9% VAT on home solar in Cyprus: what becomes cheaper?

What changed, and when?

Decree K.D.P. 363/2026, published in Official Gazette No. 6053 on 16 October 2026, adds domestic customers’ photovoltaic systems for self-consumption at their residences to the reduced-rate category. The applicable rate is now 9% instead of 19% where the conditions are met.

The decree does not state an expiry date. That is not a guarantee that tax rules will never change: the treatment of your transaction should be confirmed when the proposal and invoice are prepared.

What is included — and what is not?

The industry clarification supplied to UNLIMITED says the reduction covers both the purchase and installation of an eligible domestic PV system, including:

• Photovoltaic panels and mounting structures.
• Cables and the system’s other electrical equipment.
• The inverter and installation of the PV system.

Batteries and EV charging equipment are not included in this specific reduction under the current clarification. Adding only a battery to an existing installation therefore does not qualify through this measure. Further clarification on batteries has been requested from the Tax Department.

For a solar-and-battery system, ask for the PV portion, storage and any EV charger to be identified separately, with the VAT rate and total for each. A reduced PV rate does not mean that the entire hybrid package receives the same rate.

How much could you save?

Take an illustrative €10,000 excluding VAT for an entirely eligible PV system, with the same equipment, work and net price in both cases:

• At 19%: €1,900 VAT → €11,900 total.
• At 9%: €900 VAT → €10,900 total.
• Difference: €1,000.

The rate falls by 10 percentage points. The final VAT-inclusive price in this example falls by approximately 8.4%, not 10%. This saving applies to the eligible portion; it is not a quotation for a particular system or a blanket discount on batteries and chargers.

Second homes, off-grid systems and pools

According to the same clarification, eligibility is not limited to one residence per person. More than one home can qualify if each meets the domestic-consumer conditions.

Off-grid PV and photovoltaic pool-pumping systems can also qualify when the energy is used for domestic consumption. Commercial and professional uses are excluded. A pool or a residential-looking building alone does not establish eligibility: the actual use matters.

Buying through a developer

The clarification distinguishes two transactions: invoicing a developer remains at 19%, even for residential development; a developer’s subsequent separate PV invoice to an eligible domestic customer can use 9% where the conditions are met. Ask for the PV scope and VAT to be clearly identified rather than assuming that every charge in a property purchase receives the reduced rate.

What to check in your proposal

• The domestic use of the property and the recipient of the invoice.
• What equipment and installation work are included in the PV portion.
• Separate prices and VAT treatment for storage, charging and other additions.
• The net price, VAT amount and final total, so competing proposals can be compared fairly.

Send UNLIMITED your electricity bill, roof photos and a Google Maps pin for the property. We will prepare an itemised proposal for your configuration and confirm the applicable VAT treatment. For an order or deposit spanning the rule change, ask for the specific invoicing position rather than assuming an automatic recalculation.

Sources and further reading

• Official Gazette: Decree K.D.P. 363/2026, published 16 October 2026 (Greek PDF)
• Cyprus VAT Law 95(I)/2000: Article 18A and Twelfth Schedule (Greek)

Checked on 1 November 2026. The decree is linked above. Detailed equipment and invoicing points use the industry clarification supplied to UNLIMITED, based on telephone contact with the Tax Department; written confirmation is still being sought. Confirm eligibility and VAT treatment in your itemised proposal before ordering.