How to sell excess solar power to the national grid in Nigeria as NERC rolls out net billing

• NERC has launched the Net Billing Regulations 2026 to let users sell excess solar power.

• The policy targets commercial and industrial solar setups between 50 kWp and 1.5 MWp.

• Approved prosumers will receive bidirectional meters to track energy imported and exported.

• Surplus electricity earns financial credits that automatically offset future utility bills.

The Nigerian Electricity Regulatory Commission (NERC) has officially commenced the implementation of the Net Billing Regulations 2026. 

This new policy allows eligible electricity consumers, now referred to as "prosumers", to sell excess electricity generated from solar power systems back to the national grid.

The scheme is designed for businesses, industries, and institutions that generate their own electricity through solar energy. 

Instead of letting unused power go to waste, participants can now export the extra electricity to their local electricity distribution company (DisCo) and earn credits that reduce their future electricity bills.

The move is part of efforts to improve electricity supply in Nigeria by encouraging private investment in renewable energy. 

Although Nigeria has an installed power generation capacity of more than 13,000 megawatts, only about 4,000 to 4,500 megawatts are typically supplied to consumers, far below the country's estimated demand of 20,000 megawatts.

READ ALSO: This is why you experience power outages when it rains 

The programme is mainly for commercial, industrial, and institutional electricity users, not small residential solar installations.

To qualify, applicants must:

• Have a solar energy system with a capacity between 50 kilowatt-peak (kWp) and 1.5 megawatt-peak (MWp).

• Be connected to an active electricity distribution network operated by a licensed DisCo.

• Meet all technical, safety, and environmental requirements set by NERC.

READ NEXT: 7 Mistakes to Avoid When Installing Solar Panels in Nigeria

Interested customers must first apply through their DisCo, which will carry out a technical assessment to determine if the connection is feasible.

Once approved, the customer signs a Net Billing Agreement with the DisCo and completes registration with NERC.

Participants will then receive a special bidirectional meter. Unlike regular meters, this device records both the electricity taken from the grid and the excess electricity supplied back to it.

READ NEXT: 7 Reliable Solar Installers in Nigeria And Exactly What They’ll Charge You

Rather than receiving cash payments, participants earn energy credits for the electricity they export to the grid.

At the end of each billing cycle, these credits are deducted from the cost of the electricity they consumed from the grid.

If the value of the exported electricity is higher than the amount consumed, the remaining credit is carried forward and used to offset future electricity bills.

The regulations also allow approved participants to retain any carbon credits generated through their renewable energy projects, creating additional environmental and financial benefits.

ALSO READ: 4 affordable solar power options for Nigerians: Costs, capacity, and what they can actually run