New regulation enables households and businesses to generate renewable energy, cut electricity costs and earn credits for surplus power.
The Nigerian Electricity Regulatory Commission (NERC) has introduced its Net Billing Regulations 2026, a new framework that allows electricity consumers to generate power from renewable energy sources and sell excess electricity back to the national grid.
Announcing the policy on Wednesday, the commission said the initiative is designed to boost renewable energy adoption, improve energy reliability and encourage private sector investment in distributed power generation. Under the scheme, eligible customers, known as “prosumers,” can install solar photovoltaic systems for personal use and export surplus electricity to distribution companies under an approved net billing arrangement.
According to NERC, the policy will enable households, businesses and industrial users to reduce their electricity bills through self-generation while earning credits for excess power supplied to the grid. To participate, customers must be connected to a distribution company’s network, install approved renewable energy systems with capacities ranging from 50kWp to 1.5MWp, obtain technical approval and sign a Net Billing Agreement.
The commission said participants will be provided with bidirectional meters to track electricity consumed and exported, with compensation based on approved export tariffs. The regulation is expected to accelerate solar energy adoption across Nigeria and support the country’s transition toward a more decentralized and sustainable electricity system.