Cyprus will replace its current net metering and billing systems with a new market-based self-consumption model from January 2026, as the island’s electricity sector opens up to competition.
Cyprus’ Ministry of Energy, Trade and Industry has confirmed that the country’s current net metering and net billing arrangements will end on December 31. A new self-consumption framework designed by the Cyprus Energy Regulatory Authority (CERA) will come into effect from January 1, 2026.
Net metering now applies to residential PV systems and credits solar generation at the retail rate, while net billing applies to commercial and industrial systems credited at the wholesale rate.
These programs have led to significant adoption of rooftop solar, which accounts for a large portion of Cyprus’s installed PV capacity. In 2024 alone, the country added 159 MW of new solar capacity, of which 100 MW came from self-consumption systems.
The ministry said the ongoing ‘Photovoltaics for All’ grant program – launched in January 2024 with €30 million ($34.7 million) in funding for 2024-2025 – will continue as planned, providing loans for the purchase and installation of residential PV systems.
Under the new regime, systems without a signed net metering or billing contract by the end of 2025, as well as systems whose current contracts expire after January 1, will transition to the updated framework.
CERA outlined three options for self-consumers: signing a bilateral agreement with an energy retailer, joining an aggregator that sells excess energy to the market, or choosing not to export excess energy to the grid. The duration and terms of bilateral contracts are determined between the consumer and the retailer.
The reform follows the launch of a fully liberalized electricity market in Cyprus on October 1, ending the exclusive role of state-owned utility EAC in net metering and billing.
CERA’s announcement provided relief for solar installers unsure of what would replace existing schemes.
“The government has made a sincere effort to help households access cheaper electricity,” said Dr. Andreas Procopiou, energy expert and founder of CyprusGrid. “But given Cyprus’ unique challenges – no battery storage, no interconnections with other networks and a heavy reliance on diesel generation – this is currently the only practical way to reduce prices. Yet we urgently need to complement these measures with energy storage solutions to strengthen consumer self-sufficiency and the overall resilience of the energy system.”
Procopiou said the new market framework remains uncertain and aggregators are unlikely to integrate their operations with self-consumption programs in the near term. “It will be a real challenge for them. Cyprus is a very small market, aggregators depend on scale and the logistics of managing and aggregating thousands of small units is extremely complex.”
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