Cyprus converts solar subsidies – net metering ends, battery storage systems become mandatory
Cyprus converts solar subsidies – net metering ends, battery storage systems become mandatory
At the beginning of 2026, Cyprus is opening a new chapter in its energy policy. The "Photovoltaics for All" funding program expired on December 31, 2025. This means that new applicants can no longer use the previous net metering model. The Ministry of Energy is already working on a follow-up program, which is to be presented shortly and provides for significant changes.
According to information from the newspaper Phileleftheros, the new system will replace the previous kWh billing with net billing. While net metering allowed surplus solar power to be fed into the grid and withdrawn again later, the following will apply in the future: From 1 January 2026, new system operators will only receive a credit note at the current market price for electricity fed into the grid, but will still have to pay the full end customer price for electricity purchased from the grid.
Cyprus Leading Solar Panel Installtion
Another key innovation concerns energy storage. Anyone who wants to receive state subsidies under the new program in the future will have to install battery storage systems in addition to the photovoltaic system. The aim is to relieve the power grid and better cushion load peaks by storing more solar energy on site. Details on minimum capacities and funding levels are still pending; the programme is to be financed from national budgets.
Current status of solar use by district
More than 88,000 households and small businesses in Cyprus now use solar power. The district of Nicosia leads the way:
- Nicosia: 34,711 systems
- Limassol: 20,146 systems
- Larnaca: 15,418 systems
- Paphos: 10,275 systems
- Famagusta: 4,812 systems
Of these approximately 88,000 contracts, more than 81,000 have been under the now abolished net metering model.
Outlook: Energy communities
In the future, the government also wants to provide more support for energy communities. This model also enables people without a suitable roof – for example in apartments – to benefit from cheap solar power from communal systems. Cyprus is thus following an EU-wide trend away from individual grid feed-in towards collaborative, fairer billing models.
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Cyprus Leading Solar Panel Installtion
Author: MF Redaktion
Source CY NEWS