In light of recent publications and public statements that create confusion regarding changes to the self-consumption of electricity from photovoltaic systems, the Cyprus Association of Renewable Energy Enterprises (SEAPEK) deems it necessary to take a public, clear and documented position.
The Association clarifies that the confusion observed is not a technical detail, but the result of the incorrect identification of two completely different things, the Grant Schemes and the Self-Consumption Framework (offsetting).
Sponsorship plans and self-consumption framework: Two different tools
As SEAPEK explains, Grant Plans are public policy tools.
They are financed by the RES & Energy Conservation Fund, which draws resources from electricity consumers themselves, through the RES & Energy Conservation consumer fee included in electricity bills.
These Plans are prepared with specific objectives:
• the promotion of Renewable Energy Sources,
• enhancing energy saving,
• the reduction of pollutant emissions,
• combating energy poverty.
These are annual Plans, which:
• terminate at the end of each calendar year,
• are re-announced after the approval of the RES & Energy Conservation Fund budget for the new year,
• and, as is customary, they have retroactive effect from the beginning of the year.
In recent years, the Grant Schemes have mainly subsidised the installation of Photovoltaic systems. For the current period, it is likely that emphasis will be placed on energy storage, provided that this is deemed beneficial for consumers and necessary for the operation of the electrical system.
At this point it must be made absolutely clear, according to the Cyprus Association of Renewable Energy Enterprises, that:
• The existence or absence of a Grants Scheme does not determine or limit the ability of a household to install a photovoltaic system for its own use.
A household can still install photovoltaics today, harness the sun and reduce its energy costs, without losing any potential right to participate in a new Grant Scheme that the state may announce in the near future.
The Self-Consumption Framework is about offsetting, not sponsorship
The self-consumption framework, as the Association explains, concerns exclusively the parameters of the commercial netting agreement between the consumer/self-producer and the electricity supplier.
Today, where the EAC serves all household consumers as a Supplier, the public debate focuses on the parameters published on 31 December 2025 (31/12/2025) and implemented from 1 January 2026 (1/1/2026).
The main message is clear:
• The netting of consumption and production does not change.
• Self-consumption is not prohibited.
• What changes is the way in which surplus energy injected into the grid is compensated.
Tax incentives: Real benefit, not theory
At the same time, as of 1 January 2026, the new tax reform is in effect, which essentially introduces incentives for capital expenditures for energy upgrades of the main residence, including the installation of photovoltaic systems for self-consumption.
SEAPEK, through a tax consultant, has requested and received official clarifications from the Tax Department for the full and correct implementation of the relevant provisions.
In any case, it is important to understand the magnitude of the potential benefit.
• Based on the Tax Reform Implementation Guide, the examples included therein, as well as the relevant clarifications received from the Tax Department, a couple of taxpayers may, subject to the income criteria and provided that the capital expenditure justifies it, benefit from tax deductions on taxable income, which in total can reach up to €10,000 for the installation of a photovoltaic system.
This benefit:
• does not constitute a sponsorship,
• does not depend on the announcement of a Grants Plan,
• and constitutes a tax right of citizens.
SEAPEK also clarifies that self-consumption is not abolished, frozen or cancelled.
"It remains one of the most powerful tools for reducing energy costs, strengthening energy autonomy and shielding households against the uncertainty of the energy market. The public debate on energy must be based on knowledge, data and transparency, otherwise confusion and fear are caused," it is underlined in conclusion.
(Source: CNA)
