Nigerians can now sell excess solar power back to grid - NERC

The Nigerian Electricity Regulatory Commission (NERC) has launched its Net Billing Regulations 2026, a policy designed to empower electricity consumers to generate their own power from renewable sources and sell surplus energy back to the national grid. This initiative is expected to significantly expand the use of renewable energy, enhance electricity reliability, and attract private investment in distributed power generation.

Under the new framework, consumers, termed 'prosumers,' can install solar photovoltaic systems for their own use and export any excess energy to their respective distribution companies. This arrangement allows households, businesses, and industrial users to reduce their electricity bills by utilizing self-generated power and earn credits for the electricity supplied to the grid.

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The Regulations establish a framework that enables eligible electricity customers (Prosumers) to generate electricity from renewable energy sources, primarily solar photovoltaic systems, for their own consumption and export surplus energy to the distribution network under a Net Billing Arrangement.

The regulations aim to promote renewable energy technologies, bolster energy security, encourage private sector participation in distributed generation, reduce greenhouse gas emissions, and facilitate the integration of renewable energy systems into existing distribution networks. To participate, customers must be connected to a distribution company, install systems meeting regulatory standards, and obtain approval.

Systems must fall within an installed capacity range of 50 kilowatt-peak (kWp) to 1.5 megawatt-peak (MWp). Participants will be equipped with bidirectional meters to track electricity consumed from and exported to the grid. Exported energy will be credited according to a tariff approved by the NERC. This development is anticipated to accelerate rooftop solar adoption and promote a more decentralized electricity generation system in Nigeria.

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The objectives of the Net Billing Regulations 2026 are to: promote the adoption of renewable energy technologies; enhance energy security and reliability for electricity consumers; encourage private sector participation in distributed generation; support the reduction of greenhouse gas emissions; and facilitate efficient integration of renewable energy systems into distribution networks.