Nigerian Electricity Regulatory Commission The Nigerian Electricity Regulatory Commission has commenced the implementation of the Net Billing Regulations 2026, creating a framework that will allow eligible electricity consumers with renewable energy systems, particularly solar installations, to generate electricity for their own use and sell surplus power to electricity distribution companies.
The development is expected to accelerate the adoption of renewable energy technologies across the country, encourage private sector investment in power generation, and provide an additional source of electricity supply to the distribution network. In a public notice titled “Commencement of the Net Billing Regulations 2026” and released on Wednesday, the commission notified electricity consumers, distribution companies, renewable energy developers, commercial and industrial customers, and the general public of the commencement of the new regulatory regime.
According to the regulator, the framework is designed to transform eligible electricity customers into what it describes as “prosumers” — consumers who not only use electricity but also generate it. The commission also specified that participating customers must have a “renewable energy system with a minimum installed capacity of 50 kilowatt peak and a maximum of 1.5 megawatt peak”.
It stated that 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 arrangement effectively creates a pathway for businesses and institutions with large solar power installations to monetise excess electricity that would otherwise remain unused.
Under the framework, a customer with a solar power system will first consume electricity generated from the installation. If the system produces more electricity than is required at any given time, the excess energy can be exported into the distribution company’s network.
The amount of electricity exported will be measured through specially installed bidirectional meters capable of recording both electricity consumed from the grid and electricity supplied to it. The exported energy will then be credited in accordance with tariffs approved by the commission.
The regulation marks a significant shift from the traditional electricity consumption model in which customers solely purchase power from the grid. Under the new arrangement, eligible customers can become small-scale power producers capable of supplying electricity back to the network.
Experts say the model could prove particularly attractive to factories, shopping malls, universities, hospitals, industrial estates, telecommunications facilities, and large commercial enterprises that already operate substantial solar power systems. Related News Tinubu approves 2026 oil block licensing round Kebbi gov backs Tinubu’s re-election, cites highway, energy projects Nigerians can now sell excess solar power back to grid – NERC For many of these organisations, solar installations often generate excess electricity during peak sunshine hours, especially on weekends or periods of reduced operational activity.
The new framework allows such surplus generation to be utilised rather than wasted. NERC said the regulations are aimed at achieving several strategic objectives within the electricity sector. According to the commission, the objectives of the Net Billing Regulations 2026 are to promote the adoption of renewable energy technologies, enhance energy security and reliability for electricity consumers, encourage private sector participation in distributed generation, support the reduction of greenhouse gas emissions, and facilitate efficient integration of renewable energy systems into distribution networks.
The regulation comes amid growing interest in alternative energy sources as businesses and households continue to seek more reliable and cost-effective power solutions. Nigeria’s electricity sector has struggled for years with inadequate generation, transmission constraints, and distribution challenges, leading many consumers to invest heavily in self-generation through diesel, petrol, and increasingly solar-powered systems.