A real energy revolution has taken place in Cyprus: residential solar photovoltaic installations for private homes have significantly surpassed large photovoltaic parks in terms of installed capacity and electricity generation. Data for 2025 show that the share of household systems exceeded 447 megawatts (MW) out of a total of more than 1,100 MW of all installed renewable energy sources, leaving far behind the capacity of large parks and net billing systems. Of these, large solar stations account for about 350 MW, while commercial net billing systems account for around 150 MW. Small capacities also come from biomass and wind installations, which together occupy an insignificant share in the structure of “green” energy production.
Growth of household systems and impact on energy consumption
According to energy market analysts, almost every sixth home in Cyprus is already equipped with a photovoltaic system. In particular, about 81 thousand homes generate their own electricity, which is around 16% of all households on the island. This became possible thanks to the net metering program, which allowed homeowners to offset surplus solar energy against grid consumption, reducing electricity costs and encouraging a mass transition to self-generation. The net metering system was especially popular until the end of 2025, after which it was suspended. New applications are now accepted only under the net billing regime.
According to the latest data, residential solar panels in Cyprus produce over 60,000 MWh per month, and a significant portion of this energy (over 22,000 MWh) is exported to the grid. Large ground-mounted parks provide an additional generation of about 10,000 MWh per month, while commercial photovoltaic systems generate about 12,000 MWh, part of which is also fed into the distribution network.
A new era of support for solar energy in 2026
From January 1, 2026, new rules for solar installations came into force in Cyprus: the classic net metering scheme for new applications was closed, and it was replaced by an updated “self-consumption” support model with a market-based compensation mechanism, as well as net billing schemes, under which surplus electricity is sold at a fixed price rather than credited as kWh for later use. For existing systems that were registered before the end of 2025, the conditions of the old scheme remain in force until the end of the contract term.
This transformation reflects the development of Cyprus’s energy policy: the government and regulatory authorities aim to encourage more active use of solar panels in combination with energy storage systems, as well as the creation of “energy communities” — collective resources where residents of apartment buildings or homes without suitable roofs can participate in distributed generation.
Why solar energy is important now
The active growth of photovoltaic installations is taking place against the backdrop of an increase in the total installed capacity of renewable energy in Cyprus, which by the end of 2025 approached 1,140 MW. Solar energy makes up the main part of this volume, despite challenges with integration into the isolated energy system and periodic generation limitations due to grid load.
Today, photovoltaic systems are no longer just an environmental alternative, but a real economic investment: the high level of solar radiation in Cyprus, relatively high electricity costs, and updated government programs make the payback period of such systems one of the shortest in Europe.
If you are considering installing solar panels, it is important to take into account the current support rules, grid connection possibilities, and the prospects of combining photovoltaic generation with battery systems for maximum savings and independence from centralized energy supply.