NERC has announced the commencement of the Net Billing Regulations 2026, a landmark initiative expected to deepen renewable energy adoption and expand private participation in electricity generation across the country.
The commission said the regulations establish a framework that enables eligible electricity customers, referred to as “prosumers,” to generate electricity primarily through solar photovoltaic systems for their own use while exporting excess energy to distribution networks under a structured net billing arrangement.
Under the scheme, participants will receive credits for electricity supplied to the grid based on export tariffs approved by the commission.
NERC noted that the initiative is designed to accelerate the deployment of renewable energy technologies, enhance energy security and reliability, promote distributed generation and reduce greenhouse gas emissions.
The commission added that the regulations would also facilitate the efficient integration of renewable energy systems into existing distribution networks while encouraging greater private sector investment in the power sector.
To qualify for participation, customers must already be connected to the network of a licensed distribution company and install renewable energy systems that meet prescribed technical and regulatory standards. Eligible installations must have a minimum capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp), NERC stated.
Participants are also required to obtain approval from the relevant distribution company, execute a Net Billing Agreement and register with NERC before commencing operations. According to the commission, interested customers must first apply to their distribution company for a technical feasibility assessment.
NERC explained that the initiative would create opportunities for commercial and industrial customers to reduce energy costs while contributing additional power to the grid, especially at a time when businesses are increasingly turning to solar energy as an alternative source of electricity.
In a related development, NERC reiterated its commitment to strict regulatory enforcement and warned licensees across the Nigerian Electricity Supply Industry (NESI) that it would maintain zero tolerance for non-compliance with industry regulations.
The commission made the declaration during its Compliance Peer Review Meeting, which commenced in Abuja and was chaired by NERC Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.
The two-day meeting brought together regulatory and compliance officers from across the electricity value chain, including generation companies, TCN, distribution companies, the Nigerian Independent System Operator (NISO), the Nigerian Bulk Electricity Trading Plc and other industry stakeholders.
According to NERC, discussions at the meeting were focused on strengthening compliance culture, improving regulatory performance and addressing operational challenges within the sector.
Among the key issues under review were performance assessments and peer comparisons among regulatory and compliance officers, the deployment of artificial intelligence in regulatory and operational compliance processes, compliance scorecards of licensees, health and safety reporting obligations, progress on metering and adherence to market obligations.
