The Nigerian Electricity Regulatory Commission (NERC) is set to start the Net Billing Regulations 2026. This move aims to boost energy security and grow renewable energy across the country.
The commission shared its plan in a public notice on Wednesday. This notice was directed at electricity users, distribution companies, renewable energy developers, industrial and commercial customers, and the general public.
NERC explained that these regulations will create a framework for eligible electricity customers, called "prosumers." These prosumers can generate their own electricity mainly from renewable energy sources like solar photovoltaic systems. 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 noted that this new framework aims to encourage the use of renewable energy technologies. It also aims to improve energy security and reliability for electricity users.
The regulators added that this initiative would help get more private companies involved in generating electricity. It supports efforts to lower greenhouse gas emissions and helps integrate renewable energy systems into distribution networks efficiently.
To take part in the net billing scheme, customers must connect to a network of a licensed electricity distribution company. They also need to set up renewable energy systems that meet technical standards and regulatory rules.
These renewable energy systems must have capacities ranging from a minimum of 50 kilowatt peak (kWp) to a maximum of 1.5 megawatt peak (MWp). Furthermore, customers must get approval from the relevant distribution company. They also need to sign a Net Billing Agreement and register with NERC.
The commission said 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."
NERC mentioned that approved participants will receive bidirectional net meters. These meters will track the electricity imported from and exported to the distribution networks.
The commission added that any surplus electricity sent back to the grid will earn credits based on export tariffs set by the regulations.
This move comes at a time when more people are looking into decentralized power generation. There is also a growing interest in solar energy solutions among homes and businesses searching for reliable alternatives to the unstable grid supply.
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