Electricity in Cyprus for low-consumption households is 86.1% more expensive than the EU average — STUDY

Electricity in Cyprus costs more than the European Union average, and for households with the lowest consumption the gap reaches 86.1% — the worst figure in the EU. These data are presented in the European Commission’s report on Cyprus as part of the 2026 European Semester.

Overall, the price per kilowatt-hour on the island is approximately 7.5% above the EU average. The gap is significantly larger for businesses: from 47.6% to 72.7%, depending on consumption volumes, with energy-intensive industries bearing the greatest burden.

The share of renewable energy sources is nevertheless growing. In 2025, they accounted for 27.4% of Cyprus’s electricity mix, compared with 24% a year earlier, while installed capacity reached 1,042 MW.

At the same time, curtailment is also increasing. The amount of green energy that has to be disconnected from the grid rose by 83% over the year — from 167 GWh to 306 GWh. Such disconnections occur when the system cannot absorb all the electricity generated by solar power plants.

The European Parliament Research Service (EPRS) estimates the untapped potential of rooftops in its report: there are around 271 million rooftops in the European Union on which up to 2,300 GW of solar panels could be installed, generating approximately 2,750 TWh of electricity per year. Panels are currently installed on only one in ten rooftops.

The EU’s target is 700 GW of solar capacity by 2030, compared with 406 GW in 2025, while residential rooftops currently account for just 89 GW. Equipment costs €900–1,300 per kilowatt of installed capacity, a typical home installation costs €3,000–4,000, a battery adds another €4,000–5,000, and balcony systems start at approximately €200.