Nigeria to launch net billing regulations to boost renewable energy

Nigeria's electricity sector is set to undergo a significant transformation with the upcoming implementation of the Net Billing Regulations 2026 by the Nigerian Electricity Regulatory Commission (NERC). This initiative aims to bolster energy security and expand the adoption of renewable energy sources across the nation.

The regulations establish a framework for "prosumers" – electricity customers who generate their own power, primarily through renewable sources like solar photovoltaic systems. These prosumers will be able to export their surplus electricity to the national distribution networks under a net billing arrangement. NERC announced the plan in a public notice, engaging various stakeholders including electricity consumers, distribution companies, renewable energy developers, and commercial and industrial customers.

NERC stated that the new framework is designed to accelerate the uptake of renewable energy technologies, thereby enhancing the reliability and security of electricity supply for consumers. A key objective is to stimulate private sector participation in distributed electricity generation. By facilitating the integration of renewable energy systems into existing distribution networks, the regulations also support Nigeria's commitment to reducing greenhouse gas emissions.

To be eligible for the net billing scheme, customers must be connected to a licensed distribution company's network and install renewable energy systems compliant with technical standards. These systems must have installed capacities ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp). Approved participants will receive bidirectional net meters to track electricity imported from and exported to the grid. Surplus electricity exported will be credited based on approved export tariffs, offering a financial incentive for renewable energy generation.

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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.