The Nigerian Electricity Regulatory Commission (NERC) has launched the Net Billing Regulations 2026, creating a framework that allows eligible electricity consumers to generate renewable energy for their own use and sell excess power to the grid.
The commission, in a public notice announcing the commencement of the regulations, said the scheme is designed to promote the adoption of renewable energy technologies, particularly solar photovoltaic systems, while improving energy security and reliability across the country.
Under the new framework, eligible customers, known as “Prosumers,” can generate electricity from renewable energy sources for self-consumption and export surplus energy to distribution networks under a net billing arrangement.
Promoting Renewable Energy Adoption
NERC said the regulations seek to encourage greater use of renewable energy technologies, attract private sector investment in distributed generation, reduce greenhouse gas emissions, and support the efficient integration of renewable energy systems into distribution networks.
The commission noted that the initiative is also expected to enhance energy security and provide consumers with more reliable electricity supply options.
Who Can Participate?
To qualify for the scheme, customers must be connected to a distribution company’s network and install renewable energy systems that meet all applicable technical and regulatory standards.
According to NERC, eligible renewable energy systems must have a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp).
Participants must also obtain approval from the relevant distribution licensee, execute a Net Billing Agreement, and complete registration with the commission.
Application and Approval Process
The commission advised interested customers to apply to their distribution company for a technical feasibility assessment.
Once approval is granted and a Net Billing Agreement is executed, applicants will be required to register with NERC in line with the provisions of the regulations.
Metering and Energy Credits
NERC said approved participants will be provided with bidirectional net metering facilities to accurately measure electricity imported from and exported to the distribution network.
The commission added that electricity exported to the grid will attract credits based on export tariffs approved by NERC.
The Net Billing Regulations 2026 are expected to expand opportunities for businesses and large electricity consumers to invest in renewable energy while contributing surplus power to the national electricity network.
