FG to Pay Nigerians for Excess Solar Power as NERC Unveils New Electricity Trading Rules
- NERC's new Net Billing Regulations 2026 now enable consumers to sell excess solar power back to the grid
- Nigeria aims to boost electricity access and investment in renewable energy amidst ongoing power supply challenges in the country
- Consumers can become 'prosumers', generating income while improving energy security with approved renewable systems
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Nigeria is set to take a major step toward expanding electricity access and accelerating renewable energy adoption after the Nigerian Electricity Regulatory Commission (NERC) introduced new rules that will allow consumers to sell excess solar power back to the national grid.
The newly released Net Billing Regulations 2026 establish a framework that enables households, businesses and industrial users to generate electricity from renewable sources, primarily solar energy, for their own consumption while earning credits for surplus power supplied to distribution companies.
Source: Getty Images
The initiative is expected to boost electricity availability, reduce pressure on the national grid and create fresh incentives for investment in clean energy solutions.
New opportunity for electricity consumers
Under the regulations, electricity consumers who install approved renewable energy systems can become what NERC describes as “prosumers”, individuals or organisations that both consume and produce electricity.
The framework allows participants to export excess electricity generated from their solar photovoltaic (PV) systems to the grid through their respective distribution companies (DisCos).
In return, the exported electricity will be measured and credited using an export tariff that will be determined by the regulator.
The move effectively creates a formal market for surplus solar energy, allowing consumers to offset electricity costs and potentially earn additional income from their power investments.
Addressing Nigeria’s power supply crisis
The policy comes as Nigeria continues to grapple with a severe electricity deficit despite significant installed generation capacity.
Although the country has an installed power generation capacity of about 13,625 megawatts (MW), actual power generation supplied to the national grid typically ranges between 4,000 MW and 4,500 MW. This remains far below the estimated national electricity demand of roughly 20,000 MW.
Official figures from December 2025 revealed that only 5,151 MW of installed capacity was available for dispatch, representing just 38 per cent of total capacity.
Industry experts have attributed the persistent gap to several challenges, including inadequate sector financing, gas supply shortages, weak contract enforcement, ageing transmission infrastructure, poor revenue collection and recurring grid disturbances.
As a result, millions of Nigerians continue to depend on petrol and diesel generators, while power shortages are estimated to cost the economy about $29 billion annually in lost productivity and economic output.
Who can participate?
According to NERC, eligible participants must be connected to a licensed distribution company’s network and install renewable energy systems that comply with technical and safety requirements.
The approved systems must have a minimum capacity of 50 kilowatt-peak (kWp) and a maximum capacity of 1.5 megawatt-peak (MWp).
Before installation, prospective participants must apply to their distribution company for a technical feasibility assessment.
Successful applicants will then be required to sign a Net Billing Agreement and complete registration with NERC.
Approved users will also be provided with bidirectional net meters capable of measuring both electricity consumed from the grid and electricity exported back into the network.
Boost for renewable energy growth
NERC said the regulations are designed to promote renewable energy adoption, improve energy security, attract private investment and support the integration of distributed energy resources into Nigeria’s electricity market.
Source: Getty Images
Beyond creating a new income stream for consumers, the commission believes the initiative will help strengthen grid reliability, expand available electricity supply and support the country’s broader transition toward cleaner and more sustainable energy sources.
The Net Billing Regulations 2026 are expected to complement ongoing reforms aimed at improving generation, transmission and distribution across Nigeria’s power sector while bringing the country closer to a more resilient and diversified energy future.
TCN alerts five Nigerian states of power outages
Legit.ng earlier reported that millions of electricity consumers across Northern Nigeria are expected to experience a temporary blackout after the Transmission Company of Nigeria (TCN) announced the shutdown of a critical transmission line for emergency maintenance.
The planned outage affects Kano, Katsina, Jigawa, Bauchi, and Yobe states, while communities in neighbouring Niger Republic that rely on electricity supplied through Nigeria's national grid will also experience disruptions.
In a statement issued by TCN spokesperson Ndidi Mbah, the company explained that the interruption became necessary to allow engineers to carry out urgent maintenance work on the Mando-Kumbotso 330kV transmission line, one of the major power corridors serving the North-West and parts of the North-East.
Source: Legit.ng
