The Nigerian Electricity Regulatory Commission (NERC) has announced the commencement of the Net Billing Regulations 2026, a landmark framework designed to encourage the adoption of renewable energy technologies and enable electricity consumers to generate and export surplus power to distribution networks.
In a public notice issued on June 3, 2026, the Commission said the regulations establish a framework that allows eligible electricity consumers, known as “prosumers,” to generate electricity from renewable energy sources—primarily solar photovoltaic systems—for their own use while supplying excess electricity to the grid under a net billing arrangement.
The initiative is aimed at promoting distributed renewable energy generation, improving energy security, enhancing reliability of electricity supply, and encouraging greater private sector participation in Nigeria’s power sector. It also seeks to support national efforts to reduce greenhouse gas emissions and facilitate the seamless integration of renewable energy systems into distribution networks.
Under the new regulations, consumers with renewable energy installations will be able to offset part of their electricity costs by receiving credits for excess electricity exported to the grid. The policy aligns with global trends that encourage consumers to become active participants in electricity generation and distribution.
NERC stated that customers interested in participating in the scheme must be connected to the network of a licensed electricity distribution company and install renewable energy systems that comply with applicable technical and regulatory standards.
The Commission further specified 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). Participants are also required to obtain approval from the relevant distribution licensee, execute a Net Billing Agreement, and register with the Commission.
Industry observers believe the regulations could unlock new investment opportunities in Nigeria’s renewable energy sector by creating incentives for commercial and industrial consumers to invest in solar power generation. The framework is also expected to reduce dependence on diesel-powered generators and contribute to the country’s energy transition agenda.
The introduction of net billing comes amid growing interest in renewable energy solutions across Nigeria, driven by rising electricity costs, grid reliability challenges, and increasing demand for cleaner energy sources. NERC has in recent months received commendation from renewable energy stakeholders for advancing initiatives aimed at expanding access to sustainable electricity and supporting distributed generation.
With the commencement of the Net Billing Regulations 2026, stakeholders expect increased deployment of solar energy systems by businesses, institutions, and large consumers, potentially creating a new market segment for renewable energy developers while strengthening the resilience of Nigeria’s electricity network.
