NERC Launches Net Billing Scheme, Allows Consumers to Sell Excess Solar Power to National Grid
The Nigerian Electricity Regulatory Commission (NERC) has introduced the Net Billing Regulations 2026, a new framework that allows eligible electricity consumers to generate renewable energy for personal use and sell excess power to the national grid.
NERC announced the commencement of the scheme in a statement shared on its official X handle on Wednesday.
According to the commission, the regulations are aimed at promoting the adoption of renewable energy technologies, improving energy security and reliability, encouraging private sector participation in electricity generation, reducing greenhouse gas emissions and supporting the integration of renewable energy into distribution networks.
Under the framework, eligible customers, known as “Prosumers,” will be permitted to generate electricity from renewable energy sources, particularly solar photovoltaic systems, for their own consumption while exporting surplus energy to their distribution companies through a net billing arrangement.
NERC explained that participants must be connected to a distribution company’s network and install renewable energy systems that comply with established technical and regulatory standards.
Other requirements include obtaining approval from the relevant distribution company, executing a Net Billing Agreement and registering with the commission.
The regulator stated that renewable energy systems eligible for the programme must have a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp).
It added that interested customers are required to apply to their distribution companies for a technical feasibility assessment.
Successful applicants will proceed to sign a Net Billing Agreement with their distribution company before completing registration with NERC.
The commission expressed confidence that the initiative would accelerate the adoption of renewable energy, expand electricity access and create opportunities for consumers to participate more actively in Nigeria’s evolving power sector.