Nigerians who generate their own electricity from solar panels can now sell excess to the national grid under a new regulatory framework that took effect today.
The Nigerian Electricity Regulatory Commission (NERC) announced the commencement of the Net Billing Regulation 2026, a landmark framework that formally recognises a new category of electricity user, the “Prusumer,”-someone who both consumes and produces power.
Under the scheme, eligible customers who install renewable energy systems, primarily solar photovoltaic setups, can use the electricity they generate for their own needs and export the excess to their distribution company’s network. In return, they will receive credits based on an export tariff approved by NERC.
The regulations are designed to broaden access to clean energy, ease pressure on the national grid, draw private investment into distributed power generation, and help Nigeria reduce its greengas emissions. NERC also says the framework will improve energy security and reliability for participating consumers.
NERC said to qualify, applicant must be connected to a licensed distribution company’s network and install a renewable energy system with a capacity of between 50kilowatt peak (kWp) and 1.5 MegaWatt peak (MWp), a range that covers large residential installations as well as commercial and industrial facilities.
The Commission also set that systems must meet applicable technical standards and receive approval from the relevant distribution licensee.
The regulator urged interested customers to begin the process by applying to their distribution company for a technical feasibility assessment. Noting that once approved, they must executive a Net Billing Agreement and register with NERC before they can begin exporting power.
According to NERC, approved participants would also be fitted with bidirectional metering equipment capable of measuring both electricity drawn from and fed into the network.
The launch of the Net Billing Regulation marks a significant shift in Nigeria’s electricity landscape, opening the door to businesses, industries, and larger households to become active participants in the country’s energy supply rather than passive consumers and be compensated.
