Nigerians with qualifying solar power systems can now receive credits on their electricity bills by supplying excess electricity to distribution companies under the Net Billing Regulations 2026.

The Nigerian Electricity Regulatory Commission (NERC) has encouraged households and businesses to take advantage of the framework, which allows eligible consumers to generate electricity for their own use and export surplus power to their respective electricity distribution companies.

Under the arrangement, electricity users can supply excess energy to the distribution network whenever their solar installations generate more power than they need. The value of the exported electricity will then be calculated using an approved tariff and credited to their electricity bills.

However, the scheme is not open to every solar power user. The regulations stipulate that eligible renewable energy installations must have a minimum capacity of 50 kilowatts-peak (kWp) and a maximum capacity of 1.5 megawatts-peak (MWp).

This requirement means that many households with small rooftop solar systems may not qualify, while businesses, industrial facilities and other customers with larger installations could benefit from the arrangement.

Under the net billing system, participating customers can generate electricity through solar photovoltaic systems, consume the power they need and export any surplus to their distribution companies.

The electricity supplied to the network attracts credits based on an export tariff approved by NERC. These credits are applied to the customers’ electricity bills, helping to reduce the cost of power obtained from the distribution network.

However, the arrangement does not automatically guarantee cash payments for excess electricity. The compensation is provided through electricity bill credits, and the rate for exported power may differ from the tariff customers pay for electricity they consume.

To qualify, interested consumers must be connected to the network of a licensed electricity distribution company and operate renewable energy systems that meet the required technical and safety standards.

Applicants must also obtain approval from their distribution companies, sign a Net Billing Agreement and register with NERC before participating in the programme.

The application process begins with a technical feasibility assessment conducted by the relevant distribution company to determine whether the proposed installation can be safely connected to the network.

Approved participants must also have bidirectional meters capable of measuring both the electricity drawn from the grid and the surplus power supplied to it.

The initiative is expected to encourage greater investment in renewable energy by allowing eligible consumers to obtain additional value from electricity they generate but do not immediately use.

Businesses with large solar installations could benefit from lower electricity expenses, particularly where their systems regularly produce more power than they consume.

The framework is also intended to promote renewable energy adoption, strengthen electricity supply reliability, attract private investment in distributed power generation and support efforts to reduce greenhouse gas emissions.

However, the actual financial benefits will depend on the amount of surplus electricity exported, the approved export tariff and the cost of installing and connecting a qualifying system.

Interested consumers have been advised to review the regulations and consult their respective distribution companies to determine whether their installations meet the requirements for participation.