The Nigerian Electricity Regulatory Commission (NERC) has announced the commencement of the Net Billing Regulations 2026, a policy framework aimed at boosting renewable energy adoption and increasing private sector participation in electricity generation across the country.
The commission said the new regulations provide a structured system that allows eligible electricity consumers, described as “prosumers”—to generate power, mainly through solar photovoltaic systems, for personal use while exporting surplus electricity to distribution networks under a net billing arrangement.
Under the scheme, participants would earn credits for electricity fed into the grid based on export tariffs approved by the commission.
NERC stated that the initiative is designed to accelerate the use of renewable energy technologies, strengthen energy security and reliability, promote distributed power generation and reduce greenhouse gas emissions.
It added that the framework would support the efficient integration of renewable energy into existing distribution infrastructure while encouraging greater private investment in the electricity sector.
To qualify, customers must already be connected to a licensed distribution company’s network and install renewable energy systems that meet specified technical and regulatory standards.
Eligible systems are required to have a minimum capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp), the commission said.
Participants are also required to secure approval from their respective distribution companies, sign a Net Billing Agreement and register with NERC before beginning operations.
Interested customers must first apply to their distribution company for a technical feasibility assessment.
NERC explained that the initiative would enable commercial and industrial users to reduce energy costs while contributing excess electricity to the grid, as more businesses increasingly adopt solar power as an alternative energy source.
In a related development, the commission reaffirmed its commitment to strict regulatory enforcement, warning that it would maintain zero tolerance for non-compliance across the Nigerian Electricity Supply Industry (NESI).
The warning was issued during a Compliance Peer Review Meeting held in Abuja and chaired by NERC Commissioner for Legal, Licensing and Compliance, Dafe Akpeneye.
The two-day meeting brought together regulatory and compliance officers from across the power sector, including representatives of generation companies, the Transmission Company of Nigeria (TCN), distribution companies, the Nigerian Independent System Operator (NISO), the Nigerian Bulk Electricity Trading Plc and other stakeholders.
NERC said discussions at the meeting focused on strengthening compliance culture, improving regulatory performance and addressing operational challenges in the electricity market.
Key issues reviewed included performance evaluations and peer comparisons among regulatory and compliance officers, the use of artificial intelligence in regulatory and operational compliance, compliance scorecards for licensees, health and safety reporting obligations, progress on metering and adherence to market rules.
