The Nigerian Electricity Regulatory Commission (NERC) has commenced the implementation of its Net Billing Regulations 2026, a new policy that allows electricity consumers who generate power from renewable energy sources to sell excess electricity back to the national grid.
In a statement shared on its verified X handle on Wednesday, the commission said the regulation is designed to promote the use of renewable energy, improve electricity reliability, and encourage private sector investment in distributed power generation.
Under the framework, eligible electricity consumers, known as “prosumers,” can install solar photovoltaic systems for their personal electricity needs and export surplus energy to their distribution companies through a net billing arrangement.
“The Regulations establish a framework that enables eligible electricity customers (Prosumers) to generate electricity from renewable energy sources, primarily solar photovoltaic systems, for their own consumption and export surplus energy to the distribution network under a Net Billing Arrangement,” the commission stated.
According to NERC, the policy aims to encourage the adoption of renewable energy technologies, improve energy security and reliability, increase private sector participation in electricity generation, reduce greenhouse gas emissions, and support the efficient integration of renewable energy into distribution networks.
Under the new arrangement, households, businesses, and industrial consumers who invest in renewable energy systems can reduce their electricity expenses by using self-generated power while earning credits for excess electricity supplied to the grid.
To qualify for the programme, applicants must be connected to a distribution company’s network, install renewable energy systems that meet regulatory requirements, and obtain approval from their electricity distribution company.
NERC stated that eligible systems must have an installed capacity ranging from 50 kilowatt-peak (kWp) to 1.5 megawatt-peak (MWp).
Participants will also be required to sign a Net Billing Agreement and complete registration with the commission after obtaining approval.
The commission explained that approved users will be provided with bidirectional meters capable of measuring both electricity consumed from the grid and electricity exported back to the network.
“Exported energy shall be credited in accordance with the export tariff approved by the Commission,” NERC said.
The regulatory body further noted that prospective participants must undergo technical feasibility assessments conducted by their respective distribution companies before receiving final approval.
The Net Billing Regulations 2026 are expected to accelerate the adoption of rooftop solar systems across the country and support Nigeria’s gradual transition toward a more decentralised and sustainable electricity generation system, particularly for consumers seeking alternatives to the national grid.
