In a major boost for renewable energy adoption in Nigeria, the Nigerian Electricity Regulatory Commission (NERC) has introduced a new policy that allows electricity consumers to generate their own power and sell excess energy back to the national grid.
The new policy, known as the Net Billing Regulations 2026, is designed to encourage the use of renewable energy, particularly solar power, while giving consumers an opportunity to reduce electricity costs and earn credits from surplus energy generated.
Under the framework, eligible electricity customers can install solar photovoltaic systems for personal use and supply any unused electricity back to their distribution companies through a regulated net billing arrangement.
According to NERC, the initiative is expected to improve energy reliability, promote clean energy adoption, attract private sector investment and support efforts to reduce greenhouse gas emissions across the country.
The commission explained that participants, referred to as “prosumers”, will not only consume electricity but also generate and contribute power to the distribution network.
For many Nigerians struggling with unstable power supply and rising electricity costs, the policy could provide a new opportunity to maximize investments in solar energy while earning benefits from excess power generation.
To qualify for the scheme, consumers must be connected to a registered distribution company’s network, install approved renewable energy systems and obtain necessary approvals from their electricity provider.
NERC stated that eligible systems must have a capacity ranging from 50 kilowatt-peak (kWp) to 1.5 megawatt-peak (MWp).
Applicants will also be required to undergo technical assessments conducted by their distribution companies before approval is granted.
Once approved, participants will be provided with special bidirectional meters capable of measuring both electricity consumed from the national grid and electricity supplied back into the network.
The commission added that customers will receive credits based on approved export tariffs for every unit of excess electricity supplied to the grid.
Industry observers believe the initiative could significantly accelerate solar energy adoption across Nigeria, especially among businesses, industries and households seeking alternatives to unreliable power supply.
The policy is also expected to contribute to the gradual decentralisation of electricity generation in Nigeria by allowing more consumers to become active participants in power production.
As energy costs continue to rise, many Nigerians may now view solar installations not only as a solution to power challenges but also as a potential source of savings and additional value.
Source: Nigerian Electricity Regulatory Commission (NERC)
