NERC Announces Nigerians Can Now Sell Excess Solar Power Back to Grid
- Nigeria has taken a major step towards cleaner energy with the launch of its Net Billing Regulations 2026
- The policy allows electricity consumers to generate renewable power, especially through solar systems, and sell any surplus back to the national grid
- This move is expected to boost investment in distributed generation and reduce reliance on traditional electricity sources
The Nigerian Electricity Regulatory Commission (NERC) has rolled out its Net Billing Regulations 2026, a new policy framework that allows electricity consumers to generate their own renewable energy and sell surplus power back to the national grid.
In a statement posted on its verified X handle on Wednesday, NERC explained that the regulation is designed to expand renewable energy use, improve electricity reliability, and encourage private investment in distributed power generation.
Source: Getty Images
“The Regulations establish a framework that enables eligible electricity customers (Prosumers) to generate electricity from renewable energy sources, primarily solar photovoltaic systems, for their own consumption and export surplus energy to the distribution network under a Net Billing Arrangement,” the commission said.
Who can participate in net billing
Under the framework, eligible electricity users known as prosumers can install solar photovoltaic systems for personal use and export excess energy to their distribution companies.
To qualify, customers must be connected to a distribution company’s network, install renewable energy systems that meet regulatory standards, and obtain approval from their electricity distributor.
Systems must fall within an installed capacity range of 50 kilowatt-peak (kWp) to 1.5 megawatt-peak (MWp). Participants are also required to sign a Net Billing Agreement and register with NERC after approval.
Benefits for consumers
For households, businesses, and industrial users, the regulation offers an opportunity to reduce electricity bills by consuming self-generated power and earn credits for surplus electricity supplied to the grid.
Approved users will be equipped with bidirectional metering devices that measure both electricity consumed from the grid and power exported back into it.
See the X post below:
Objectives of the regulation
The commission highlighted several goals of the Net Billing Regulations 2026. These include promoting the adoption of renewable energy technologies, enhancing energy security and reliability for electricity consumers, encouraging private sector participation in distributed generation, supporting the reduction of greenhouse gas emissions, and facilitating efficient integration of renewable energy systems into distribution networks.
The regulation is expected to accelerate rooftop solar adoption and gradually shift Nigeria toward a more decentralised electricity generation system. This development is particularly important for consumers seeking to reduce reliance on the national grid and embrace cleaner, more sustainable energy solutions.
Source: Getty Images
NERC orders registration of private substations
Legit.ng earlier reported that the Nigerian Electricity Regulatory Commission (NERC) has introduced a new directive requiring owners of privately operated transmission substations connected to Nigeria’s national grid to formally register and obtain regulatory approval.
The directive, which was published by the commission on Wednesday, March 11, was titled: Order on the Registration and Authorisation of Grid-Connected Private Transmission Substations (NERC/2026/013). According to the commission, the directive took effect on March 9, 2026. It is aimed at strengthening oversight of privately owned substations that supply electricity directly to large power consumers.
Source: Legit.ng
