Thousands lose out as curbs on surplus energy put into effect

Electricity bills issued in February 2026 revealed an unexpected change for thousands of Cyprus households with rooftop photovoltaic systems.

Surplus electricity credits accumulated under net-metering agreements no longer appeared as balances carried forward. Such agreements are those where households offset electricity they export to the grid against electricity they later consume to effectively bank the surplus for future use

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.

No advance notice accompanied the change.

Bills contained no explanatory note, and no public announcement had been issued beforehand.

The dispute at heart is not whether the authority has the legal power to clear surplus credits, but on whether it exercised sufficient foresight and transparency in notifying customers, many of whom were left without clear, timely information about a change with direct financial consequences.

Customers contacting the electricity authority (EAC) were told that the cancellation of credits applied universally to net-metering customers for the February and March billing periods.

Call-centre staff were often unable to point callers to a specific published decision or legal text.

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

Discussion quickly spread across community platforms, where users compared bills.

A consistent pattern emerged, as 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, while any deficits will be normally billed. It is clarified that there will be no final clearing of surpluses on the last bill of a twelve-month time period.”

In practice, this had been interpreted for years as allowing credits to roll forward without a fixed expiry.

Many households adjusted their systems and calculated payback periods on that basis.

The EAC has since cited amendments to the agreement. This was approved by the cabinet in March 2023 essentially changing the “plan for the production of electricity from renewable energy sources for own consumption”, administered by the energy ministry.

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”, meaning 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, 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.”

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.

The EAC’s approach applies a common clearing date, that being this February and March, to all net-metering systems, regardless of installation date.

The distinction is significant and has prompted debate over whether the implementation fully reflects the wording of the plan.

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 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,” Paphos resident, Paul Kaye, informed the Cyprus Mail.

“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.

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.

The EAC has admittedly responded promptly to written complaints and cited an established regulatory framework.

Speaking to 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”.

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 Cyprus Mail, criticised 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.”