Cyprus Solar Capacity Grows In 2025 Despite Record Curtailment And Grid Constraints

The solar energy sector in Cyprus recorded strong growth in 2025, adding around 122 MW of new capacity despite facing serious grid and technical challenges. According to estimates from energy analytics platform CyprusGrid, total renewable energy additions in the country reached 134 MW during the year. Solar power accounted for most of this capacity, while wind energy contributed about 12 MW.

By the end of 2025, Cyprus’s total installed renewable energy capacity stood at 1,139 MW, up from 1,004 MW at the end of 2024. Solar energy continued to dominate the renewable mix, with cumulative installed solar capacity reaching 957 MW. This steady expansion highlights the sector’s resilience, even under difficult operating conditions.

The growth came during a year marked by record levels of energy curtailment. In 2025, nearly 47% of the solar power generated in Cyprus could not be absorbed by the national grid and had to be curtailed to maintain system stability. Such high curtailment levels usually discourage new investments, especially in utility-scale projects. However, developers and consumers adapted by focusing on self-consumption solar systems.

According to industry experts, including Fanos Karantonis from the Cyprus Association of Renewable Energy Enterprises, around 80% of new solar installations in 2025 were self-consumption projects. These systems are designed to generate electricity mainly for on-site use, reducing reliance on the grid. As a result, they face fewer curtailment issues compared to large solar plants that feed power directly into the grid. Self-consumption projects are also financially attractive, as they effectively deliver higher returns than utility-scale projects operating under power purchase agreements.

The policy environment also played a major role in shaping the market. At the end of 2025, the Cypriot government officially ended its net metering and net billing schemes, which had supported rooftop solar adoption for years. These programs were replaced by a new, market-based self-consumption framework starting January 2026. The announcement triggered a surge in applications, with around 12,000 requests submitted in December alone as households rushed to secure the old incentives.

Looking ahead, solar development in Cyprus is expected to continue in 2026. The shift toward a prosumer-driven market, where consumers both produce and use their own electricity, is gaining momentum. While grid constraints remain a key challenge, rising interest in energy independence is likely to keep the country on track toward its renewable energy goals.