The Nigerian Electricity Regulatory Commission (NERC) has commenced the implementation of the Net Billing Regulations 2026, a framework that allows eligible electricity consumers to generate renewable energy for personal use and sell excess power back to the national grid through their electricity distribution companies (DisCos).
The regulation is designed to encourage the adoption of renewable energy, particularly solar power, while improving electricity supply and reducing pressure on the national grid.
Under the framework, consumers whose renewable energy systems generate more electricity than they consume can export the surplus energy to their DisCo and receive credits through a regulated billing arrangement.
The initiative introduces the concept of a “Prosumer” in Nigeria’s electricity market, allowing participants to function as both consumers and producers of electricity.
However, the regulation is currently targeted at larger renewable energy installations and not typical small-scale residential solar users.
To qualify for participation, consumers must already be connected to a distribution network and operate a renewable energy system with an installed capacity of not less than 50 kilowatt-peak (kWp) and not more than 1.5 megawatt-peak (MWp).
Eligible participants are also required to obtain approval from their respective DisCos, sign a Net Billing Agreement, and register with NERC before commencing energy export.
According to the regulation, approved users will be provided with bidirectional meters capable of measuring electricity imported from the grid and electricity exported back to the network.