The Nigerian Electricity Regulatory Commission (NERC) has commenced implementation of its Net Billing Regulations 2026, a policy framework designed to enable electricity consumers generate power from renewable sources and supply excess energy to the national grid.
In a statement shared on its verified X handle on Wednesday, June 3, the commission said the policy is aimed at deepening renewable energy adoption, improving electricity reliability, and attracting private investment into decentralised power generation.
Under the new arrangement, electricity users now described as “prosumers” are allowed to install solar photovoltaic systems for personal consumption and export any surplus electricity to distribution companies under a net billing structure.
“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,” NERC said.
The commission explained that the initiative is part of broader efforts to strengthen energy security, reduce carbon emissions, and encourage private sector participation in renewable energy development.
“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.
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With the new policy, households, businesses, and industrial users that invest in renewable energy systems, especially solar, can lower their electricity costs by consuming self-generated power. They will also earn credits for any excess energy exported to the grid.
To qualify, consumers must be connected to a licensed distribution company, install approved renewable energy systems, and obtain regulatory clearance from their electricity provider.
Eligible installations must fall within a 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 receiving approval.
The commission further stated that approved users will be fitted with bidirectional meters that track both electricity consumed from the grid and surplus power fed back into it.
“Exported energy shall be credited in accordance with the export tariff approved by the Commission,” it stated.
NERC added that distribution companies will conduct technical feasibility assessments before granting final approval to applicants.
The regulation is expected to accelerate solar adoption across the country and gradually shift Nigeria toward a more decentralised and cleaner electricity generation system.