By Editor Mahmoud Muhammad Kano
Nigerians who generate electricity from solar can now sell excess power back to the national grid. The Nigerian Electricity Regulatory Commission, NERC, says the Net Billing Regulation 2026 takes effect immediately, marking a major shift in how electricity is produced and consumed in the country.
Under the scheme, eligible customers with renewable energy systems, mainly solar photovoltaic setups, will use the power they generate for their own needs first. Any surplus will be exported to their distribution company’s network. In return, customers will receive credits based on an export tariff approved by NERC.
NERC explained that the regulation is designed to broaden access to clean energy, reduce pressure on the overstretched national grid, attract private investment into distributed power, and help Nigeria cut down on greenhouse gas emissions. It effectively turns households and businesses into energy producers, not just consumers.
To qualify, applicants must be connected to a licensed distribution company’s network. They must also install a renewable energy system with capacity between 50 kilowatts peak and 1.5 megawatts peak. That range covers large residential estates, commercial complexes, factories, schools, and hospitals.
The commission said the export tariff will be transparent and approved by the commission, so customers are compensated fairly for every unit of electricity they feed into the grid. This creates a financial incentive for more people to invest in solar instead of relying solely on generators and diesel.
Energy experts describe the policy as a “steady step” toward energy democracy. For years, businesses and households bore the full cost of generating their own power without any return. Now, solar users can recover part of their investment by selling unused electricity, making clean energy more bankable.
The timing is significant as Nigeria pushes for energy transition and grid stability. By encouraging distributed generation, NERC hopes to ease load on central power plants and reduce blackouts. It also aligns with global best practices where countries like India, South Africa, and Kenya already run similar net billing/net metering programs.
Bottom line for Nigerians: If you have a solar system of 50kW to 1.5MW and you’re connected to a Disco, you can now apply to participate. The regulation gives both environmental and economic benefits — cleaner air, lower diesel costs, and credits on your electricity bill. For many large households and businesses, this could be the push needed to go solar.
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