Electricity consumers with solar power systems can now sell excess electricity generated from their installations to Distribution Companies (DisCos) across Nigeria under a new regulatory framework introduced by the Nigerian Electricity Regulatory Commission (NERC).
The development follows the commencement of the Net Billing Regulations 2026, a policy designed to encourage renewable energy adoption and increase electricity supply to the national grid.
Under the new arrangement, eligible consumers who generate electricity through renewable energy systems, particularly solar installations, can use the power they produce and feed surplus energy into the distribution network. In return, they will receive compensation for the electricity supplied to the grid.
NERC announced the initiative through a public notice titled “Commencement of the Net Billing Regulations 2026.”
According to the commission, the framework aims to transform qualifying customers into “prosumers.” These are electricity users who not only consume power but also generate and supply it to the electricity network.
The regulation applies to customers with renewable energy systems that have a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp).
The commission explained that the scheme would enable consumers to maximize the value of their renewable energy investments while contributing to the stability of the electricity supply system.
Industry stakeholders believe the initiative could boost investments in solar energy and reduce pressure on Nigeria’s electricity infrastructure. It is also expected to encourage businesses and large energy users to adopt renewable energy solutions.
The Net Billing Regulations 2026 form part of broader efforts by NERC to promote cleaner energy sources, improve electricity access and support the transition to a more sustainable power sector.
With the new framework now in effect, eligible solar energy users have an opportunity to generate additional income while helping to strengthen electricity supply across the country.
