Nigerians Can Now Sell Excess Solar Power To DisCos — NERC

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ABUJA – The Nigerian Electricity Regulatory Commission (NERC) has commenced the implementation of its Net Billing Regulations 2026, a landmark policy that allows eligible electricity consumers to generate renewable energy for their own use and sell excess power to electricity distribution companies, marking a significant shift toward decentralised power generation in Nigeria.

In a public notice published on its official X account, NERC said the new regulations establish a framework for “prosumers”—customers who both con­sume and produce electricity—to export surplus electricity generated primarily from solar photovoltaic systems into the distribution network under a net billing arrangement.

The initiative is expected to boost in­vestment in renewable energy, reduce pressure on the national grid and pro­vide large electricity consumers with an additional source of revenue from excess power generation.

According to the commission, the regulations are designed to accelerate the adoption of renewable energy tech­nologies, improve energy security and reliability, attract private-sector partici­pation in distributed generation, reduce greenhouse gas emissions and facilitate the efficient integration of renewable energy systems into electricity distribu­tion networks.

Under the new framework, eligible customers must be connected to a distribution company’s network and install renewable energy systems that meet prescribed technical and regulatory standards. ­

The regulations cover re­newable energy systems with a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum of 1.5 megawatt peak (MWp).

Prospective participants will also be required to obtain approv­al from their respective distribu­tion companies, execute a Net Billing Agreement and register with NERC before commencing operations.

The commission said interest­ed customers must first apply to their distribution company for a technical feasibility assessment.

Following approval and the execution of a net billing agree­ment, applicants are expected to complete registration with the regulator in line with the provi­sions of the regulations.

To support the scheme, approved participants will be provided with bidirec­tional net meters capable of measuring electricity im­ported from and exported to the grid.

Energy exported by partici­pants will be credited based on tariffs approved by the commis­sion.

The introduction of net bill­ing is seen as one of the most significant regulatory steps in recent years aimed at expanding renewable energy deployment and encouraging self-genera­tion among commercial and in­dustrial electricity consumers, many of whom have increas­ingly turned to solar energy to mitigate persistent grid supply challenges and rising energy costs.

Industry observers say the framework could stimulate in­vestment in embedded renew­able energy projects, particularly in the commercial and industrial segments, while helping distribu­tion companies access additional power sources within their net­works.

The regulations come as Ni­geria intensifies efforts to diver­sify its energy mix and improve electricity access through clean­er and more sustainable energy solutions.

NERC advised stakeholders seeking further details on the scheme to consult the Net Billing Regulations 2026 available on its official website.