Experts hail NERC net billing rules as boost for solar adoption, energy security

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Key points

• Energy experts described NERC’s 2026 Net Billing Regulations as a major step toward expanding renewable energy use in Nigeria.
• The policy allows eligible consumers to generate electricity for personal use and earn credits for surplus power supplied to the grid.
• Experts said the framework could reduce electricity costs, ease pressure on the national grid and improve energy security.
• They also called for stronger grid infrastructure, smart metering and effective regulation to ensure successful implementation.

Main story

Energy experts have backed the Nigerian Electricity Regulatory Commission’s (NERC) newly introduced Net Billing Regulations, saying the framework could transform Nigeria’s electricity market by encouraging investment in renewable energy, lowering electricity costs and improving energy security.

Speaking with the News Agency of Nigeria (NAN) in Lagos, the experts said the regulation marks an important shift in electricity policy by allowing consumers to become both electricity users and suppliers through renewable energy generation.

The regulation, introduced by NERC in June under the provisions of the Electricity Act, establishes a framework through which eligible customers can install renewable energy systems for their own consumption and receive credits for excess electricity exported to the distribution network.

The policy applies to renewable energy installations ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp). Customers wishing to participate must obtain approval from their electricity distribution company, enter into a Net Billing Agreement, install compliant renewable energy systems and register with the regulator.

To support the scheme, distribution companies will assess the technical suitability of applications before granting approval, while successful participants will be provided with bi-directional smart meters capable of recording electricity supplied to and drawn from the grid. Credits for exported electricity will be calculated using tariffs approved by NERC.

Chairman of the Eko Electricity Distribution Company Customer Consultative Forum for Festac and Satellite Town, Dr Olukayode Akinrolabu, described the regulation as a significant milestone for the power sector.

He said the framework would reduce consumers’ dependence on grid electricity, help shield them from rising tariffs and create opportunities for households and businesses to recover part of their energy costs through electricity exports.

Akinrolabu added that increased deployment of rooftop solar systems could ease pressure on distribution infrastructure by reducing demand during peak periods and lowering technical losses across the network.

However, he cautioned that the success of the initiative would depend largely on improvements in grid infrastructure, strict regulatory oversight and widespread deployment of certified bi-directional smart meters.

Chief Executive Officer of Wurvicat International Ltd., Atinuke Owolabi, also described the regulation as one of the most important policy reforms introduced in Nigeria’s electricity sector in recent years.

According to her, the framework changes the traditional relationship between electricity consumers and utilities by allowing consumers to actively participate in electricity generation instead of relying solely on power supplied by distribution companies.

She stressed that transparent compensation arrangements, reliable metering systems and uniform technical standards would be essential to building public confidence and encouraging widespread participation.

Owolabi also said the regulation supports Nigeria’s Energy Transition Plan by promoting cleaner sources of electricity and expanding access to sustainable energy.

She added that increased demand for renewable energy systems could stimulate local manufacturing of solar panels, batteries, inverters and related equipment, creating jobs while reducing Nigeria’s dependence on imported renewable energy technologies.

The issues

Nigeria faces persistent electricity shortages, rising energy costs and limited access to reliable power. The Net Billing Regulations are designed to encourage consumers to invest in renewable energy while supporting grid stability and expanding electricity supply through distributed generation.

What’s being said

“It provides a hedge against high tariffs and unreliable supply while creating a new revenue stream for consumers.” — Olukayode Akinrolabu

“This is one of the most progressive policies introduced in recent years because it transforms consumers into active participants in Nigeria’s electricity market.” — Atinuke Owolabi

What’s next

NERC and electricity distribution companies are expected to begin implementing the framework, including approving eligible projects, deploying bi-directional smart meters and setting export tariffs for surplus renewable energy supplied to the grid.

Bottom line

Energy experts say NERC’s net billing policy could become a major catalyst for solar adoption, lower electricity costs and strengthen Nigeria’s energy security if supported by stronger infrastructure, smart metering and effective regulation.