By Abdullahi Lukman
The Nigerian Electricity Regulatory Commission (NERC) has commenced the implementation of the Net Billing Regulations 2026, enabling eligible electricity consumers with renewable energy systems to generate power for their own use and sell excess electricity to distribution companies.
The new framework is expected to boost the adoption of renewable energy, attract private investment in electricity generation, and increase power supply to the national distribution network.
It allows qualified consumers, known as “prosumers,” to both consume and produce electricity, primarily through solar photovoltaic systems.
According to NERC, eligible participants must operate renewable energy systems with installed capacities ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp).
Surplus electricity generated beyond a customer’s consumption needs can be exported to the distribution network and credited under commission-approved tariffs.
The exported power will be measured using bidirectional meters capable of recording electricity drawn from the grid and electricity supplied to it.
Customers will receive credits for the energy exported, creating an opportunity for businesses and institutions to earn value from excess power generation.
NERC said the scheme is designed to promote renewable energy adoption, improve energy security and reliability, encourage private-sector participation in distributed generation, reduce greenhouse gas emissions, and support the integration of renewable energy into distribution networks.
The commission noted that interested customers must be connected to a distribution company’s network, obtain approval from the relevant distribution licensee, sign a net billing agreement, and register with NERC.
Applicants will also undergo technical feasibility assessments before joining the programme.
Industry experts believe the initiative will particularly benefit factories, universities, hospitals, shopping malls, telecommunications facilities, industrial estates, and other large commercial enterprises with substantial solar installations that often generate excess electricity during peak sunshine periods.
The regulation represents a major shift in Nigeria’s electricity market by allowing consumers to become small-scale power producers.
It also aligns with broader efforts to expand renewable energy use and support the country’s energy transition goals amid persistent challenges in electricity generation, transmission, and distribution.
