By Abigail David
The Nigerian Electricity Regulatory Commission (NERC) has commenced implementation of the Net Billing Regulations 2026, a policy that allows eligible electricity consumers with renewable energy systems to sell surplus power generated from their installations to electricity distribution companies (Discos).
The new framework is designed to encourage the adoption of renewable energy, attract private investment in power generation, and increase electricity supply through distributed generation.
In a public notice issued on Wednesday, NERC said the regulation enables eligible customers, referred to as “prosumers,” to generate electricity for their own consumption and export excess energy to the distribution network under a net billing arrangement.
According to the commission, participants must operate renewable energy systems with installed capacities ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp), making the scheme primarily suitable for medium- and large-scale consumers.
Under the arrangement, electricity generated from solar installations will first be used by the customer. Any excess power can then be supplied to the distribution network through bidirectional meters that record both imported and exported electricity.
NERC stated that exported energy will be credited based on tariffs approved by the commission, creating an opportunity for businesses and institutions with large solar installations to earn revenue from unused electricity.
The commission said the initiative aims to promote renewable energy adoption, improve energy security, encourage private sector participation in power generation, reduce greenhouse gas emissions, and support the integration of renewable energy into distribution networks.
Experts believe the scheme could benefit factories, universities, hospitals, shopping malls, telecommunications facilities, industrial estates, and other large organisations that often generate surplus solar power during periods of low demand.
To participate, customers must be connected to a Disco’s network, meet technical and regulatory requirements, obtain approval from their distribution company, sign a net billing agreement, and register with NERC.
Applicants will also undergo a technical feasibility assessment before approval. Successful participants will be provided with bidirectional metering infrastructure required for the programme.
The regulation comes as households and businesses increasingly turn to alternative energy sources amid persistent challenges in Nigeria’s electricity sector, including inadequate generation, transmission bottlenecks, and distribution constraints.
NERC said the framework is expected to unlock private investment in renewable energy while supporting Nigeria’s broader energy transition objectives.
