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NERC Net Billing Regulations 2026: Can You Really Sell Solar Power Back to the Grid in Nigeria?

Donvrichy Blog
17 Jun, 2026

 



If you've ever stared at your inverter battery at 11pm wondering if there's a way to turn all that "wasted" solar power into actual cash, you're not alone. For years, Nigerians have only known one direction for electricity money to flow — out of your pocket and into your DisCo's account. But that's now changing, at least for some.

In June 2026, the Nigerian Electricity Regulatory Commission (NERC) officially commenced the Net Billing Regulations 2026, a new policy that allows certain electricity users to generate their own power — mostly through solar — and sell the extra back to the national grid. Sounds like the dream, right? Before you start imagining your solar panels paying your rent, let's break down exactly what this means, who it's actually for right now, and what it could mean for everyday households going forward.

What Is NERC's Net Billing Regulations 2026?

In simple terms, Net Billing is a framework that lets electricity consumers become what NERC calls "prosumers" — people who both produce and consume electricity. Under the regulation, eligible users can install renewable energy systems (mainly solar photovoltaic panels), use the power they generate for themselves, and export any leftover electricity into the grid through their Distribution Company (DisCo).

That exported power isn't paid out in cash directly. Instead, it's tracked through a bidirectional smart meter, which records how much electricity you pull from the grid versus how much you send back. At the end of the billing cycle, the energy you exported is used as a credit to offset your electricity bill.

So rather than getting a "solar salary," think of it more like a bill-reduction system — the more surplus you feed back, the smaller your NEPA bill gets, and in some cases, it could even wipe it out entirely.

Who Actually Qualifies for Net Billing Right Now?

This is the part most viral posts and WhatsApp forwards are getting wrong — and where Donvrichy Blog likes to keep it real, no filter, just facts.

As it stands, the Net Billing Regulations 2026 are primarily targeted at commercial and industrial electricity users, with solar installations ranging roughly between 50kWp and 1.5MWp. That's a serious solar setup — far beyond the typical 1kVA–5kVA inverter system most homes use to survive NEPA outages.

In practical terms, this means the first wave of beneficiaries will likely be:

  • Businesses and factories with large rooftop or ground-mounted solar arrays
  • Estate developers and gated communities with shared power infrastructure
  • Schools, hospitals, and institutions running sizeable solar systems
  • Commercial property owners (malls, office complexes, event centers)

If you're an average homeowner with a 3kVA solar inverter setup, you likely don't qualify yet — but the framework is designed to expand, and smaller-scale residential participation is widely expected to follow as the system matures and bidirectional metering becomes more available.

How Does the Net Billing Process Actually Work?

For eligible "prosumers," here's the general flow under the new framework:

  1. Install an approved renewable energy system — primarily solar PV, meeting the capacity requirements set by NERC.
  2. Connect to your DisCo's network — you must already be a registered electricity customer.
  3. Get a bidirectional (two-way) smart meter installed — this tracks both the electricity you import from the grid and the electricity you export to it.
  4. Generate and consume your own power during the day, especially during peak sun hours.
  5. Export your surplus to the grid automatically through the meter.
  6. Receive bill credits at the end of your billing cycle based on your net energy balance — what you took minus what you gave.

Essentially, your meter does the maths for you. If you exported more than you imported in a given period, that surplus rolls over as credit against future bills.

What About Lagos and Other States?

Here's something many people miss: under the Electricity Act 2023, NERC's authority now covers mainly the national and inter-state grid layer. Several states have taken over regulation of their own electricity markets after completing a regulatory handover — Lagos State is one of them, with its own regulator, LASERC, building a separate electricity market with its own metering and net billing rules.

So if you're in Lagos, the rules you eventually operate under for net billing may come from LASERC rather than NERC directly. If you live in another state, it's worth checking whether your state has completed its own electricity regulation handover, as this could affect how (and when) net billing rolls out locally.

Frequently Asked Questions About Net Billing in Nigeria

Can I sell solar power to the grid in Nigeria right now? Only if you fall under the eligible "prosumer" category — generally commercial or industrial users with solar systems between 50kWp and 1.5MWp, connected to a DisCo network with an approved bidirectional meter. Most residential homeowners cannot yet participate, but the framework is expected to expand over time.

How much money can I make from net billing? There's no fixed cash payout. Instead, your exported electricity is converted into bill credits that reduce or offset your electricity bill for that period. The "earning" is really a saving — potentially a significant one if your system regularly produces more than you use.

Do I need a special meter for net billing? Yes. You'll need a bidirectional smart meter that can measure electricity flowing both into and out of your premises. These are provided to approved prosumers as part of the net billing arrangement.

Is net billing the same as net metering? They're similar concepts — both involve measuring the difference between energy you consume and energy you export — but "net billing" specifically refers to how that difference is converted into a billing credit under NERC's 2026 framework.

Will small residential solar users be included in the future? While the initial rollout targets larger commercial and industrial setups, the policy is part of a broader push toward decentralised, renewable energy adoption in Nigeria. As metering infrastructure becomes more widespread and affordable, residential inclusion is a likely next step — though no official timeline has been announced.

Why is this policy a big deal for Nigeria? For a country where unreliable grid power has pushed millions toward expensive generators and fuel costs, a system that rewards people for generating clean energy — instead of just consuming it — represents a real shift in how Nigerians could relate to electricity in the coming years.

The Bottom Line

The NERC Net Billing Regulations 2026 mark one of the more significant shifts in Nigeria's power sector in recent memory — but it's important to separate the hype from the reality. Right now, it's mainly businesses, institutions, and large solar setups that stand to benefit directly. For everyday households, the immediate impact is limited — but the direction is clear: Nigeria is opening the door for ordinary people to eventually turn their solar panels into a genuine source of savings, and maybe even income.

If you're considering investing in solar — whether for your home or your business — this is a policy worth keeping an eye on. The earlier the infrastructure matures, the sooner regular households could join in.

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