NERC Begins Net Billing Regulations 2026 to Boost Renewable Energy
By Aboki Forex —
The Nigerian Electricity Regulatory Commission (NERC) has announced the start of the Net Billing Regulations 2026. The move is aimed at strengthening energy security and expanding renewable energy across the country.
NERC disclosed this in a public notice on Wednesday. The notice was addressed to electricity consumers, distribution companies, renewable energy developers, commercial and industrial customers, and the general public.
According to the commission, the regulations create a framework that allows eligible electricity customers to generate their own power. These customers, called “prosumers,” will mainly use renewable energy sources like solar photovoltaic systems. They can consume the electricity they generate and export any excess to distribution networks under a net billing arrangement.
“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,” the notice stated.
Goals of the New Framework
NERC said the framework is designed to promote the adoption of renewable energy technologies. It also aims to enhance energy security and reliability for electricity consumers.
The regulators added that the move encourages private sector participation in distributed electricity generation. It also supports efforts to reduce greenhouse gas emissions and helps integrate renewable energy systems into distribution networks efficiently.
Eligibility Requirements
To join the net billing scheme, customers must be connected to the network of a licensed electricity distribution company. They must also install renewable energy systems that meet technical standards and regulatory requirements.
The systems must have installed capacities between a minimum of 50 kilowatt peak (kWp) and a maximum of 1.5 megawatt peak (MWp). Customers are required to get approval from their distribution company, sign a Net Billing Agreement, and register with NERC.
Interested customers must apply through their distribution companies for technical feasibility assessments before approval. “Upon approval and execution of a Net Billing Agreement, the applicant shall register with NERC in accordance with the provisions of the Regulations,” the commission said.
Metering and Compensation
NERC said approved participants will get bidirectional net meters. These meters measure electricity imported from and exported to distribution networks.
Surplus electricity exported to the grid will attract credits. These credits will be based on export tariffs approved under the regulations.
The move comes as more households and businesses turn to solar energy and other decentralised power generation options. Many are seeking alternatives to the unreliable grid supply.