Consumers can sell excess solar power to Discos – FG

Nigeria's electricity sector is undergoing a significant transformation with the commencement of the Net Billing Regulations 2026. The Nigerian Electricity Regulatory Commission (NERC) has established a framework that empowers eligible electricity consumers, particularly those with solar installations, to not only generate power for their own use but also to sell any surplus back to electricity distribution companies.

This new regulatory regime is poised to accelerate the adoption of renewable energy technologies across the nation. It is also expected to stimulate private sector investment in power generation and provide a valuable additional source of electricity for the national distribution network. The NERC has officially notified all stakeholders, including consumers, distribution companies, and renewable energy developers, about the launch of this new system.

The regulations introduce the concept of 'prosumers' – consumers who actively participate in electricity generation. To qualify, customers must operate a renewable energy system with a minimum installed capacity of 50 kilowatt peak (kWp) and a maximum of 1.5 megawatt peak (MWp). Under the net billing arrangement, a prosumer will first utilize the electricity generated by their system. Any excess energy produced beyond their immediate needs will be exported to the distribution network, with the amount measured by bidirectional meters.

The exported energy will be credited to the prosumer's account based on tariffs approved by the commission. This marks a departure from the traditional model where consumers solely purchase power from the grid. Experts believe this model will be particularly beneficial for entities like factories, shopping malls, universities, and industrial estates that already have substantial solar power systems, offering them a way to monetize their unused electricity.