Cyprus Solar Revolution: Navigating the Shift from Net Metering to Self-Consumption in Limassol, Paphos, Larnaca, Nicosia

By the Limassol Electrician Solar Team
October 16, 2025

As the sun-drenched shores of Cyprus continue to embrace renewable energy, a pivotal change is on the horizon for solar adopters across the island. Just days ago, on October 13, 2025, the Cyprus Ministry of Energy, Commerce and Industry announced the phase-out of the longstanding net metering and net billing schemes, set to conclude by December 31, 2025. In their place, a new self-consumption regime will launch on January 1, 2026, ushering in a more flexible and market-driven approach to harnessing solar power. For residents and businesses in Limassol – where rooftop solar installations have become a hallmark of sustainable living – this transition represents both an opportunity and a call to action. At Limassol Electrician Solar, we've been at the forefront of empowering local households with efficient PV systems. In this in-depth guide, we'll break down the changes, their implications, and how you can future-proof your solar investment.

Understanding the Current Landscape: Net Metering's Legacy

Cyprus's net metering system has been a cornerstone of solar growth since its inception, allowing residential users to offset their electricity bills by crediting excess solar generation at retail rates. Complementing this, the net billing scheme has enabled commercial and industrial users to receive credits at wholesale rates for surplus power fed back into the grid. These mechanisms have fueled remarkable adoption: in 2024 alone, the island added 159 MW of new solar capacity, with a staggering 100 MW stemming from self-consumption systems like residential rooftops.

This surge underscores Cyprus's unique position in the Mediterranean energy scene. With no interconnections to neighboring grids and a heavy reliance on diesel-fired generation, solar self-consumption has not only slashed household energy costs but also eased pressure on the national grid managed by the Electricity Authority of Cyprus (EAC). In Limassol, where urban density and abundant sunlight converge, thousands of families have turned to solar panels to combat rising electricity prices – a trend we've witnessed firsthand through our installation projects.

However, the liberalization of Cyprus's electricity market on October 1, 2025, marked the end of the EAC's monopoly on these schemes. This shift to a competitive retail environment demands a more dynamic framework, one that aligns with European Union directives on renewable energy self-consumption while addressing local challenges like the absence of large-scale battery storage.

The New Self-Consumption Regime: A Flexible Path Forward

At its core, the new regime – crafted by the Cyprus Energy Regulatory Authority (CERA) – empowers consumers with greater choice in how they interact with the grid. Unlike the rigid crediting of the old net metering model, self-consumers will have three primary options starting January 1, 2026:

1. Bilateral Agreements with Retailers: Negotiate customized contracts directly with energy suppliers. These could include dynamic pricing for exported surplus, tailored to your consumption patterns and the retailer's offerings. Terms like contract duration and export rates will be hashed out between you and the provider, offering personalization that's ideal for Limassol's variable household needs – from beachfront villas to bustling apartments.

2. Aggregator Participation: Join an aggregator service that pools your excess generation with others to sell into the wholesale market. This could unlock competitive returns, though experts caution that aggregators may face hurdles in Cyprus's small market scale. For commercial clients in Limassol's thriving tourism sector, this route could optimize revenues from midday solar peaks.

3. Zero-Export Mode: Opt out of grid exports entirely, focusing purely on self-use. This "islanded" approach minimizes reliance on the grid and could pair seamlessly with emerging battery solutions, enhancing energy independence.

Systems without active net metering or billing contracts by year's end will automatically transition, as will those whose contracts expire post-January 2026. Importantly, the popular "Photovoltaics for All" subsidy program – which injected €30 million ($34.7 million) into residential loans for PV installations from January 2024 through 2025 – will persist uninterrupted. This continuity ensures that incentives remain a strong driver for new setups, particularly in sun-soaked Limassol where payback periods for solar can dip below five years.

Benefits and Challenges: A Balanced View for Cypriot Consumers

The self-consumption regime promises several upsides, particularly in a market where electricity costs have long burdened households. By fostering direct retailer negotiations and aggregator efficiencies, it could drive down effective rates for solar users, making clean energy even more accessible. For the grid, this means reduced strain during peak hours, as more users prioritize self-use – a boon for Cyprus's isolated power system.

Yet, challenges loom. Dr. Andreas Procopiou, founder of CyprusGrid and a leading energy expert, highlights the island's vulnerabilities: "The government has made a genuine effort to help households access cheaper electricity. But given Cyprus’s unique challenges – no battery storage, no interconnections with other grids, and heavy reliance on diesel generation – this is currently the only practical way to bring prices down. Still, we urgently need to complement these measures with energy storage solutions to strengthen consumers’ self-sufficiency and the overall resilience of the power system."

Procopiou's words resonate deeply in Limassol, where summer blackouts from air-conditioning surges are all too common. The new regime doesn't mandate batteries, but their integration could transform solar setups into resilient microgrids. Aggregators, too, may struggle with logistics in a fragmented market, potentially delaying surplus monetization for small-scale producers. Despite these hurdles, the announcement has brought relief to installers like us, clarifying the path ahead and sustaining momentum for solar growth.

Implications for Limassol's Solar Market: Seizing the Moment

For Limassol residents eyeing solar, the timing couldn't be better – or more urgent. With net metering ending in just over two months, now is the window to install under the current scheme and lock in retail-rate credits. Post-2026, the self-consumption options will favor tech-savvy users who can leverage smart inverters for optimized exports or pair panels with home batteries for off-peak storage.

From our vantage at Limassol Electrician Solar, we've seen how these policy shifts amplify the value of quality installations. A typical 5 kW rooftop system in Limassol generates enough to cover 70-80% of annual needs, yielding savings of €800-€1,200 yearly. Under the new regime, adding a 5-10 kWh battery could boost self-sufficiency to 95%, shielding against volatile wholesale prices.

Moreover, the ongoing subsidies mean eligible households can access low-interest loans, reducing upfront costs to as little as €3,000-€4,000 after grants. As CERA's framework evolves, we anticipate a boom in hybrid systems – solar plus storage – tailored to Cyprus's diesel-dependent grid.

Charting a Brighter Future: Your Next Steps with Limassol Electrician Solar

Cyprus's pivot to self-consumption isn't just a policy tweak; it's a strategic evolution toward a more resilient, consumer-centric energy ecosystem. While uncertainties around aggregators persist, the core promise remains: solar will continue to illuminate homes and businesses, driving down costs and carbon footprints.

At Limassol Electrician Solar, we're committed to guiding you through this transition. Whether you're rushing a pre-2026 install or planning a battery-enhanced setup for the new era, our certified team offers free consultations, seamless permitting, and 25-year warranties on premium panels. Contact us today at limassolelectrician.com or +357 94449354 to explore how solar can power your Limassol lifestyle sustainably.

The sun rises on a new chapter – let's make it shine brighter together.