The Nigerian Electricity Regulatory Commission (NERC) has introduced its Net Billing Regulations 2026, a policy framework that allows electricity consumers to generate their own power from renewable energy sources and sell excess electricity back to the national grid.
In a statement posted on its verified X handle on Wednesday, the commission said the regulation is designed to promote renewable energy adoption, improve power reliability, and attract private investment in distributed electricity generation.
Under the framework, eligible electricity users described as “prosumers” will be able to install solar photovoltaic systems for personal consumption and export surplus energy to distribution companies under a net billing arrangement.
NERC explained that the policy establishes a structured system for generating electricity from renewable sources, particularly solar, while enabling consumers to supply excess power back into the grid.
The commission stated that the objectives of the regulations include strengthening energy security, encouraging private sector participation in distributed generation, reducing greenhouse gas emissions, and improving integration of renewable energy into distribution networks.
With the new system, households, businesses, and industries that invest in renewable energy can reduce their electricity bills by using self-generated power and earn credits for any excess electricity supplied to the grid.
To participate, consumers must be connected to a distribution network, install approved renewable energy systems, and obtain clearance from their electricity distribution companies.
NERC said eligible installations must fall within a capacity range of 50 kilowatt-peak to 1.5 megawatt-peak, depending on usage category and approval requirements.
Approved participants will also be fitted with bidirectional meters to track both electricity consumed from the grid and energy exported back to it, with credits applied based on approved export tariffs.
The commission added that all applicants must undergo technical feasibility assessments before final approval, ensuring compatibility with existing grid infrastructure.
The policy is expected to drive wider adoption of rooftop solar systems and support a gradual shift toward a decentralised and more resilient electricity generation model in Nigeria.