The Nigerian Electricity Regulatory Commission (NERC) has unveiled a new electricity sales framework known as the Net Billing Regulations 2026, which allows eligible electricity consumers to generate power for their own use and sell excess electricity back to the national grid through their electricity distribution companies (DisCos).
The regulation is designed to promote the adoption of renewable energy, particularly solar power, while improving electricity supply reliability and supporting long-term energy sustainability across the country.
Under the new arrangement, consumers whose renewable energy systems generate more electricity than they consume will be allowed to export the surplus to their respective DisCos and receive credits through a regulated billing system. The initiative effectively creates a new category of electricity users known as “prosumers,” meaning individuals or organisations that both produce and consume electricity.
However, NERC clarified that the scheme is not intended for small-scale residential solar users. To qualify, participants must already be connected to a DisCo network and operate a renewable energy system with a minimum installed capacity of 50 kilowatt-peak (kWp) and a maximum of 1.5 megawatt-peak (MWp).
Eligible participants are also required to obtain approval from their DisCos, sign a Net Billing Agreement, and register with NERC before being allowed to take part in the programme.
The commission explained that approved participants will be equipped with bidirectional meters capable of measuring both electricity drawn from the grid and excess power exported back into the distribution network.
Industry stakeholders have described the initiative as a major step toward decentralised energy generation, increased investment in renewable energy, and reduced pressure on the national grid.
The Net Billing Regulations 2026 are expected to give consumers greater flexibility in managing energy use while creating opportunities for businesses and institutions with large-scale renewable energy systems to contribute directly to electricity supply.