The Nigerian Electricity Regulatory Commission (NERC) has announced the commencement of the Net Billing Regulations 2026, introducing a framework that allows eligible electricity consumers to generate renewable energy for their own use and export excess power to the distribution network.

In a public notice issued on Wednesday, the Commission said the regulations are designed to support the adoption of renewable energy technologies, particularly solar photovoltaic systems, while enhancing energy security and reliability for consumers across the country.

Under the new framework, eligible customers, referred to as “prosumers,” will be able to generate electricity from renewable energy sources for self-consumption and sell surplus energy to electricity distribution companies through a net billing arrangement.

According to NERC, the regulations aim to promote the deployment of renewable energy technologies, encourage private sector participation in distributed electricity generation, support efforts to reduce greenhouse gas emissions, and facilitate the efficient integration of renewable energy systems into distribution networks.

To qualify for participation in the scheme, customers must be connected to a distribution company’s network and install renewable energy systems that comply with applicable technical and regulatory standards. 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 company, execute a Net Billing Agreement, and register with NERC in line with the provisions of the regulations.

The Commission stated that interested customers must first apply to their distribution company for a technical feasibility assessment. Following approval and the execution of a Net Billing Agreement, applicants will be required to complete registration with the regulator.

NERC added that approved participants will be provided with bidirectional net metering facilities capable of measuring electricity imported from and exported to the distribution network. Energy exported to the grid will be credited based on an export tariff approved by the Commission.

The introduction of the Net Billing Regulations is expected to boost investment in distributed renewable energy projects, particularly solar power installations for commercial and industrial consumers, while supporting Nigeria’s broader energy transition and electricity access objectives.