June 4 (THEWILL) — The Nigerian Electricity Regulatory Commission (NERC) has commenced implementation of its Net Billing Regulations 2026, a landmark policy allowing eligible electricity consumers to generate renewable energy for their own use and sell excess power to electricity distribution companies (DisCos), in a major move to decentralise electricity generation in Nigeria.
The commission, in a public notice on its official X platform, said the new regulations establish a framework for electricity “prosumers” – customers who both consume and produce electricity — to export surplus electricity generated primarily from solar photovoltaic systems into distribution networks under a net billing arrangement.
The development is expected to stimulate investment in renewable energy projects, reduce pressure on the national electricity grid and provide large-scale electricity consumers with an additional source of revenue from excess power generation.
NERC said the regulations were designed to accelerate the adoption of renewable energy technologies, improve energy security and reliability, attract private-sector participation in distributed generation, reduce greenhouse gas emissions and facilitate the seamless integration of renewable energy systems into electricity distribution networks.
According to the commission, the initiative forms part of broader efforts to create a more sustainable electricity market while supporting Nigeria’s transition towards cleaner energy sources.
Under the new framework, only customers connected to a distribution company’s network and operating renewable energy systems that satisfy prescribed technical and regulatory requirements will qualify to participate in the scheme.
The regulations apply to renewable energy installations with a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum installed capacity of 1.5 megawatt peak (MWp), indicating that the programme is largely targeted at commercial and industrial electricity consumers as well as other large-scale users.
Prospective participants are expected to obtain approval from their respective distribution companies before joining the scheme. They will also be required to execute a Net Billing Agreement and complete registration processes with NERC before commencing operations.
The commission explained that interested customers must first apply to their distribution companies for technical feasibility assessments. Following approval and execution of the necessary agreements, applicants are expected to register with the regulator in line with provisions contained in the regulations.
To support implementation of the initiative, approved participants will be provided with bidirectional net meters capable of measuring electricity imported from the grid, as well as electricity exported back into the network.
NERC further stated that electricity supplied to the grid by participating customers would attract energy credits based on tariffs approved by the commission.
The introduction of net billing is considered one of the most significant regulatory reforms in Nigeria’s electricity sector in recent years and is expected to expand renewable energy deployment while encouraging self-generation among commercial and industrial users.
The development comes as Nigeria intensifies efforts to diversify its energy mix and improve electricity access through cleaner and more sustainable energy solutions amid rising demand for a reliable power supply.
Stakeholders say the successful implementation of the framework could significantly reshape electricity generation and consumption patterns by reducing dependence on centralised generation and encouraging broader participation in distributed energy systems.
NERC advised stakeholders and interested participants seeking additional information on the programme to consult the Net Billing Regulations 2026 available on its official website.
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