New Net Billing Regulation Enables Solar Users to Earn Credits for Excess Electricity

Nigeria has taken another important step towards expanding the use of distributed renewable energy with the introduction of the Net Billing Regulation 2026 by the Nigerian Electricity Regulatory Commission (NERC). 

For many commercial, industrial and public-sector organisations, solar photovoltaic (PV) systems generate more electricity than is needed during certain periods, particularly during weekends, holidays or other low use periods. The surplus electricity is often wasted.

The new regulation changes that. It establishes Nigeria's first standard framework that allows eligible customers with grid-connected solar PV systems to export surplus electricity to the local distribution network and receive credits on their electricity bills. This would help organisations maximise the value of their solar investments while encouraging greater adoption of distributed renewable energy. The regulation also creates new market opportunities for advanced metering technologies, particularly smart meters with bidirectional and time-of-use capabilities, while supporting the digitalisation of Nigeria's electricity distribution networks.

The regulation currently applies to eligible solar installations between 50 kW and 1.5 MW, subject to technical approval, network capacity, and compliance with established safety and operational requirements. Beyond creating additional value for solar investors, it provides a clear and transparent framework for integrating distributed renewable energy into Nigeria's electricity distribution network while safeguarding grid reliability and safety. It also supports Nigeria's broader energy transition by encouraging greater use of clean electricity and improving access to reliable energy services.

To participate, customers submit an application to their Distribution Company (DisCo), which assesses both the customer's eligibility and the network's ability to accommodate electricity exports. Following technical assessments, registration and commissioning, eligible customers can begin exporting surplus electricity to the DisCo at the NERC approved tariff, which is netted off the customer’s electricity bills, providing value for both the customers and the distribution company.

The regulation was developed by the Nigerian Electricity Regulatory Commission (NERC) with support from the German Federal Ministry for Economic Cooperation and Development (BMZ) and the European Union through the Nigerian Energy Support Programme (NESP), implemented by GIZ in collaboration with the Nigeria’s Federal Ministry of Power.

Our infographic explains how the process works.