End of solar subsidies could undermine green transition, Akel warns

The termination of subsidies for residential photovoltaic systems and building energy upgrades at the end of 2025 without new plans creates a dangerous “gap” in Cyprus’ green transition, Akel leader Stefanos Stefanou has warned in a letter to the energy minister.

“This gap undermines the dynamics of the green transition in the residential sector and intensifies uncertainty for thousands of households who wish to invest in cheap and clean energy, energy saving and the energy upgrade of their homes,” he wrote.

He said the uncertainty is compounded by the decision to end net metering on December 31, 2025 and move horizontally to net billing, without a transitional phase and before a mature and affordable energy storage market has been established.

Stefanou also pointed out that the ministry has repeatedly announced “PVs for All” grant plans over recent years, but they have yet to materialise.

While recognising that net billing is “a regulatory obligation” and, at grid level, “a fairer and more energy-sustainable model”, he argued that without effective access to affordable energy storage, and in an electricity market unable to address high energy costs, net billing “is currently becoming less economically beneficial for households”.

He added that private electricity suppliers are currently reaping those benefits, buying surplus household energy at competitive market prices, including zero during low-demand periods, and reselling it at today’s high rates.

Stefanou called on the minister to clarify when new support plans would be announced for home photovoltaics, energy storage, energy communities, renewable energy communities, building upgrades and energy-saving solutions.

He also asked for information regarding the specific measures the ministry intends to introduce in order to make home energy storage financially accessible to everyone, particularly middle- and low-income groups.

The Akel leader also outlined a series of proposals to bridge the green energy gap.

These include maintaining targeted net metering for vulnerable households unable to afford energy storage, alongside virtual net metering for apartment residents and those lacking space for panels, ensuring no one is sidelined from the benefits of energy transition.

He also calls for net metering schemes with strict, clear technical and socio-economic criteria to safeguard grid stability, acting as a bridge until universal net billing, paired with storage, becomes feasible.

Further suggestions feature bundled subsidies for home photovoltaics and energy upgrades, aligning with the EU’s “Energy Efficiency First” principle; a dedicated programme for energy and RES communities equipped with municipal or community-level storage to harness economies of scale; fully subsidised home energy audits with practical saving advice; and extending support schemes to homes permitted after 2017, previously excluded, to help young couples slash energy bills.