NERC Introduces Net Billing Regulations to Let Consumers Sell Surplus Solar Power

The Nigerian Electricity Regulatory Commission (NERC) has introduced the Net Billing Regulations 2026, allowing electricity customers to generate renewable power for self‑consumption and sell surplus back to the grid.

Under the new rules, NERC said eligible consumers — referred to as prosumers — may install renewable energy systems, primarily solar photovoltaic (PV) arrays, and export excess generation to distribution networks under a Net Billing Arrangement.

In a public notice on its social media platforms, NERC said the regulations aim to promote renewable-energy adoption, strengthen energy security and reliability, encourage private-sector participation in distributed generation, reduce greenhouse gas emissions and improve integration of renewables into distribution networks.

To participate, customers must be connected to a Distribution Licensee’s network and obtain that licensee’s approval. Renewable Energy Systems must meet applicable technical standards and have a minimum capacity of 50 kilowatt‑peak (kWp) and a maximum of 1.5 megawatt‑peak (MWp).

Applicants must execute a Net Billing Agreement and register with NERC after a successful technical feasibility assessment by the Distribution Licensee.

Approved participants will receive bidirectional net metering facilities to record electricity imported from and exported to the grid. Energy exported under the scheme will be credited at an export tariff set by the Commission.

NERC said the framework will support private investment in distributed solar generation while providing a regulatory pathway for consumers to monetise surplus clean energy.