Applications for the net metering scheme for photovoltaic (PV) systems will be accepted until the end of the year, Energy Minister George Papanastasiou announced in a statement yesterday.

The government’s announcement comes at a time when many Cypriot households are weighing whether to install rooftop solar panels before the phase-out of net metering. To understand the difference:

• Net metering allows consumers to offset their electricity consumption directly with the energy they generate. For example, if a household produces 500 kWh in a month and consumes 600 kWh, they only pay for the difference—100 kWh. Essentially, each unit exported to the grid cancels out one consumed later, with only a small grid usage fee applied. This system is generally seen as more favorable to households, since the “credit” matches the retail price of electricity.

• Net billing, by contrast, compensates consumers in monetary terms rather than kilowatt-hours. Energy produced and not consumed on-site is sold to the Electricity Authority of Cyprus (EAC) at a set price, usually lower than the retail rate households pay when drawing power from the grid. For example, if a family uses 600 kWh and produces 500 kWh, they pay the full retail price for 600 kWh but receive a cash credit for the exported 500 kWh, often at a lower value.

Minister Papanastasiou stressed that while net metering remains in place in Cyprus until the end of 2025, it has already been phased out in all other EU countries. “Since the competitive electricity market begins on October 1, we decided not to introduce additional changes. Therefore, net metering applications will be accepted until the end of the year,” he clarified.

From January 1, 2026, only net billing will be available for new applicants.

Importantly, households already under the net metering scheme will remain in it until their contracts expire. At that point, they will either transition automatically to net billing or can voluntarily switch earlier if they consider it financially advantageous.

The shift from net metering to net billing could have a tangible impact on household savings. Under net metering, consumers enjoy one-to-one crediting for the electricity they generate, often making rooftop solar a highly cost-effective investment. Net billing, however, reduces that benefit since exported energy is compensated at a lower rate.