Nigerians with qualifying solar power systems can now sell excess electricity to distribution companies (DisCos) under the newly implemented Nigerian Electricity Regulatory Commission (NERC) net billing regulations 2026.
The NERC announced the rollout of the framework on Wednesday, describing it as a major step towards expanding renewable energy adoption and improving electricity access across the country.
Under the new arrangement, eligible electricity consumers, known as prosumers, can generate power primarily through solar photovoltaic systems for their own use and export any surplus energy to the distribution network.
According to NERC, the regulations are designed to encourage the uptake of renewable energy technologies, strengthen energy security, and increase private sector participation in electricity generation.
“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,” the commission said.
NERC added that the framework will also support efforts to reduce greenhouse gas emissions and improve the integration of renewable energy into electricity distribution networks.
Who Qualifies?
To participate, applicants must:
- Be connected to a DisCo network.
- Install renewable energy systems that meet approved technical and regulatory standards.
- Obtain approval from the relevant DisCo.
- Sign a net billing agreement.
- Register with NERC.
The commission said eligible renewable energy installations must have a minimum capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp).
Interested customers are required to apply to their DisCo for a technical feasibility assessment before receiving approval.
“Upon approval and execution of a Net Billing Agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations,” the commission stated.
How the Scheme Works
Approved participants will receive bidirectional net meters, which will measure both the electricity consumed from the grid and the excess power exported back to the distribution network.
NERC said exported electricity will earn credits based on an export tariff approved by the commission, creating a financial incentive for consumers investing in solar energy systems.
The initiative is expected to boost distributed renewable energy generation while helping consumers reduce electricity costs and improve power reliability.
