Electricity Regulator Introduces Net Billing Rules Allowing Nigerians Sell Surplus Solar Power To DisCos

Electricity Regulator Introduces Net Billing Rules Allowing Nigerians Sell Surplus Solar Power to DisCos The Nigerian Electricity Regulatory Commission NERC has commenced implementation of the Net Billing Regulations 2026, a new framework that allows electricity consumers who generate power from renewable sourcesparticularly solar to export surplus electricity to the national grid and receive financial credit from Distribution Companies The policy marks a significant step in Nigeria’s transition toward decentralized and cleaner energy systems, enabling households, businesses, and industrial users to become “prosumers consumers who also generate electricity for their own use and for sale to the grid. Under the regulations, eligible users who install renewable energy systems can consume self-generated electricity and send excess power back to the distribution network under a structured net billing arrangement.

• Promote renewable energy adoption
• Improve electricity supply reliability
• Encourage private investment in distributed generation
• Reduce greenhouse gas emissions
• Support integration of renewable systems into the national grid

The commission added that exported electricity will be measured using bidirectional metering systems, allowing accurate tracking of both energy consumed from the grid and power exported back into it.The scheme is open to electricity customers connected to a DisCo network who install renewable energy systems that meet approved technical standards.

• Minimum: 50 kilowatt-peak
• Maximum: 1.5 megawatt-peak

This positions the programme largely for commercial, industrial, institutional users, and high-capacity residential systems capable of generating surplus energy.

• Apply to their Distribution Company for technical feasibility assessment
• Obtain approval from the DisCo
• Sign a Net Billing Agreement
• Register with NERC before activation

Under the new arrangement, electricity exported to the grid will be credited based on an approved export tariff set by the regulator. These credits will then be used to offset electricity consumed from the grid, reducing monthly electricity bills. Unlike traditional net metering systems, the net billing model focuses on monetary credits rather than one-to-one energy offsets, allowing greater regulatory control and tariff flexibility. Energy analysts say the policy could significantly accelerate solar adoption in Nigeria, particularly among businesses seeking to reduce reliance on unstable grid supply and rising fuel costs. By enabling users to monetize excess electricity, the framework also improves the economic viability of solar investments, making distributed generation more attractive to investors and consumers alike. The move aligns with broader reforms in Nigeria’s power sector aimed at improving supply reliability and expanding renewable energy penetration as part of long-term energy transition goals. The introduction of net billing comes as Nigeria continues to face persistent electricity supply challenges, including grid instability, limited generation capacity, and high operational costs within the power value chain. Experts believe that allowing decentralized power producers to sell excess electricity back to DisCos could reduce pressure on the national grid while supporting gradual market liberalization.

• Reliable metering infrastructure
• Clear tariff structures
• Efficient DisCo cooperation
• Strong regulatory enforcement
• NERC has launched the Net Billing Regulations 2026 allowing solar users sell excess power to DisCos.
• Eligible systems range from 50 kWp to 1.5 MWp capacity.
• Participants must sign agreements and pass technical approval before connecting. Exported electricity will be credited using bidirectional metering systems.
• Policy aims to expand renewable energy and improve grid reliability.