The Nigerian Electricity Regulatory Commission, NERC, has announced the commencement of the Net Billing Regulations 2026, a framework designed to allow electricity consumers who generate renewable energy to supply excess power to the national grid and receive compensation.
Under the new regulations, eligible electricity customers, known as “prosumers,” will be able to generate electricity mainly through solar photovoltaic systems for personal use while exporting surplus energy to the distribution network.
The initiative is expected to encourage the adoption of renewable energy, strengthen energy security, and increase private sector participation in electricity generation.
The framework, developed under the provisions of the Electricity Act 2023, outlines procedures for the registration, interconnection, metering, billing, and settlement processes between prosumers and electricity distribution companies.
According to NERC, customers with approved renewable energy installations will receive energy credits for excess electricity supplied to the grid, with the credits used to offset future electricity bills.
Unlike traditional net metering systems, the Nigerian model adopts a credit-based net billing arrangement, with compensation determined through a NERC-approved tariff structure.
Industry stakeholders have described the initiative as a significant step toward expanding distributed renewable energy generation, particularly solar power, while supporting Nigeria’s energy transition objectives.
The regulations are also expected to improve the commercial viability of behind-the-meter renewable energy projects and provide additional incentives for investment in clean energy solutions.
NERC said the regulations will apply to eligible customers seeking to participate in the programme and urged distribution companies, renewable energy developers, commercial and industrial consumers, and the general public to familiarise themselves with the provisions of the framework.
The Commission added that the implementation of the Net Billing Regulations 2026 is expected to accelerate renewable energy deployment across the country and support ongoing efforts to improve electricity access and sustainability within Nigeria’s power sector.
(Editor: Ada Ononye)
