The Nigerian Electricity Regulatory Commission Nigerian Electricity Regulatory Commission has rolled out a new Net Billing Regulations framework for 2026, opening the door for electricity consumers to generate their own renewable power and sell excess energy back to the national grid.

Under the new arrangement, households and businesses with solar and other renewable energy systems can now become “prosumers” – producing electricity for personal use while exporting any surplus to their distribution companies.

The initiative is designed to expand clean energy use across the country, strengthen electricity supply reliability, attract private investment into power generation, and reduce carbon emissions from fossil fuels.

To participate, customers must be directly connected to a distribution network and install renewable energy systems that meet approved technical standards. They are also required to secure clearance from their electricity distribution company, sign a Net Billing Agreement, and complete registration with the regulator.

The scheme sets system size limits, allowing installations from 50 kilowatt-peak (kWp) up to 1.5 megawatt-peak (MWp), depending on the scale of the user’s project.

Interested applicants will first undergo a technical assessment by their distribution company to determine feasibility before moving on to formal approval and onboarding into the programme.

With the policy, regulators aim to accelerate the adoption of solar energy and integrate more renewable sources into Nigeria’s electricity distribution network while giving consumers a financial incentive for producing clean power.