in-cyprus 12 June 2025 - by Chrysanthos Manoli
The Energy Ministry will suspend domestic solar panel installations with net metering and related state subsidies from 1 August 2025, according to information obtained by Phileleftheros.
The ministry will soon announce plans for a new solar panel installation scheme for rooftops based on net billing, sources said. The net billing system will require mandatory domestic battery storage, for which the government will provide subsidies.
The subsidy amount has not yet been determined, according to ministry sources.
Policy shift follows EU trend
Subsidies for solar panel self-production installations will not be available from August onwards, as current prices and system returns ensure rapid investment recovery without government support, officials said.
Many EU countries have abandoned net metering in favour of net billing, which is considered more equitable and reduces financial burden on consumers without solar self-production systems.
Net metering allows excess electricity production from solar panels to be stored in the electricity grid and returned to consumers as equivalent kilowatt-hours during non-production periods. Conventional kilowatt-hours cost significantly more than green electricity for other consumers under this system.
Technical differences outlined
Net billing for new installations after the system announcement will not offset kilowatt-hour production but rather the low price of electricity when generated by solar panels against the higher price when grid electricity is consumed by panel owners.
The current net metering system promotes storage of surplus solar electricity production in the grid and “return” to consumers of equivalent kilowatt-hours stored during periods when solar panels do not generate power.
Government officials determined that existing solar panel prices and efficiency levels provide sufficient return on investment without continued subsidies.
The Energy Ministry expects to provide detailed specifications for the new net billing system and battery storage subsidy programme in coming weeks.
