How to Install Solar Panels in Cyprus in 2026

Solar panels can be fitted on the roof of a private house in Cyprus without a building permit, provided the system is no larger than 20 kW. From 2026, surplus power that the panels send to the grid is bought at no more than 11 cents per kilowatt-hour, while electricity taken from the grid costs more. So it pays best to use the output in the home. Installers charge around €6,000 for a 4 kW system for a house.

This article covers how the new connection scheme works, what happened to older contracts, which documents are needed, what a system costs and produces, and what to check if the house you are buying already has panels. What makes up an electricity bill is explained in our article on how much utilities cost in Cyprus.

Since 1 January 2026, new home systems have been connected under net billing, where the exchange with the grid is settled in money. The old kilowatt-hour offset scheme, net metering, closed to new applications on 31 December 2025.

Under the new scheme, each bill first compares how much electricity the home drew from the grid and how much it exported. If more was exported, the difference is credited in money to the next bill. Once a year any unused balance is written off without compensation.

"People still install a bigger system out of habit, so they can 'sell' power. Under the new scheme that doesn't work: surplus is worth less than electricity from the grid. Systems are now sized to the home's own use, and anything extra is better sent to a battery or the water heater," says a solar system design engineer in Larnaca.

Around 89,000 homes and small businesses are connected under the old scheme. Their contracts run to the end of their term — 15 years from connection. After that the system can move to the new scheme.

Under old contracts, surplus kilowatt-hours carry over from bill to bill, but every 36 months the balance is written off. The last time this happened was in the February–March 2026 bills.

System size is limited by the distribution system operator's rules:

The grid operator may require a device that lets it limit exports remotely, or a setting that stops the system exporting to the grid at all.

Documents you will need:

A private house. A rooftop system of up to 20 kW can be installed without planning or building permission. The condition is that the house itself was built with a permit and is not a listed monument. A ground-mounted installation larger than 20 m² needs a permit.

A flat in an apartment building. The roof is common property. Panels can be installed on it for the building's needs with the consent of owners holding 75% of the shares, provided the installation does not stop the others from using their property. Residents of one building can also agree to share the output.

Installer prices for 2026:

A battery costs roughly €300–400 per kilowatt-hour of capacity.

How much 1 kW of peak capacity produces a year, according to European Commission estimates:

Here is a sample calculation. A 4 kW system in Limassol produces about 6,850 kWh a year. If the household uses half and exports half, the saving is about €1,200 a year: roughly €850 from not buying electricity at 25 cents, and about €380 for surplus at 11 cents. A €6,000 system would then pay for itself in about five years. The more of the output the home uses, the faster the payback.

On sunny days Cyprus generates more electricity than the grid can absorb, and in spring and winter it can take less than in summer. The operator then limits exports in turn: large solar parks first, then smaller systems, including home rooftops. In practice most of the curtailment so far has fallen on the large parks.

Central storage should ease the situation, with start-up expected in summer 2027. In addition, Cyprus is upgrading substations with €95 million by the end of 2029.

Other documents worth checking before the deal are covered in our article on how to check a flat in Cyprus before buying.

Do you need a permit for solar panels in Cyprus?

For a system of up to 20 kW on the roof of a house built with a permit, no building permit is needed. A notice stamped by the building authority is submitted to the grid operator.

What price is paid for surplus electricity?

Under the new scheme, a regulated price of no more than 11 cents per kilowatt-hour. The money is credited to the next bill.

Can panels be installed if you own a flat?

Yes, on the shared roof with the consent of owners holding 75% of the shares in the building.

Are there solar panel subsidies in 2026?

There is no separate subsidy for households. Panels can be included in the home energy upgrade scheme together with insulation.

If you plan to fit solar panels, choose a house with a south-facing roof and a building permit. Suitable villas in Cyprus and new developments with generous roofs are in the Cyprus-Real.Estate catalogue.