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

Nigeria's recent move to allow solar users to sell excess electricity to the national grid, a policy termed Net Billing Regulations 2026, faces immediate hurdles due to a critical infrastructure deficit. The Nigerian Electricity Regulatory Commission (NERC) introduced this policy on June 3, 2026, creating a new category of electricity consumer known as 'prosumers.' These users, with solar systems ranging from 50 kilowatt-peak to 1.5 megawatt-peak, can now legally export surplus power to distribution companies (Discos) and receive payment through an 'Avoided Cost Delivered' credit system. Off-peak exports are valued at 0.55x, while peak exports between 6-9 pm with battery storage earn 0.75x.

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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

Despite the policy's potential to promote renewable energy adoption, improve energy security, and attract private investment, its implementation is hampered by a severe lack of compatible hardware. Ola Ogunsemowo, Chief Executive Officer of Kartel Energy Limited, described the policy as "fantastic" but pointed out that "at this time now, we do not really have the infrastructure to make this possible." He noted that even basic grid metering for direct users remains a challenge. A staggering 90 percent of inverters currently in use in Nigeria are incompatible with feeding power back into the national grid, according to industry estimates.

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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

Further complicating the rollout, the national grid itself has demonstrated fragility, experiencing three collapses in January 2026 alone. This raises serious questions about its capacity to handle additional power from solar sources without destabilization. While the policy aims to ease pressure on the grid and reduce emissions, its success hinges on addressing these fundamental infrastructure and stability issues. The policy's limited cap of 1.5MW for eligible solar installations is seen as a cautious approach by NERC to test the system before wider expansion, drawing parallels to established net metering systems in countries like Germany, which has utilized similar technology for two decades.

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90 per cent of all the inverters in Nigeria

The article frames the situation as a critical juncture for Nigeria's solar energy future. While blackouts have inadvertently spurred a solar boom, the success of the prosumer policy will determine whether this leads to a sustainable distributed energy future or merely more underutilized rooftop solar installations. The policy represents Nigeria's first structured legal pathway for distributed solar integration, with objectives including emissions reduction and enhanced energy security, but the practical challenges of hardware and grid reliability loom large.

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broaden access to clean energy, ease pressure on the national grid, attract private investment into distributed power generation, and help Nigeria reduce its greenhouse gas emissions