Cyprus to phase out the net-metering system by the end of 2025

The Government of Cyprus has decided to gradually discontinue the use of the net-metering system by the end of 2025. This decision directly affects more than 80,000 households that have already installed solar panels or are planning to switch to renewable energy sources. For many residents, it still remains unclear how the change of rules will impact their expenses and the benefits of using solar energy.

Energy Minister George Papanastasiou explained that all users who manage to connect to the system before the end of 2025 will be able to continue using it until their existing contracts expire. At the same time, they will have the option to switch to the net-billing system if it proves more beneficial.

Applications for participation in the subsidy programme for the installation of solar panels and connection to the net-metering system can be submitted until 31 December. Initially, the abolition of net-metering was planned for 1 August 2025, but the dates were later moved first to 1 October, and then to the end of the year. Authorities explained this step as necessary to avoid confusion and disruptions during the transition period against the backdrop of changes in the energy market.

Experts warn that those considering the installation of solar panels should hurry with their applications. Otherwise, new users will only be able to connect to the net-billing system, which is currently considered less advantageous for households.

As of June 2025, Cyprus had more than 84,000 net-metering contracts with a total capacity of about 406 MW. By comparison, only around 1,700 net-billing contracts had been signed for 119 MW, while in the biomass sector there were only 10 contracts for 9 MW.

Existing net-metering contracts remain valid for up to 15 years, with the last of them expiring only in 2040. Under net-metering, the exchange with the power grid is carried out in kilowatt-hours, allowing households to directly offset consumption with self-produced electricity. In contrast, net-billing involves monetary transactions for the energy sold and purchased.

Thus, more than 84,000 families in Cyprus will continue using net-metering until their contracts expire, but new users will be forced to switch to other settlement schemes, which may change the economics of using solar panels in the future.