More than 80,000 households in Cyprus will be affected in the medium term by the government’s decision to end net metering at the close of 2025. However, many consumers remain unclear about what the decision means and how it will impact them.

Energy Minister George Papanastasiou clarified that those who join net metering by the end of the year will remain in it until the end of their contract. However, there is an option to move to net billing if it is deemed more cost effective.

The renewable energy and energy saving fund will continue to accept subsidy applications until December 31.

He said the ministry originally planned to phase out net metering from August 1, but following requests from citizens, the implementation was extended to October 1. However, given the start of the competitive electricity market from the same date, it was decided to grant a new extension until the end of the year to avoid further changes.

Households planning to install rooftop solar panels for self-consumption are the most directly affected. Those who miss the application deadline will no longer qualify for net metering and will have to join net billing instead. At present, net billing is less favourable for households, as energy credits are calculated differently.

According to the latest data, as of June, there were 84,715 net metering contracts for solar systems, with a total capacity of 406 MW. In contrast, net billing contracts numbered 1,698, with a total capacity of 118.9 MW. For biomass systems under net billing, there are only 10 contracts, with 8.94 MW installed.

Current net metering contracts will continue until their 15-year term ends (10 years for commercial contracts). This means the final net metering contracts will expire in 2040, marking the full transition to net billing for all users.

Under net metering, households supply surplus electricity from their solar panels to the grid during the day and use electricity from the grid at night. Energy is credited on a kilowatt-hour (kWh) basis. Net billing works similarly, but credits are calculated in monetary terms. The payment is based on the cost of the electricity fed into the grid versus the cost of electricity consumed.

For the majority of households with net metering contracts there will be no immediate change to bills. Exceptions are limited to contracts signed 15 years ago that are nearing expiry. Bills will continue to be calculated in kWh, not euros, as will be required under net billing in the future.