The Nigerian Electricity Regulatory Commission (NERC) has announced the commencement of the Net Billing Regulation 2026, a major policy initiative that allows eligible electricity consumers to generate renewable energy for their own use and sell excess power back to the grid.
The new framework formally introduces a category of electricity users known as “prosumers”—customers who both consume and produce electricity. Under the scheme, participants who install renewable energy systems, particularly solar photovoltaic (PV) facilities, can export surplus electricity to their distribution company (DisCo) and receive credits based on a NERC-approved export tariff.
NERC said the regulation is designed to expand access to clean energy, reduce pressure on the national grid, attract private investment in distributed generation, and support Nigeria’s efforts to cut greenhouse gas emissions. The commission added that the initiative would enhance energy security and improve the reliability of power supply for participating customers.
According to the regulator, eligible participants must be connected to the network of a licensed distribution company and install renewable energy systems with capacities ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp). The capacity range covers large residential users as well as commercial and industrial consumers.
The commission stated that all installations must comply with applicable technical standards and obtain approval from the relevant distribution licensee before they can participate in the programme.
NERC advised interested customers to begin the process by applying to their distribution company for a technical feasibility assessment. Once approval is granted, applicants are required to execute a Net Billing Agreement with the DisCo and register with the commission before exporting electricity to the network.
The regulator further disclosed that approved participants would be equipped with bidirectional meters capable of accurately measuring electricity imported from the grid and electricity exported to it.
Industry observers have described the regulation as a significant milestone in the evolution of Nigeria’s electricity sector. By enabling businesses, industries and larger households to generate and sell power, the policy is expected to encourage investment in renewable energy while creating a more decentralised and resilient electricity system.
The launch of the Net Billing Regulation represents a notable shift in Nigeria’s power landscape, transforming qualified consumers from passive users of electricity into active contributors to the nation’s energy supply chain, with the added benefit of earning compensation for excess power generated.
