NERC to introduce new rules for net billing and renewable energy

The Nigerian Electricity Regulatory Commission (NERC) is starting the Net Billing Regulations 2026. This plan aims to improve energy security and increase renewable energy use across Nigeria.

NERC shared this news in a public notice on Wednesday. The notice was for electricity consumers, distribution companies, renewable energy developers, commercial and industrial customers, and the general public.

NERC explained that these regulations create a system for eligible electricity customers. These customers, called "prosumers," can generate electricity mainly from renewable sources like solar power for their own use. They can also send any extra electricity back to the distribution networks under a net billing system.

"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."

NERC mentioned that this new system aims to encourage the use of renewable energy technology. It also seeks to provide more reliable electricity for consumers.

The regulators added that this move is meant to boost private sector involvement in generating electricity. It supports efforts to lower greenhouse gas emissions and helps integrate renewable energy into distribution networks.

Who can join:

To join the net billing scheme, customers must be connected to a licensed electricity distribution company.

Customers also need to set up renewable energy systems that meet technical standards and regulatory rules. They must install renewable energy systems with capacities between 50 kilowatt peak (kWp) and 1.5 megawatt peak (MWp).

Additionally, customers must get approval from their distribution company. They also need to sign a Net Billing Agreement and register with NERC.

NERC said that interested customers should apply through their distribution companies for technical feasibility checks before getting approval.

"Upon approval and execution of a Net Billing Agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations."

Metering and compensation

NERC said that approved participants would receive bidirectional net meters. These meters will track the electricity they import and export to the distribution networks.

The commission noted that any extra electricity sent to the grid would earn credits based on tariffs set under the regulations.

This announcement comes as more people show interest in decentralized power generation. There is also a growing adoption of solar solutions among households and businesses looking for reliable power sources.