For several years, net metering was the simplest way for households to adopt renewable energy. Solar panels generated electricity, any surplus was fed into the grid, and this energy was offset against electricity used at a later time. The entire process was simple and automatic.

This model worked well, particularly while the share of renewable energy in the electricity system remained relatively low. Today, however, circumstances have changed. The rapid growth of solar power, combined with the limitations of the existing electricity grid, which needs to be upgraded by the state, a process that will take years, has made the transition to net billing inevitable.

The key question now is how consumers can navigate the new net-billing environment effectively and make the most of it.

What Is Net Billing? A Simple Explanation

Under net billing:

• You use the electricity your system generates.
• Any surplus electricity is sold to the grid.
• When your solar production is insufficient, you purchase electricity from the Electricity Authority of Cyprus (EAC) at the applicable tariff.

Unlike net metering, net billing does not offer “virtual storage.” The electricity generated by your solar panels is most valuable when you use it as it is being produced. After sunset, you either purchase electricity from the grid or use energy previously stored in a battery.

Does Net Billing Make Financial Sense?

The short answer is yes, but it is not an autopilot solution.

Its financial performance depends heavily on when you use electricity.

For a typical Cypriot household consuming 700–900 kWh per month and equipped with a 5 kWp solar system, electricity generation peaks between 10:00 a.m. and 4:00 p.m.

If most of the household’s electricity is consumed in the evening, the solar energy produced during the day is exported to the grid at a relatively low value.

However, if major electricity loads, such as the water heater, washing machine, dishwasher or electric-vehicle charger, are shifted to daytime hours, self-consumption can reach 70–80%, without any additional investment.

In short, some adjustment is required.

The Role of Battery Storage

A battery is not essential for every household.

For homes with high evening electricity consumption, however, battery storage can provide greater control, predictability and energy independence.

A 5 kWp solar system combined with a 7–10 kWh battery may cover up to 80–90% of a household’s annual electricity needs, significantly reducing the amount of electricity purchased from the grid during evening hours.

Net Billing May Offer Greater Long-Term Stability

Solar panels have an operating life of more than 25 years, while regulations can change over time.

Net billing is based on the actual value of the electricity produced and consumed, rather than on special grid-offset arrangements. This makes it a potentially more resilient model in the long term.

Less uncertainty, greater transparency.

Conclusion

Net billing is not necessarily worse than net metering. It is simply different.

It can continue to deliver significant benefits, provided that each system is designed around the household’s actual lifestyle and electricity-consumption patterns.

Today, accurate information and realistic planning, as well as the choice and adoption of the right technology, are more important than ever.

For more information and practical guidance, the EnergyIntel team can advise you based on your household’s individual energy profile. Contact us to learn more.