The Nigerian Electricity Regulatory Commission (NERC) has commenced implementation of its Net Billing Regulations 2026, a policy framework that allows electricity consumers to generate their own power from renewable energy sources and sell excess electricity back to the national grid.
In a statement posted on its verified X handle on Wednesday, the commission said the regulation is designed to expand renewable energy adoption, improve electricity reliability, and encourage private sector investment in distributed power generation.
Under the new framework, eligible electricity users, described as “prosumers,” will be able to install solar photovoltaic systems for personal consumption and export surplus energy to their distribution companies under a net billing arrangement.
“The Regulations establish a framework that enables eligible electricity customers (prosumers) to generate electricity from renewable energy sources, primarily solar photovoltaic systems, for their own consumption and export surplus energy to the distribution network under a Net Billing Arrangement,” NERC said.
According to the commission, the objectives of the policy include promoting renewable energy adoption, enhancing energy security and reliability, encouraging private sector participation in distributed generation, reducing greenhouse gas emissions, and improving integration of renewable energy into distribution networks.
For consumers, the policy means households, businesses and industrial users who invest in renewable energy—particularly solar systems—can reduce electricity bills by using self-generated power and earn credits for surplus electricity exported to the grid.
To participate, customers must be connected to a distribution company’s network, install renewable energy systems that meet regulatory standards, and obtain approval from their electricity distributor.
Eligible systems must fall within an installed capacity range of 50 kilowatt-peak (kWp) to 1.5 megawatt-peak (MWp).
Participants are also required to sign a Net Billing Agreement and register with NERC after receiving approval.
NERC said approved users will be fitted with bidirectional meters capable of measuring both electricity drawn from the grid and power exported to it.
“Exported energy shall be credited in accordance with the export tariff approved by the Commission,” it said.
The commission added that all applicants must first undergo technical feasibility assessments by their distribution companies before final approval.
The new regulation is expected to boost rooftop solar adoption and support a gradual shift toward a more decentralised electricity generation system across the country.
