Infrastructure Gap Casts Gloom over New Solar-to-Grid Policy

Nigeria's electricity sector has taken a step towards integrating renewable energy with the introduction of the Net Billing Regulations 2026 by the Nigerian Electricity Regulatory Commission (NERC). This new policy allows households, offices, and factories with solar systems to legally sell their excess electricity back to the national grid and receive payment.

The policy creates a new category of electricity user: the "prosumer." Individuals and businesses with solar systems ranging from 50 kilowatt-peak to 1.5 megawatt-peak can now export surplus power to distribution companies (Discos). They will be compensated through an "Avoided Cost Delivered" credit, with off-peak exports earning 0.55 times the rate and peak exports between 6-9 pm with batteries earning 0.75 times the rate.

While the policy is hailed as a "fantastic move" by experts like Ola Ogunsemowo, CEO of Kartel Energy Limited, a major challenge remains: the infrastructure gap. Approximately 90 percent of inverters currently in use in Nigeria are not compatible with feeding power back into the grid. This technical limitation significantly hinders the policy's effectiveness.

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It’s a very good move. It’s a fantastic move. It’s good for the industry, it’s good for the country

Furthermore, the reliability of the national grid itself is a concern. The grid experienced three collapses in January 2026 alone, raising doubts about its capacity to handle additional power from solar sources. This reality contrasts sharply with the ambition of exporting power, as over 200 million Nigerians still grapple with limited electricity supply.

Experts suggest that while blackouts have driven Nigeria's solar boom, the success of the prosumer policy will determine whether this leads to a true distributed energy future or simply more underutilized solar installations. The policy aims to promote renewable adoption, enhance energy security, attract investment, reduce emissions, and integrate solar power without destabilizing the existing grid.

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However, at this time now, we do not really have the infrastructure to make this possible. I mean, we are still talking about metering those who are using grid directly. We have not gotten that right.