The year 2026 will be a turning point for the photovoltaic systems market in Cyprus. On the one hand, the popular government program “Photovoltaic Systems for All” has come to an end, and a new support scheme is being prepared to replace it, which will include energy storage systems. On the other hand, the net metering model that has been in place for many years is officially giving way to the net billing system, a change that is already sparking active debate among consumers and industry experts.
As reported by Christina Papadopoulou, spokesperson for the Cyprus Electricity Authority (EAC), the gradual transition to net billing will affect around 89,000 households and small commercial properties. These systems currently cover approximately 25% of all properties in the country, highlighting the scale of the changes for the energy market.
What will change for new and existing solar panel owners
According to EAC data, all new applications for the installation of photovoltaic systems submitted during 2026 will automatically fall under the net billing regime. At the same time, existing self-producer contracts concluded under the net metering system will remain valid until their expiry, which is 15 years from the date of equipment installation.
Interest in the previous system was so high that, ahead of its termination, 11,500 homeowners and small property owners rushed to submit applications for solar panel installations. Consumers sought to retain the ability to “virtually store” excess energy in the grid and use it during more expensive months.
Already, around 2,000 consumers in Cyprus are operating under the net billing system. These are mainly owners of photovoltaic installations with a capacity of more than 10 kilowatts, for whom this regime had been applied previously.
It is important to note that, according to a decision by the Ministry of Energy, net metering was officially discontinued on December 31, 2025. From January 1, 2026, all new contracts are concluded exclusively under the net billing system for a term of 10 years, whereas previous contracts were valid for 15 years.
What is the fundamental difference between net metering and net billing?
The key difference between the two systems lies in the method of offsetting the energy produced. Under net metering, excess “green” energy was accounted for in kilowatt-hours and could be used by the owner later, when consumption increased.
Under the net billing system, surplus energy is converted into a monetary equivalent. The Cyprus energy regulator set the compensation level at 11 cents per kilowatt-hour in 2025. Accordingly, excess energy is sold to the grid at this price, and the consumer receives a monetary credit. Another important change concerns settlements. While under net metering excess balances were reconciled once every three years, under net billing the financial balance will be calculated every 12 months, usually in November or December. Current compensation tariffs will be continuously published by the EAC.
Economic impact and the industry’s position
The head of the Renewable Energy Enterprises Association (SEAPEK), Phanos Karantonis, noted that the largest electricity surpluses are generated in spring, in March and April, when consumption is relatively low. Previously, these volumes could be effectively used in summer, when demand and tariffs are higher.
Now the situation is changing. According to him, excess energy will be compensated at 11 cents, while in summer consumers purchase electricity at around 25 cents per kilowatt-hour. Thus, the difference amounts to about 14 cents, which reduces the economic benefit but does not eliminate it entirely.
As an example, he cited a case where a property produces 1,200 kilowatt-hours and consumes 1,000 over the April–May period. Previously, the remaining 200 kilowatt-hours were carried over to summer. Now they will be paid at the fixed rate of 11 cents per kilowatt-hour.
What’s next: energy storage and new programs
Experts agree that the growth of self-generation and self-consumption affects the entire energy system of the country. In the medium term, this could lead to higher network charges for consumers without solar panels.
In this context, the need to develop new, fairer support programs is emphasized—programs that will combine photovoltaic systems with batteries. Such an approach will allow more households to participate in the energy transition and reduce dependence on tariff fluctuations, making solar energy in Cyprus more sustainable and accessible in the long term.