Cyprus Households Stranded in Darkness After Solar Credit Reset

Unexpected Change in Electricity Billing for Cyprus Households

In February 2026, electricity bills issued to thousands of households in Cyprus with rooftop photovoltaic systems revealed an unexpected change. The surplus electricity credits that had been accumulated under net-metering agreements no longer appeared as balances carried forward. This shift left many customers confused and financially impacted.

Net-metering agreements allow households to offset the electricity they export to the grid against their own consumption, effectively banking the surplus for future use. However, this practice has now changed. In many cases, credits built up over months or years were reset to zero, meaning households lost previously earned offsets that would normally reduce future electricity charges.

The change was not announced in advance. Bills contained no explanatory note, and there had been no public announcement beforehand. This lack of communication raised concerns about transparency and foresight from the electricity authority (EAC).

The Dispute Over Surplus Credits

The dispute is not whether the EAC has the legal power to clear surplus credits, but rather whether it exercised sufficient foresight and transparency in notifying customers. Many customers were left without clear, timely information about a change that directly affected their finances.

Customers who contacted the EAC were told that the cancellation of credits applied universally to net-metering customers for the February and March billing periods. However, call-center staff often struggled to point callers to a specific published decision or legal text.

One customer expressed frustration, saying, “We signed a 15-year agreement that says surplus electricity is carried forward. Now we are told the credits are gone.”

Community Response and Contractual Concerns

Discussion quickly spread across community platforms, where users compared their bills. A consistent pattern emerged: many reported February bills continuing to show “credit units brought forward” from the previous period, but no longer showed credits carried forward to the next period as had usually been the case.

The practical effect was a full reset of surplus balances. For households that rely on winter overproduction to offset spring consumption, the change is expected to increase April and May electricity bills.

Net-metering customers point to the wording of their contracts. The standard agreement states that “any surpluses will be carried over to the next billing period,” which had been interpreted for years as allowing credits to roll forward without a fixed expiry. Many households adjusted their systems and calculated payback periods based on this understanding.

EAC’s Explanation and Policy Changes

The EAC cited amendments to the agreement approved by the cabinet in March 2023. These changes essentially modified the “plan for the production of electricity from renewable energy sources for own consumption.” Under the amended plan, category A systems, standard household solar panel installations operating under net-metering arrangements, are subject to a 36-month limit on surplus accumulation.

The plan states that production surpluses are carried forward “for a total period of 36 months” and that “in the last bill of the 36 months, any surpluses will be zeroed.” This means unused credits may only be retained for up to three years before being automatically cancelled without compensation.

In a written response to a formal complaint, the EAC confirmed that implementation of this provision is underway. The authority affirmed that “the deletion of surplus energy credits has begun. The next clearing of surpluses will take place in February–March 2026 and will be implemented every three years thereafter.”

Questions About Implementation

While the existence of a 36-month cap is not in dispute, the manner of its application has raised questions. The amended plan refers to zeroing surpluses “in the last bill of the 36 months,” which some customers interpret as applying individually, based on the date a solar panel system became operational.

They argue that under that reading, systems installed less than three years ago would not yet be affected. However, the EAC’s approach applies a common clearing date—this February and March—to all net-metering systems, regardless of installation date. This distinction is significant and has prompted debate over whether the implementation fully reflects the wording of the plan.

Communication and Grid Curtailment Issues

Customers also report receiving no advance warning that this February would mark the first clearing cycle. There was no targeted communication to net-metering customers, nor bill inserts, and distinctly no prominent notice on the EAC’s website.

Several customers say EAC staff initially struggled to explain the basis for the change. The reset coincides with increasing grid curtailments, as the EAC manages periods of excess solar generation, largely attributed to the absence of large-scale battery storage to absorb renewable energy surpluses (RES).

Some households report being disconnected from the grid on multiple days in recent weeks, limiting their ability to generate electricity. “I’ve been disconnected four out of the last five days,” said Paphos resident Paul Kaye. “At the same time, 7,000 credits I accumulated have been wiped.”

Curtailment reduces current production just as previously accumulated credits are removed, increasing the short-term impact on bills. Customers with newer systems, particularly those subject to export-limiting controls, appear most affected.

Solar Policy Restructuring

The issue arises amid a restructuring of Cyprus’ solar policy. From January 2026, new photovoltaic installations are placed under net billing rather than net metering. Under net billing, exported electricity is compensated at wholesale rather than retail rates.

Authorities have estimated that around 145 Gigawatts of solar electricity was rejected in early 2025 due to oversupply. Net billing is intended to encourage self-consumption and storage, supported by battery subsidies.

Existing net-metering contracts remain in force, but the introduction of time-limited credit accumulation marks a material shift from how many customers understood those contracts to operate.

EAC’s Response and Customer Criticism

The EAC has admitted to responding promptly to written complaints and cited an established regulatory framework. Speaking to the Cyprus Mail, the electricity authority insisted it was acting strictly “within the framework set by the energy ministry and in accordance with all applicable regulations.”

The authority maintained that the clearing of surplus net-metering credits was “being implemented on the basis of ministerial directives and approved policy decisions.” However, the EAC did not comment on whether customers had been formally notified in advance of the change.

Asked specifically about communication with affected households ahead of the February and March billing periods, the authority offered no response and simply reiterated existing regulatory policy.

One customer, writing to the Cyprus Mail, criticized the move succinctly. “The EAC has not informed anyone about this. We signed a 15-year contract, and what they are doing feels like actual theft. From any ethical or fairness perspective, accrued credits should not be removed while households are being disconnected from the grid. It is simply unfair.”