•As NERC rolls out net billing regulations, targets consumers from 50kWp solar installations

The Nigerian Electricity Regulatory Commission (NERC) has commenced the implementation of Net Billing Regulations 2026, which creates a framework allowing eligible electricity customers to generate electricity from renewable energy sources and export surplus power to distribution networks.

The new agreement is expected to be implemented by state power regulatory commissions under the Electricity Act, which seeks to decentralise control and management of the public power system.

NERC, in a notice to electricity consumers, distribution companies, renewable energy developers, commercial and industrial customers, and the general public, said the regulations establish a framework for eligible electricity customers, referred to as “prosumers”, to generate electricity primarily from solar photovoltaic systems for their own consumption and export excess energy under a net billing arrangement.

According to NERC, the regulations are aimed at promoting the adoption of renewable energy technologies, enhancing energy security and reliability for electricity consumers, encouraging private sector participation in distributed generation, supporting the reduction of greenhouse gas emissions and facilitating the efficient integration of renewable energy systems into distribution networks.

The commencement notice takes immediate effect and provides the operational framework for customers seeking to generate renewable energy for self-consumption while exporting excess electricity to the distribution network.

The commission said participation in the scheme would be open to customers connected to a distribution licensee’s network and operating renewable energy systems that comply with applicable technical standards and regulatory requirements.

Under the regulations, eligible renewable energy systems (RES) must have a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum installed capacity of 1.5 megawatt peak (MWp).

The capacity threshold places the scheme within the commercial and industrial customer segment, as well as other electricity users capable of deploying renewable energy installations within the approved range.

NERC said prospective participants must obtain approval from the relevant distribution licensee before joining the programme.

In addition, customers are required to execute a net billing agreement and register with the commission in accordance with the provisions of the regulations.

The regulator directed interested customers to apply to their distribution licensee for a technical feasibility assessment.

It explained that approval under the scheme would be subject to the outcome of the assessment and the execution of a net billing agreement.

“Interested customers are required to apply to their Distribution Licensee for a technical feasibility assessment. Upon approval and execution of a net billing agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations,” the commission stated.

NERC also disclosed that approved participants would be provided with appropriate bidirectional net metering facilities to measure electricity imported from and exported to the distribution network.

According to the commission, the metering arrangement will serve as the basis for determining energy supplied to and received from the network under the net billing framework.

The commission added that electricity exported by participants would be credited in line with an export tariff approved by the commission.

“Approved participants shall be provided with appropriate bidirectional net metering facilities to measure electricity imported from and exported to the distribution network.

Exported energy shall be credited in accordance with the export tariff approved by the commission,” NERC stated.