NERC ROLLS OUT NET BILLING SCHEME, ALLOWS CONSUMERS TO SELL EXCESS SOLAR POWER
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By; Sunmola Ganiyat
The Nigerian Electricity Regulatory Commission (NERC) has announced the commencement of the Net Billing Regulations 2026, a new framework that enables eligible electricity consumers to generate renewable energy for their own use and sell surplus power to the national grid.
In a statement posted on its official X account on Wednesday, the commission said the regulations are aimed at accelerating the adoption of renewable energy technologies, improving energy reliability, encouraging private investment in power generation, reducing carbon emissions and supporting the integration of clean energy into distribution networks.
Under the scheme, qualified customers—referred to as “Prosumers”—will be permitted to generate electricity from renewable energy sources, particularly solar photovoltaic systems, for personal consumption while exporting excess electricity to their distribution companies through a net billing arrangement.
According to NERC, participants must be connected to a distribution company’s network and ensure their renewable energy systems meet all technical and regulatory requirements.
The commission added that prospective participants must obtain approval from the relevant distribution company, sign a Net Billing Agreement and complete registration with NERC before joining the programme.
NERC stated that only renewable energy systems with a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp) will qualify for the initiative.
Interested customers are required to submit applications to their distribution companies for technical feasibility assessments. Successful applicants will then proceed with the execution of a Net Billing Agreement and complete the registration process with the commission.
The new regulation is expected to encourage wider adoption of solar energy and provide consumers with an opportunity to earn credits or compensation for excess electricity supplied to the grid while contributing to Nigeria’s transition toward cleaner energy sources.
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