Cyprus will transition residential photovoltaic (PV) systems from net metering to net billing starting 1 January 2026, marking a significant change in how households produce, consume and sell electricity. Currently, about 100,000 households operate under net metering, representing 43% of the island's solar capacity. Under the new net billing system, exported electricity will be sold at wholesale prices while imported electricity will be purchased at retail rates, changing the economic dynamics for solar users.

The shift emphasizes self-consumption of solar energy, increasing the importance of battery storage systems to retain excess production. Existing net metering contracts will remain valid until expiry, usually up to 15 years, after which households may transition to net billing or other market options. Recent policy changes include resetting accumulated surplus energy without compensation, a move that has sparked public and parliamentary debate.

Additionally, the subsidy program "Photovoltaics for All" ended in December 2025, with a new €20 million scheme, "Upgrade–Save," expected in September 2026 to boost household energy efficiency and potentially support solar-plus-storage installations. Meanwhile, curtailments of renewable energy aim to preserve grid stability by reducing excess solar output during low demand periods, impacting large solar parks and newer residential systems.