New Rules Allow Nigerian Solar Users to Sell Excess Power to Grid

Nigerians who generate electricity from solar energy can now earn credits for excess power supplied to the national grid following the introduction of a new net billing framework by the Nigerian Electricity Regulatory Commission (NERC).

The new regulation, known as the Net Billing Regulations 2026, allows eligible electricity consumers to produce power for their own use and export unused energy to distribution companies through a structured arrangement approved by the regulator.

The development is expected to benefit businesses, industries and large energy users that have invested in solar power systems, providing an opportunity to reduce electricity costs while contributing additional power to the grid.

Under the framework, customers with renewable energy installations, mainly solar photovoltaic systems, can generate electricity for their operations and receive credits for surplus energy supplied to distribution networks.

NERC said the initiative is aimed at boosting the adoption of renewable energy, improving electricity reliability, strengthening energy security and encouraging greater private sector participation in power generation.

To qualify for the scheme, participants must be connected to a distribution company's network and install renewable energy systems with a minimum capacity of 50 kilowatt peak (kWp) and a maximum capacity of 1.5 megawatt peak (MWp). They must also obtain approval from their distribution company and register with the commission.

Interested customers will first undergo a technical feasibility assessment by their distribution company before signing a Net Billing Agreement and completing registration with NERC.

The commission said approved participants would be provided with special bidirectional meters capable of measuring electricity taken from the grid and excess power supplied back to it.

Energy exported to the network will attract credits based on tariffs approved by the regulator.