The Nigerian Electricity Regulatory Commission has commenced its Net Billing Regulations 2026, a policy framework that allows electricity consumers to generate their own power from renewable energy sources and sell surplus electricity back to the national grid.
In a statement posted on its verified X handle on Wednesday, the commission said the regulation is aimed at expanding renewable energy use, improving electricity reliability, and encouraging private investment in distributed power generation.
Under the new framework, eligible electricity users, described as “prosumers,” can install solar photovoltaic systems for personal use and export excess energy to their distribution companies under a net billing arrangement.
“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,” the commission said.
“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; support the reduction of greenhouse gas emissions; and facilitate efficient integration of renewable energy systems into distribution networks,” it added.
For consumers, the development means households, businesses, and industrial users who invest in renewable energy, particularly solar systems, can now reduce their electricity bills by consuming self-generated power and earn credits for any excess electricity supplied to the grid.
To participate in the scheme, 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.
NERC explained that approved users will be equipped with bidirectional metering devices that measure both electricity consumed from the grid and power exported back into it.
“Exported energy shall be credited in accordance with the export tariff approved by the Commission,” it said.
The commission added that applicants must first undergo technical feasibility assessments by their distribution companies before final approval is granted.
The new regulation is expected to accelerate rooftop solar adoption and gradually shift Nigeria toward a more decentralised electricity generation system, particularly among consumers seeking to reduce reliance on the national grid.
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