scheme will no longer be available for new photovoltaic system installations. This means if you apply for a new grid-tied solar system after December 31, 2025, you will be connected under a different scheme.
Net Billing Becomes the New Standard: For all new grid-connected PV systems from January 1, 2026, the Net Billing model will be the default. Under Net Billing, you still consume your self-generated power, but any excess energy exported to the grid is sold at a wholesale market rate, rather than earning a 1:1 credit. You then buy electricity from the grid at the retail rate when your production is insufficient. This fundamentally shifts the financial dynamics, making self-consumption and energy storage even more vital for maximizing savings.
End of Direct Solar Panel Subsidies: As of December 31, 2025, direct government subsidies specifically for the installation of solar panels (PV systems themselves) will cease. This indicates a government belief that the economic viability of PV systems is now strong enough without these direct grants.
New Subsidies for Battery Storage Systems: To strategically support the grid and encourage higher self-consumption, the Cypriot government is introducing new grant schemes exclusively for battery energy storage systems for new PV installations, effective January 1, 2026. This is a powerful incentive to pair your new solar panels with batteries, unlocking greater energy independence and financial benefits under Net Billing.
Competitive Electricity Market Launch: Adding another layer of dynamism, Cyprus is slated to launch its competitive electricity market on September 15, 2025. This will introduce more fluid, potentially half-hourly pricing, impacting the buy-back rates for exported solar energy under Net Billing.
If you currently have a solar PV system connected under the Net Metering in Cyprus scheme, your existing agreement remains valid under its original terms until your contract expires. You are not automatically transitioned to Net Billing. This provides stability and allows you to continue enjoying the benefits you signed up for. However, many existing users are now considering adding battery storage to their systems to enhance self-consumption, even further reducing their reliance on the grid and potentially benefiting from future energy market trends.
If you’re wondering, “Can I participate in net metering?” here’s what you need to qualify:
✔️ Own or install a grid-connected solar panel system
✔️ Be a residential or business electricity consumer in Cyprus
✔️ Install a bi-directional meter (to track energy flow)
✔️ Ensure compliance with local regulations and licensing
The window for applying for net metering in Cyprus under current favorable conditions is rapidly closing. If you’re considering solar energy for your property, it’s crucial to act immediately to secure your position before the January 1, 2026 changes take effect.
The current net metering scheme in Cyprus offers:
