Key points
- Nigerians can now export surplus solar power to distribution companies as the Nigerian Electricity Regulatory Commission begins implementing the Net Billing Regulations 2026.
- The new regulatory framework enables eligible electricity consumers, classified as prosumers, to generate renewable energy primarily for self-consumption.
- 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).
- Approved participants will be provided with bidirectional net metering facilities to measure the electricity imported from and exported to the grid.
- Exported energy from qualified prosumers will be credited in accordance with the export tariff approved by the commission.
Main Story
The Nigerian Electricity Regulatory Commission (NERC) has commenced the implementation of the Net Billing Regulations 2026, allowing citizens to export surplus power generated from solar systems to distribution companies (DisCos).
The framework is designed to enable eligible electricity consumers to generate renewable energy for their own consumption. In an official notice issued on Wednesday, the regulatory body stated that the newly introduced regulations would allow qualified customers, designated as prosumers, to generate electricity primarily through solar photovoltaic installations.
The commission explained that the regulations are aimed at promoting the widespread adoption of renewable energy technologies, enhancing energy security and reliability for consumers, and encouraging private sector participation in distributed generation. Furthermore, NERC noted that the framework will support the ongoing reduction of greenhouse gas emissions while facilitating the efficient integration of clean energy systems directly into existing distribution networks.
To qualify for participation under the new scheme, applicants must be connected to the network of a local distribution company, install renewable energy systems that fully comply with applicable technical and regulatory standards, and obtain formal approval from the relevant DisCo.
NERC specified that eligible renewable energy systems must maintain a minimum installed capacity of 50 kilowatt peak (KWp) and a maximum capacity of 1.5 megawatt peak (MWp). Prospective participants are also required to execute a net billing agreement and register their systems with the commission.
According to the official notice, interested customers must first apply to their respective distribution licensees to undergo a technical feasibility assessment.
Once approved, successful participants will be equipped with bidirectional net metering facilities designed to accurately measure electricity imported from and exported to the distribution network. NERC added that all exported energy shall be credited in strict accordance with the export tariff approved by the commission.
The Issues
- Integrating decentralized renewable energy systems into existing distribution networks without compromising grid stability.
- Ensuring all prosumer installations strictly comply with established technical and regulatory safety standards.
- Managing the logistics of technical feasibility assessments and the rollout of bidirectional net metering facilities by DisCos.
What’s Being Said
- Outlining the core purpose of the newly introduced regulatory framework, the Nigerian Electricity Regulatory Commission stated: “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,”
- Defining the broader environmental and economic goals behind the 2026 policy rollout, the commission explained: “The objectives of the Net Billing Regulations 2026 are to promote the adoption of renewable energy technologies, enhance energy security and reliability for electricity consumers, encourage private sector participation in distributed generation.”
- Explaining the mandatory administrative workflow that prospective solar prosumers must follow to join the network, the notice added: “Interested customers are required to apply to their Distribution Licensee for a technical feasibility assessment. Upon approval and execution of a Net Billing Agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations.”
What’s Next
- Interested electricity consumers will begin applying to their respective DisCos for technical feasibility assessments.
- DisCos will deploy bidirectional net metering facilities to approved prosumers to monitor power exchanges.
- NERC will oversee the registration of approved applicants and enforce compliance with the approved export tariff rates.
Bottom Line
NERC has launched the Net Billing Regulations 2026, enabling qualified solar prosumers with systems between 50 KWp and 1.5 MWp to sell surplus electricity back to DisCos via bidirectional meters under an approved tariff structure.
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