Cyprus solar energy policy to phase out net metering by October 2025
As part of a strategic initiative to modernize its energy infrastructure and align with European regulations, Cyprus is preparing to transition from a net metering system to a net billing system by October 2025. This change marks a significant shift in the country’s approach to solar energy management, aimed at promoting more efficient energy use and creating a sustainable energy market.
Government’s Cyprus solar energy policy plan to phase out net metering
The Cyprus government has announced that it will phase out net metering for solar energy by October 2025. Currently, under the net metering system, solar energy producers receive credits for the electricity they generate, with any surplus carried forward indefinitely. However, this will be replaced by net billing, where surplus energy is sold back to the grid at a wholesale rate.
The transition to net billing is part of a broader government strategy to modernize the country’s energy infrastructure and comply with European Union directives. Energy Minister George Papanastasiou has emphasized that this move is essential for encouraging more efficient energy use and reducing the financial burden on other electricity consumers.
Impact of Cyprus solar energy policy on solar energy producers
This change will affect approximately 30,000 current net metering customers in Cyprus. With the new system, solar energy producers will be compensated for excess energy at the wholesale rate instead of receiving full retail credit. This adjustment may lead to reduced financial returns for those generating more electricity than they consume.
To ensure a smooth transition, the government has committed to keeping net metering in place until October 2025. After this date, all new and existing solar energy installations will transition to net billing.
Cyprus solar energy policy includes financial support for vulnerable consumers
In response to concerns about the potential impact on vulnerable consumers, the government has announced increased subsidies for solar panel installations. The Ministry of Energy has allocated an extra €8 million to support low-income households in installing solar panels, bringing the total budget to €20 million for 2024 and 2025.
These increased subsidies are part of the government’s broader effort to promote renewable energy adoption while ensuring that vulnerable consumers are not disproportionately affected by the transition to net billing.
Industry experts raise concerns over Cyprus solar energy policy changes
Despite the government’s assurances, some industry experts have raised concerns about the potential impact of this transition on the adoption of solar energy in Cyprus. They argue that the shift to net billing could discourage new solar installations due to reduced financial incentives for producing excess energy.
However, Energy Minister Papanastasiou has reiterated that the change is necessary to foster a more efficient and sustainable energy market. He has stated that the current net metering system imposes a financial burden on other consumers and that net billing will encourage better energy management and efficiency.
Future of renewable energy shaped by Cyprus solar energy policy
Despite these concerns, the Cyprus government remains committed to increasing reliance on renewable energy sources. The transition to net billing is seen as a crucial step in aligning with European Union energy regulations and promoting a more sustainable energy market.
The government’s increased financial support for solar panel installations is expected to mitigate the impact of the transition on vulnerable consumers and encourage continued investment in renewable energy. For further insights into the solar panel industry in Cyprus, you can explore the Cyprus Solar Panel Manufacturing Report.
As Cyprus moves towards a modern and efficient energy system, the shift from net metering to net billing will play a vital role in shaping the future of solar energy in the country. With the right support and incentives, the government aims to ensure that this transition benefits both consumers and the environment.
