Consumers Can Sell Excess Solar Power to Discos Under New FG Policy

The Nigerian Electricity Regulatory Commission (NERC) has commenced the implementation of the Net Billing Regulations 2026, a policy that allows eligible electricity consumers with renewable energy systems to generate power for personal use and sell surplus electricity to distribution companies.

The new framework is expected to encourage wider adoption of renewable energy technologies, particularly solar power, while creating additional sources of electricity for the national distribution network.

In a public notice announcing the commencement of the regulations, the commission said the initiative establishes a system that enables qualified consumers to become “prosumers” — electricity users who also generate power.

According to NERC, eligible participants must operate renewable energy systems with a minimum installed capacity of 50 kilowatt peak and a maximum capacity of 1.5 megawatt peak.

The commission explained that the framework allows customers, primarily those using solar photovoltaic systems, to consume electricity generated from their installations and export any excess energy to the distribution network under a net billing arrangement.

Under the system, surplus electricity supplied to the grid will be measured through bidirectional meters capable of recording both imported and exported energy.

The exported electricity will then be credited based on tariffs approved by the commission, providing participating consumers with an opportunity to earn value from excess power generation.

The regulation marks a significant shift in Nigeria’s electricity market by enabling consumers to transition from being solely electricity buyers to becoming small-scale power producers.

Industry experts believe the initiative will be particularly beneficial to factories, universities, hospitals, shopping malls, telecommunications facilities, industrial estates and other large commercial establishments that already operate substantial solar power systems.

The commission noted that the policy is designed to stimulate private investment in renewable energy, improve energy efficiency and contribute to expanding electricity supply across the country.

Stakeholders have also expressed optimism that the framework could reduce pressure on the national grid while supporting Nigeria’s transition toward cleaner and more sustainable energy sources.