The Nigerian Electricity Regulatory Commission (NERC) recently announced the commencement of the Net Billing Regulations 2026, that allows electricity users using solar energy to sell surplus generation to electricity Distribution Companies they are connected to.

According to NERC, the regulations established 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.

It said 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. Facilitate efficient integration of renewable energy systems into distribution networks.”

It urged customers seeking to participate in the scheme to be connected to a Distribution Licensee’s network and install renewable energy systems that comply with applicable technical standards and regulatory requirements.

It went on to add that participants must have a Renewable Energy System (RES) with minimum installed capacity of 50-kilowatt peak (kWp) and a maximum of 1.5-Megawatt peak (MWp) and obtain approval from the relevant Distribution Licensee.

Daily Trust reports that the aim of the regulation is to enable the incorporation of alternative energy like solar to the energy mix of the country.

Already the stagnant national grid is supplied through gas and hydro generated energy and this model has made it rigid to allow new introduction of new sources.

But to cut the rigidity of the grid, there have been moves to allow supply of energy directly to electricity distribution companies through interconnected mini-grids.

This model allows for an independent energy producer to generate energy through renewable energy sources, like solar, and sell directly to the end users in a particular community.

However, this is done with the agreement of the distribution company that covers the community.

The announcement of the Net Billing Regulations has seen many believe that the opportunity is open to all users of solar electricity but NERC’s caveat that the consumers must generate a minimum of 50KWp makes it impossible for many Nigerians to use solar to be eligible for the scheme.

What it takes to generate 50KWp

Electricity generation is the most basic and standard unit used in the measurement of electricity generated or consumed.

The generation of 1,000 watts of electricity will give you one kilowatt. As such to generate 50 kilowatts, you need the ability to generate 50,000 watts.

For solar energy, solar panels are the primary producers of electricity through the Solar PV (Photovoltaic) technology.

The solar PV converts sunlight directly into electrical energy using semiconductor materials like silicon and they are produced with the capacity of generating electricity in watts.

While there are different types of panels, the most commonly used in Nigeria is 250 watts but there are 300 watts and 500 watts panels.

To use 250 watts panels in generating a 50kwp will require 200 panels. But for a 500-watt panel, a user will need 100 panels to generate the same 50KWp.

But the availability of such a number of panels does not mean it will generate the 50kwp at all hours of the day.

Since the panels require sunlight, its efficiency is determined by the hotness of the sun, thus the sun needs to be at its highest for the panels to generate the 250 watts. So, eligible consumers might use more than the 200 0r 100 panels to achieve the 50KWp.

Another thing to consider is where to mount the panels. According to Foshan Tanfon Energy Technology Co., Ltd. a solar production company, installing a solar panel on rooftop will require between 2.1 and 2.2 M while placing it on the ground will need a space of 2.5 M.

It said the difference is because “solar panels are installed at a certain angle, in order to prevent the front solar panels from blocking the rear solar panels and cause the hot spot effect.

Thus, to install 200 panels on the rooftop will need a space of 400 square meters but on the ground will be 500 square meters.

How much will it cost to have

An article by Solarlagosbase explained that it would cost between N45 million and N150 million to have 50KWp solar electricity.

It said the price is dependent on battery capacity, inverter configuration, and installation complexity.

It added that a properly designed 50kW solar system can power: large hotels and hospitality facilities, industrial machinery and equipment, cold rooms and refrigeration systems, large office complexes, shopping plazas and commercial centers, multiple air conditioners simultaneously, large residential estates and gated communities, heavy-duty commercial and industrial energy consumption. (Daily Trust)