The last day to apply for a solar panel subsidy is fast approaching, with the deadline set for December 31. After this date, homeowners will shift from a net metering system to a net billing framework, fundamentally changing how they are compensated for excess solar energy.
Solar panel: Transitioning to Net Billing
Under the current net metering system, homeowners receive a one-to-one credit for the energy they export back to the grid. However, with the introduction of net billing, the compensation structure will alter significantly. Homeowners will now receive a wholesale rate for the surplus solar electricity they generate, which is noticeably lower than the retail rates they previously enjoyed. This change is anticipated to affect many current solar panel users.
Reasons Behind the Shift
The move to net billing is largely a response to grid overload issues caused by the rapid uptake of photovoltaic (PV) systems and the rollout of smart meters. Reports indicate that approximately 145 GWh of surplus solar energy was rejected in early 2025 due to this strain. The new net billing system aims to incentivise homeowners to store excess energy rather than feed it directly back into the grid.
Impending Changes for Subsidies
Compounding the urgency of this deadline is the phasing out of solar panel subsidies, which will officially end on December 31. Despite this reduction in support, homeowners will still have access to battery subsidies under the new net billing framework starting January 1, 2026. This offers an alternative for those looking to optimise their solar energy usage and storage.
Current State of Applications
As of now, there are around 4,000 pending applications for solar panel subsidies. The Electricity Authority of Cyprus has committed to processing these applications as quickly as possible to ensure homeowners do not miss the deadline. Currently, about 81,000 dwellings in Cyprus are equipped with photovoltaic systems, which equates to approximately 16 per cent of all households.
Future of Solar Energy in Cyprus
It is important to note that the number of households with solar panels may be lower than reported, as the 81,000 figure is based on data up to September and does not account for the growth in dwellings since the last census in 2021, which recorded a total of 491,000 dwellings. With the impending changes, homeowners are encouraged to take action quickly to secure their solar panel subsidies before the switch to net billing takes effect.
