Nigeria joins nations harnessing prosumer to diversify energy mix as NERC launches net billing regulations 2026
Nigeria joins nations harnessing prosumer to diversify energy mix as NERC launches net billing regulations 2026
By Onu Okorie
Nigeria’s electricity sector has taken a significant step toward clean energy integration as the Nigerian Electricity Regulatory Commission NERC officially announced the commencement of the Net Billing Regulations 2026, a framework that empowers eligible consumers to generate renewable energy for personal use and sell surplus power back to the national grid.
With the formal commencement of the Net Billing Regulations 2026, Nigeria joins a growing list of nations harnessing prosumer participation to diversify their energy mix.
Under the scheme, Prosumers, eligible customers connected to a distribution company’s network, may install renewable energy systems, particularly solar photovoltaic PV systems, generate electricity for their own consumption, and export any surplus energy to their distribution companies under a net billing arrangement.
To participate, customers must meet a set of conditions: installation of systems that comply with technical and regulatory standards, approval from the relevant distribution licensee, execution of a Net Billing Agreement, and formal registration with NERC. Eligible systems must carry a minimum installed capacity of 50 kilowatt peak kWp and must not exceed a maximum of 1.5 megawatt peak MWp.
The application process begins with the customer approaching their distribution company for a technical feasibility assessment. Those who pass proceed to sign a Net Billing Agreement before completing registration with the Commission.
In a statement posted on its official X account, NERC described the regulations as designed to “promote the adoption of renewable energy technologies, improve energy security and reliability, encourage private sector participation in power generation, reduce greenhouse gas emissions, and support the integration of renewable energy systems into distribution networks.”
The regulations have drawn commendation from the Renewable Energy Association of Nigeria REAN among other stakeholders have formally commended NERC for both the Mini-Grid Regulations 2026 and the net billing framework, describing them as crucial drivers for expanding renewable energy access across Nigeria. The REAN President, Ayo Ademilua, Dr. Fouad Animashaun also praised the Commission for its transparency and efficiency in processing mini-grid permit applications, noting that it had made it considerably easier for developers to operate in the sector.
A notable highlight from a meeting with NERC was discussion around the increase of the mini-grid development threshold to five megawatts MW and above, a move REAN identified as a significant boost for investment and a catalyst for larger-scale renewable energy projects.
For its part, NERC used the occasion to clarify its institutional role, stressing that its mandate is not to directly execute energy projects, but to create a well-regulated, enabling environment that supports private sector growth and broadens grid access for Nigerians.
The Commission assured REAN of a sustained partnership, with a specific focus on capacity building and ongoing stakeholder engagement aimed at accelerating the growth of Nigeria’s renewable energy sector.
The regulations did not emerge overnight. Exercising its rulemaking powers under Sections 46 and 48 of the Electricity Act 2023, NERC developed the draft Net Billing Regulations to establish a structured pathway for what it calls “Prosumer” participation in Nigeria’s electricity market.
The draft was published on the Commission’s official website on September 4, 2025, inviting public comments and submissions from stakeholders and members of the general public. Following the written consultation phase, NERC went further, scheduling in-person public consultation sessions to deepen engagement and gather additional stakeholder feedback before finalising the document. The Commission acknowledged the value of this process, expressing appreciation for contributions received during the period.
The regulations represent a carefully consulted, stakeholder-validated policy instrument, one that signals a maturing regulatory environment and growing institutional confidence in the country’s clean energy transition.
