The Nigerian Electricity Regulatory Commission (NERC) has introduced the Net Billing Regulations 2026, a groundbreaking policy that permits electricity consumers to generate renewable energy and sell any excess power back to the national grid. This initiative is expected to accelerate investment in distributed generation and reduce dependence on conventional electricity sources.
Policy Announcement
In a statement posted on its verified X handle on Wednesday, NERC explained that the regulation aims to expand renewable energy use, improve electricity reliability, and encourage private investment in distributed power generation. The 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."
Eligibility Criteria
Under the framework, eligible electricity users known as prosumers can install solar photovoltaic systems for personal use and export excess energy to their distribution companies. To qualify, customers must be connected to a distribution company's network, install renewable energy systems that meet regulatory standards, and obtain approval from their electricity distributor. Systems must fall within an installed capacity range of 50 kilowatt-peak (kWp) to 1.5 megawatt-peak (MWp). Participants are also required to sign a Net Billing Agreement and register with NERC after approval.
Benefits for Consumers
For households, businesses, and industrial users, the regulation offers an opportunity to reduce electricity bills by consuming self-generated power and earn credits for surplus electricity supplied to the grid. Approved users will be equipped with bidirectional metering devices that measure both electricity consumed from the grid and power exported back into it.
Objectives of the Regulation
The commission highlighted several goals of the Net Billing Regulations 2026. These include promoting the adoption of renewable energy technologies, enhancing energy security and reliability for electricity consumers, encouraging private sector participation in distributed generation, supporting the reduction of greenhouse gas emissions, and facilitating efficient integration of renewable energy systems into distribution networks.
The regulation is expected to accelerate rooftop solar adoption and gradually shift Nigeria toward a more decentralised electricity generation system. This development is particularly important for consumers seeking to reduce reliance on the national grid and embrace cleaner, more sustainable energy solutions.
Related Developments
In a related move, NERC recently ordered the registration of private transmission substations. Legit.ng earlier reported that the commission introduced a new directive requiring owners of privately operated transmission substations connected to Nigeria's national grid to formally register and obtain regulatory approval. The directive, titled Order on the Registration and Authorisation of Grid-Connected Private Transmission Substations (NERC/2026/013), took effect on March 9, 2026, and aims to strengthen oversight of privately owned substations that supply electricity directly to large power consumers.
