Consumers can sell excess solar power to discos — FG

The Nigerian Electricity Regulatory Commission has commenced implementation of the Net Billing Regulations 2026, creating a framework that will allow eligible electricity consumers with renewable energy systems, especially solar installations, to generate electricity for personal use and sell excess power to electricity distribution companies.

The development is expected to accelerate renewable energy adoption across Nigeria, encourage private investment in electricity generation and provide additional power supply to distribution networks.

In a public notice titled “Commencement of the Net Billing Regulations 2026” released on Wednesday, the commission informed electricity consumers, distribution companies, renewable energy developers, commercial and industrial customers, and the general public about the new regulatory framework.

FG introduces “prosumer” electricity model

According to NERC, the framework is designed to transform eligible electricity customers into “prosumers” — consumers who both use and generate electricity.

The commission stated that participating customers must operate renewable energy systems with a minimum installed capacity of 50 kilowatt peak and a maximum of 1.5 megawatt peak.

The regulation allows eligible electricity customers to generate electricity from renewable energy sources, particularly solar photovoltaic systems, for personal consumption while exporting excess energy into the distribution network under a net billing arrangement.

Under the system, consumers first use electricity generated from their solar installations. Any excess power produced can then be supplied to the electricity grid through specially installed bidirectional meters.

How the Net billing system works

NERC explained that the bidirectional meters will measure both electricity consumed from the grid and electricity exported into the network.

The exported electricity will be credited based on tariffs approved by the commission.

The framework marks a major shift in Nigeria’s electricity sector by allowing consumers to become small-scale power producers capable of supplying electricity back into the grid.

Industry experts believe the initiative will benefit factories, shopping malls, universities, hospitals, industrial estates, telecom facilities and large commercial organisations already operating substantial solar energy systems.

For many of these institutions, solar installations often generate surplus electricity during periods of lower activity, especially weekends and peak daylight hours.

Objectives of the new regulation

According to NERC, the Net Billing Regulations 2026 are designed to:

• Promote renewable energy adoption
• Improve energy security and reliability
• Encourage private sector participation in power generation
• Reduce greenhouse gas emissions
• Support efficient integration of renewable energy into distribution networks

The commission said the initiative aligns with broader national efforts to increase renewable energy contributions within Nigeria’s electricity mix and support long-term energy transition goals.

Eligibility and technical requirements

To participate in the scheme, consumers must meet several conditions outlined by the regulator.

NERC stated that eligible participants must:

• Be connected to a distribution company’s network
• Install renewable energy systems that comply with technical standards
• Obtain approval from the relevant Disco
• Sign a net billing agreement
• Register with the commission

Interested customers are also expected to undergo technical feasibility assessments before joining the programme.

The commission added that successful applicants would receive the required bidirectional metering infrastructure for implementation.

“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,” NERC stated.

Push for alternative energy solutions

The introduction of the framework comes amid growing demand for alternative energy solutions as households and businesses continue seeking more reliable and cost-effective electricity sources.

Nigeria’s electricity sector has long struggled with inadequate generation capacity, transmission bottlenecks and distribution challenges, forcing many consumers to rely on diesel generators, petrol generators and increasingly solar-powered systems.

NERC believes the new net billing model will help unlock private investment in renewable energy while easing pressure on the national grid.