The Nigerian Electricity Regulatory Commission (NERC) has begun implementing its Net Billing Regulations 2026, introducing a new system that allows qualified electricity consumers to generate renewable energy for personal use and sell excess power back to distribution companies.
The policy creates a framework for “prosumers” — individuals or businesses that both consume and produce electricity — enabling them to feed surplus energy, particularly from solar photovoltaic systems, into the electricity distribution network and receive credits for it.
NERC announced the development in a public notice shared on its official X account, describing the initiative as a major step toward encouraging decentralized electricity generation and expanding the use of renewable energy across the country.
According to the commission, the regulations are aimed at increasing renewable energy adoption, improving energy reliability and security, attracting private investment in distributed generation, reducing greenhouse gas emissions, and ensuring smoother integration of renewable energy into existing power networks.
Under the new arrangement, only customers connected to a distribution company’s network and operating renewable energy systems that meet approved technical standards will be eligible to participate. The framework applies to renewable energy installations with capacities ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp).
Interested participants must obtain approval from their distribution company, undergo a technical feasibility assessment, sign a Net Billing Agreement, and complete registration with NERC before joining the scheme.
The commission also stated that approved participants will receive bidirectional net meters capable of measuring electricity imported from the grid as well as energy exported back to it. Excess electricity supplied to the network will be credited based on tariffs approved by NERC.
The new regulations are expected to encourage greater investment in solar and other renewable energy technologies, reduce pressure on the national grid, and provide commercial and industrial consumers with an opportunity to earn from excess electricity generation.
Industry stakeholders believe the framework could significantly boost embedded renewable energy projects while helping distribution companies access additional sources of electricity within their networks.
