ABUJA — The Nigerian Electricity Regulatory Commission (NERC) has officially commenced the implementation of its Net Billing Regulations 2026, a landmark policy that empowers electricity consumers to become "prosumers" (producers and consumers). This framework officially allows individuals and businesses to generate their own renewable energy and sell surplus electricity back to the national grid for financial credits.
How the Net Billing Scheme Works
Under this new policy, consumers who invest in renewable energy specifically solar photovoltaic (PV) systems can use the power for their own needs while exporting any excess energy to their local Distribution Companies (DisCos).
Key features include:
Bidirectional Metering: Approved participants will be equipped with specialized meters that accurately measure both the electricity imported from the grid and the excess power exported back to it.
Financial Credits: Excess energy supplied to the grid will be credited to the customer's account based on an export tariff approved by NERC, effectively reducing their overall electricity bills.
Decentralized Generation: The policy is a strategic shift toward decentralizing power generation, aiming to improve reliability and reduce dependence on a single source of electricity.
Eligibility and Participation Requirements
The program is open to customers connected to a DisCo’s network who meet specific technical and regulatory standards. To participate, applicants must adhere to the following framework:
Capacity Limits: Participating solar systems must have an installed capacity ranging between 50 kilowatt-peak (kWp) and 1.5 megawatt-peak (MWp).
Technical Assessment: Applicants must first undergo a technical feasibility assessment conducted by their respective Distribution Company.
Agreement and Registration: Successful applicants must sign a Net Billing Agreement with their DisCo and officially register with NERC.
Compliance: All renewable energy installations must meet the technical standards stipulated by the Commission to ensure network stability and safety.
Objectives of the Regulation
The NERC has outlined several core objectives for the Net Billing Regulations 2026:
Promoting Renewable Energy: Accelerating the adoption of clean energy technologies across Nigeria.
Enhancing Reliability: Improving energy security for consumers by diversifying supply sources.
Private Investment: Encouraging private sector participation in distributed power generation.
Environmental Impact: Supporting the reduction of greenhouse gas emissions in line with global climate commitments.
This policy is expected to significantly incentivize households, businesses, and industrial users to transition to solar energy, fostering a more sustainable and resilient energy sector for the country.
