NERC unveils Net Billing Regulation, allows consumers sell excess solar power to grid

By Gold Jeremiah 

The Nigerian Electricity Regulatory Commission (NERC) has introduced the Net Billing Regulations 2026, a new framework that enables electricity consumers to generate power from renewable energy sources and sell excess energy back to the national grid.

In a statement shared on its verified X account on Wednesday, the commission said the regulation is designed to promote the adoption of renewable energy, improve electricity reliability, and attract private sector investment in distributed power generation.

Under the new policy, eligible electricity users, known as “prosumers,” can install renewable energy systems—primarily solar photovoltaic (PV) installations—for their own consumption while exporting surplus electricity to their distribution companies through a net billing arrangement.

According to NERC, the regulation provides a structured framework for integrating customer-generated renewable energy into the distribution network, while supporting cleaner energy use and enhancing energy security for consumers.

The commission noted that the initiative will allow households, businesses, and industrial customers that invest in solar power systems to reduce their dependence on grid electricity, lower energy costs, and earn credits for excess power supplied to the network.

To qualify for participation, customers must be connected to a distribution company’s network, install renewable energy systems that meet regulatory requirements, and secure approval from their electricity distributor. 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 register with NERC after receiving approval. In addition, distribution companies will conduct technical feasibility assessments before granting final clearance for grid connection.

NERC explained that approved customers will be provided with bidirectional meters capable of measuring both electricity imported from the grid and energy exported to it. The commission added that exported electricity will be credited based on tariffs approved by the regulator. The new regulation is expected to accelerate rooftop solar deployment and support Nigeria’s transition toward a more decentralised and sustainable electricity system.