Electricity: NERC commences net billing scheme, consumers to sell excess solar power to grid

The Nigerian Electricity Regulatory Commission, NERC, has announced the commencement of the Net Billing Regulations 2026.

The framework allows eligible electricity consumers to generate renewable energy for personal use and sell excess power to the national grid.

The commission disclosed this in a statement posted on its official X account on Wednesday.

According to NERC, “the new regulations are designed to promote the adoption of renewable energy technologies, improve energy security and reliability, encourage private sector participation in power generation, reduce greenhouse gas emissions, and support the integration of renewable energy systems into distribution networks.”

Under the scheme, eligible customers, known as “Prosumers,” can generate electricity from renewable energy sources, particularly solar photovoltaic systems, for their own consumption and export surplus energy to their distribution companies under a net billing arrangement.

To qualify, NERC said participants must be connected to a distribution company’s network, install renewable energy systems that meet technical and regulatory standards, obtain approval from the relevant distribution licensee, execute a Net Billing Agreement, and register with NERC.

The commission stated that “renewable energy systems eligible for the programme must have a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp)”.

NERC said interested customers are required to apply to their distribution companies for a technical feasibility assessment.

Successful applicants will proceed to execute a Net Billing Agreement before registering with the commission.