The Nigerian Electricity Regulatory Commission (NERC) has officially launched the Net Billing Regulations 2026, enabling eligible electricity consumers to sell excess solar power back to the national grid. This policy, announced by Gloria Adesanya on June 4, 2026, targets commercial, industrial, and institutional solar installations with capacities between 50 kilowatt-peak (kWp) and 1.5 megawatt-peak (MWp). Approved participants, now termed "prosumers," will receive bidirectional meters that track both energy imported from and exported to the grid. Surplus electricity earns financial credits that automatically offset future utility bills.
Who Can Participate in the Net Billing Scheme?
The program is designed for large-scale solar users, not small residential systems. To qualify, applicants must have a solar energy system within the 50 kWp to 1.5 MWp capacity range, be connected to an active distribution network operated by a licensed DisCo, and meet all technical, safety, and environmental requirements set by NERC. This initiative aims to boost electricity supply by encouraging private investment in renewable energy, addressing Nigeria's power deficit where installed capacity exceeds 13,000 MW but actual supply averages only 4,000-4,500 MW against an estimated demand of 20,000 MW.
How the Net Billing Process Works
Interested customers must first apply through their local DisCo, which conducts a technical assessment to confirm feasibility. Once approved, the customer signs a Net Billing Agreement with the DisCo and registers with NERC. Participants then receive a special bidirectional meter that records both electricity consumed from the grid and excess electricity supplied back. This meter is crucial for accurate billing and credit calculation.
Earning and Using Credits
Rather than receiving cash payments, participants earn energy credits for exported electricity. At the end of each billing cycle, these credits are deducted from the cost of electricity consumed from the grid. If exported electricity exceeds consumption, the remaining credit is carried forward to offset future bills. Additionally, approved participants can retain any carbon credits generated from their renewable energy projects, providing extra environmental and financial benefits.
Benefits and Impact
The Net Billing Regulations 2026 are part of broader efforts to improve Nigeria's electricity supply by leveraging renewable energy. By allowing prosumers to sell excess power, the policy reduces waste, encourages solar adoption, and helps bridge the gap between generation and demand. The scheme also aligns with global trends toward decentralized energy systems and carbon trading.
For more details, applicants should contact their DisCo or visit NERC's official website. The commission emphasizes that all installations must comply with technical standards to ensure grid stability and safety.
