NERC: How Nigerians With Large Solar Systems Can Earn Electricity Bill Credits

The Nigerian Electricity Regulatory Commission (NERC) says eligible consumers can cut their electricity bills by supplying surplus solar power to the grid in exchange for bill credits. The scheme, contained in the Net Billing Regulations 2026, covers solar installations with capacities between 50 kilowatt-peak (kWp) and 1.5 megawatt-peak (MWp).

NERC announced the window in a post on its official X account, asking interested consumers to review the regulations and confirm whether their solar installations meet the conditions for participation.

Most small household systems will not qualify

The floor of 50kWp means most households running small solar systems will not qualify under the current framework. The scheme is targeted at consumers whose installations are large enough to generate power beyond their own use.

Applicants must be connected to a distribution company's network, meet the relevant technical and safety requirements, obtain approval from their electricity distribution company (DisCo), sign a Net Billing Agreement and register with NERC. They must also apply to their DisCo for a technical feasibility assessment before anything else.

Commercial and industrial businesses with large solar installations stand to gain the most, since they sometimes generate more electricity than they consume.

How the credit system works

Under the arrangement, a consumer uses solar power for the home or business and exports the excess to the DisCo. Once an installation is approved, the DisCo provides a bidirectional meter to measure both electricity drawn from the grid and surplus power supplied to it.

Exported electricity earns credits based on an approved export tariff. Those credits are then deducted from the consumer's monthly electricity bill, lowering the cost of power.

NERC warned that the value of electricity exported to the grid may differ from the rate charged for electricity purchased from a DisCo. The framework also does not automatically guarantee cash payments for surplus electricity generated. Consumers should expect credits against their bills, not a cash payout.

Why the commission is pushing it

NERC says the regulations are meant to encourage the adoption of renewable energy, improve the reliability of electricity supply and attract private investment in distributed power generation. The framework is also expected to support Nigeria's efforts to reduce greenhouse gas emissions by pushing greater use of solar and other renewable sources.

The Net Billing Regulations 2026 were published on June 3, 2026, and are available on the commission's official website. NERC advised interested households and businesses to consult the full regulations for details of the eligibility criteria, technical requirements and application process.

For Nigerian businesses carrying large diesel and generator bills, the scheme offers a route to recover value from solar capacity that would otherwise go to waste. For the grid, it adds distributed generation at a time when supply remains thin.