The Nigerian Electricity Regulatory Commission (NERC) has commenced implementation of the Net Billing Regulations 2026, opening the electricity market to qualified consumers who generate renewable energy and supply excess power to the national distribution network.
The new framework is expected to accelerate solar energy adoption, deepen private sector participation in power generation, and provide businesses and large consumers with additional opportunities to reduce energy costs while earning credits for surplus electricity exported to the grid.
Announcing the commencement of the regulations, NERC said the framework establishes a formal mechanism that allows eligible electricity customers, known as “Prosumers,” to generate electricity from renewable energy sources, primarily solar photovoltaic systems, for their own use and export excess energy to distribution companies under a Net Billing Arrangement.
According to a statement issued by the commission, the regulations are designed to promote cleaner energy sources and strengthen Nigeria’s electricity supply system.
“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,” NERC stated.
The commission explained that the scheme seeks to stimulate investments in distributed generation and improve power reliability for consumers.
Among the objectives of the regulations are to “promote the adoption of renewable energy technologies, enhance energy security and reliability for electricity consumers, encourage private sector participation in distributed generation, support the reduction of greenhouse gas emissions, and facilitate efficient integration of renewable energy systems into distribution networks.”
Under the framework, only customers connected to a distribution company’s network and operating approved renewable energy systems will be eligible to participate.
NERC stated that participating customers must install renewable energy systems that comply with technical and regulatory standards, obtain approval from the relevant Distribution Licensee, execute a Net Billing Agreement, and register with the Commission.
The regulations specify that eligible Renewable Energy Systems must have a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp).
“Customers seeking to participate in the Net Billing Scheme must be connected to a Distribution Licensee’s network, install renewable energy systems that comply with applicable technical standards and regulatory requirements, obtain approval from the relevant Distribution Licensee, execute a Net Billing Agreement and register with the Commission,” NERC said.
The commission further explained that prospective participants would first undergo a technical feasibility assessment by their respective distribution companies before being admitted into the programme.
“Interested customers are required to apply to their Distribution Licensee for a technical feasibility assessment. Upon approval and execution of a Net Billing Agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations,” it stated.
To ensure accurate accounting of energy flows, NERC said approved participants would be equipped with bidirectional net meters capable of measuring electricity imported from and exported to the distribution network.
“Approved participants shall be provided with appropriate bidirectional net metering facilities to measure electricity imported from and exported to the distribution network. Exported energy shall be credited in accordance with the export tariff approved by the Commission,” NERC added.