NERC to introduce net billing rules for renewable energy

The Nigerian Electricity Regulatory Commission (NERC) is starting the Net Billing Regulations 2026. This plan aims to improve energy security and increase the use of renewable energy across Nigeria.

The commission shared this information in a public notice on Wednesday. The notice was directed at electricity consumers, distribution companies, renewable energy developers, businesses, and the general public.

NERC explained that these new rules will allow certain electricity customers, known as "prosumers," to make their own electricity using renewable sources like solar panels. They can also send any extra electricity back to the distribution networks under a net billing system.

"The Nigerian Electricity Regulatory Commission (NERC) hereby notifies electricity consumers, distribution companies, renewable energy developers, commercial and industrial customers, and the general public of the commencement of the Net Billing Regulations 2026."

NERC added that this framework aims to encourage more people to use renewable energy technologies. It also seeks to make electricity supply more secure and reliable for consumers.

The regulators mentioned that this move encourages private sector involvement in generating electricity. It also supports efforts to lower greenhouse gas emissions and helps integrate renewable energy systems into the existing networks.

Eligibility requirements:

For customers to join the net billing scheme, they need to be connected to a licensed electricity distribution company's network. They also need to set up renewable energy systems that meet technical standards and regulatory requirements.

Customers must install renewable energy systems with capacities between 50 kilowatt peak (kWp) and 1.5 megawatt peak (MWp). Additionally, these customers must get approval from their distribution company, sign a Net Billing Agreement, and register with NERC.

The commission mentioned that interested customers should apply through their distribution companies for technical feasibility checks before getting approval.

"Upon approval and execution of a Net Billing Agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations."

Metering/compensation

NERC stated that approved participants will get bidirectional net meters. These meters will track the electricity they import from and export to the distribution networks.

The commission also noted that any extra electricity sent to the grid will earn credits based on the export tariffs set by the new rules.

This announcement comes as more people show interest in decentralized power generation. There is also a growing trend of using solar energy solutions among households and businesses looking for better alternatives to the unreliable grid supply.