The Nigerian Electricity Regulatory Commission (NERC) has introduced the Net Billing Regulations 2026, a landmark policy expected to transform electricity consumers from mere users into power producers.
The new regulations establish a framework that allows eligible electricity customers, known as “prosumers,” to generate electricity from renewable energy sources, particularly solar photovoltaic systems, for their own consumption and export surplus energy to the national distribution network for financial credits.
Under the regulations, customers with renewable energy systems ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp) can participate in the scheme after obtaining approval from their distribution companies (DisCos), signing a Net Billing Agreement, and registering with NERC.
The Commission said the framework is designed to promote renewable energy adoption, attract private sector investment in distributed generation, support greenhouse gas emission reduction efforts, and facilitate the efficient integration of clean energy into distribution networks.
According to the Commission,
a key feature of the scheme is the installation of bidirectional meters that will accurately measure electricity imported from and exported to the grid.
It stated that participants will receive credits for excess electricity supplied to the network based on export tariffs approved by NERC.
It stated further that the policy is expected to create new investment opportunities in the solar energy value chain, stimulate demand for renewable energy technologies, and provide businesses with an additional revenue stream from excess power generation.
To participate, NERC said
Interested customers must be connected to a DisCo’s network, install renewable energy systems that meet prescribed technical standards, and undergo a technical feasibility assessment by their respective distribution company.
It noted that successful applicants would be enrolled in the scheme upon execution of a Net Billing Agreement and subsequent registration with the Commission.
