NERC Rolls Out Net Billing Regulations 2026 For Solar Power Exports

The Nigerian Electricity Regulatory Commission has commenced its Net Billing Regulations 2026 creating a framework that permits electricity consumers to generate power from renewable sources mainly solar photovoltaic systems and export surplus energy to the national grid under a structured billing arrangement.

In a statement on its verified social media handle the commission said the policy seeks to expand renewable energy adoption improve supply reliability and attract private investment in distributed generation. Eligible users known as prosumers can install systems for self consumption and receive credits for excess power fed into distribution networks.

The regulations set clear objectives including promotion of renewable technologies enhancement of energy security for consumers encouragement of private sector involvement in small scale generation support for lower greenhouse gas emissions and smoother integration of renewables into existing networks.

For households businesses and industries the change offers a route to cut grid purchases through self generated power while earning credits on exported energy. Participation requires connection to a distribution company network installation of compliant systems technical approval from the distributor signing of a net billing agreement and registration with the commission.

Systems must range between 50 kilowatt peak and 1.5 megawatt peak in capacity. Approved participants receive bidirectional meters that track both consumption from the grid and exports back to it. Exported energy attracts credits based on the commission approved export tariff.

Applicants undergo technical feasibility checks by their distribution companies before final clearance. The commission stressed that the rules apply only to renewable sources primarily solar and aim to decentralise generation without disrupting overall network stability.

Official records show Nigeria maintains an installed generation capacity of 13 625 megawatts yet average available output stands around 4 384 megawatts due to operational constraints. Peak demand estimates exceed 20 000 megawatts in many periods leaving persistent shortfalls that drive reliance on alternative sources. Renewable capacity has grown steadily with projections pointing to expansion from roughly 3.13 gigawatts in 2024 toward 5 gigawatts by 2029 at an annual rate near 10 percent.

This framework aligns with broader efforts under the Electricity Act 2023 to diversify the energy mix and reduce dependence on centralised supply. By enabling consumers to offset bills and contribute excess output the regulations are positioned to accelerate rooftop and commercial solar uptake while supporting national goals for cleaner energy and improved access.