The Nigerian Electricity Regulatory Commission (NERC) has introduced a new regulatory framework that allows electricity consumers to generate renewable energy and sell excess power to electricity distribution companies (DisCos)

In a public notice announcing the commencement of the Net Billing Regulations 2026 on Wednesday, the Commission said the initiative is aimed at boosting renewable energy adoption, especially solar power, while expanding private participation in electricity generation.

Under the framework, eligible electricity consumers — described as “prosumers” — will be allowed to generate electricity primarily for self-use and export surplus energy to the national distribution network under a net billing arrangement.

NERC said the policy is designed to promote renewable energy use, improve energy security and reliability, encourage distributed generation, and support efforts to reduce greenhouse gas emissions.

“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,” the Commission stated.

The scheme opens opportunities for commercial, industrial and qualified residential users to become power suppliers to DisCos, potentially easing pressure on the national grid.

According to NERC, participants must already be connected to a DisCo network and install renewable energy systems that meet approved technical standards.

The regulations set installed capacity limits between a minimum of 50 kilowatt peak (kWp) and a maximum of 1.5 megawatt peak (MWp).

Prospective participants are required to obtain approval from their distribution company, sign a net billing agreement, and register with the Commission.

Applicants must first undergo a technical feasibility assessment by their DisCo before final approval and installation of bidirectional net meters that will measure both imported and exported electricity.

NERC said electricity exported to the grid will attract credits based on an export tariff to be determined by the Commission. (Vanguard)