The Nigerian Electricity Regulatory Commission (NERC) has announced the commencement of the Net Billing Regulations 2026, a new framework that will allow eligible electricity customers to generate their own renewable energy and sell surplus power back to the national grid.
In a public notice issued on Wednesday, June 3, 2026, NERC said the regulations are designed to promote renewable energy adoption, enhance energy security, and encourage private sector participation in distributed generation, while also supporting the reduction of greenhouse gas emissions.
Under the new rules, qualifying electricity consumers—referred to as “prosumers”—can install renewable energy systems, primarily solar photovoltaic (PV) systems, for their own use.
The Commission said any excess electricity generated can be exported to the distribution network under a net billing arrangement, for which the prosumer will receive credits based on an approved export tariff.
Eligibility and capacity limits
To participate in the Net Billing Scheme, customers must meet several conditions. They must be connected to a Distribution Licensee’s (DisCo) network, install a renewable energy system that complies with all applicable technical standards, and obtain approval from their DisCo.
The regulations specify that eligible renewable energy systems must have a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum of 1.5 megawatt peak (MWp). This range targets small to medium-scale commercial and industrial customers, as well as larger residential prosumers.
Application process
It said interested customers are required to apply to their respective DisCo for a technical feasibility assessment. Upon approval, they must execute a Net Billing Agreement with the DisCo and subsequently register with NERC in accordance with the regulations.
NERC explained that approved participants will be provided with appropriate bidirectional net metering facilities, which measure both the electricity imported from the grid and the surplus electricity exported to it.
“Upon approval and execution of a Net Billing Agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations.
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“Approved participants shall be provided with appropriate bidirectional net metering facilities to measure electricity imported from and exported to the distribution network. Exported energy shall be credited in accordance with the export tariff approved by the Commission,” it stated.
Industry implications
NERC stated that the regulations aim to facilitate the efficient integration of renewable energy systems into distribution networks, a critical step as Nigeria seeks to diversify its energy mix and improve unreliable power supply.
Industry analysts note that while the 50 kWp minimum threshold excludes most residential households, the policy could unlock significant investment from commercial entities, factories, and real estate developers seeking to reduce reliance on diesel generators and earn credits for surplus solar power.
The Commission urged all electricity consumers, distribution companies, renewable energy developers, and commercial and industrial customers to review the new regulations and begin the application process through their respective DisCos.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X