The government is set to replace its popular “Photovoltaics for All” scheme with a new national programme in early 2026, which will introduce subsidies for domestic energy storage batteries.
This change comes as consumers rush to secure the net metering compensation model, which expires at the end of 2025, forcing all new photovoltaic applications submitted from 2026 onwards onto the less beneficial net billing scheme.
The anticipated shift has already triggered a surge in consumer activity, with the number of pending applications before the Electricity Authority of Cyprus (EAC) now exceeding 4,000. EAC spokeswoman Christina Papadopoulou confirmed that the Authority has procured external services to manage the high volume of applications.
The rush is due to the fundamental financial difference between the two systems. Net metering provides energy compensation, where the kilowatt-hours (kWh) generated are directly offset against the kWh consumed from the grid. This means surplus energy is essentially ‘banked’ on the network, and the consumer primarily pays only for regulated charges and fees.
In contrast, net billing operates on monetary compensation. Injected energy is valued at the production price per kWh at that moment, while consumed energy is charged at the higher consumption price. This exposes the consumer to fluctuations in electricity prices and reduces the overall financial benefit compared to the stable Net Metering model.
Consumers wishing to secure the existing net metering model must submit a complete application by 31 December 2025, and must hold a building permit issued before 31 December 2021. All existing contracts, and those secured by the deadline, remain valid for 15 years from the date of agreement. Data from September 2025 shows the current market preference, with net metering accounting for 89,157 systems, compared to just 1,892 contracts under net billing.
The Ministry of Energy confirmed that the new national programme, which will replace “Photovoltaics for All,” is financed by national resources and is expected to be announced in early 2026. Information suggests that, in addition to photovoltaic system subsidies, the grant scheme will include support for domestic energy storage batteries, directly aiming to mitigate the power cut issues currently observed due to solar power surges on the network.