Consumers can sell excess solar power to Discos – FG

The Nigerian Electricity Regulatory Commission has commenced the implementation of the Net Billing Regulations 2026, creating a framework that will allow eligible electricity consumers with renewable energy systems, particularly solar installations, to generate electricity for their own use and sell surplus power to electricity distribution companies. The development is expected to accelerate the adoption of renewable energy technologies across the country, encourage private sector investment in power generation, and provide an additional source of electricity supply to the distribution network. In a public notice titled “Commencement of the Net Billing Regulations 2026” and released on Wednesday, the commission notified electricity consumers, distribution companies, renewable energy developers, commercial and industrial customers, and the general public of the commencement of the new regulatory regime. According to the regulator, the framework is designed to transform eligible electricity customers into what it describes as “prosumers” — consumers who not only use electricity but also generate it. The commission also specified that participating customers must have a “renewable energy system with a minimum installed capacity of 50 kilowatt peak and a maximum of 1.5 megawatt peak”. It stated that the regulations establish a framework that enables “eligible electricity customers (prosumers) to generate electricity from renewable energy sources, primarily solar photovoltaic systems, for their own consumption and export surplus energy to the distribution network under a net billing arrangement.” The arrangement effectively creates a pathway for businesses and institutions with large solar power installations to monetise excess electricity that would otherwise remain unused. Under the framework, a customer with a solar power system will first consume electricity generated from the installation. If the system produces more electricity than is required at any given time, the excess energy can be exported into the distribution company’s network. The amount of electricity exported will be measured through specially installed bidirectional meters capable of recording both electricity consumed from the grid and electricity supplied to it. The exported energy will then be credited in accordance with tariffs approved by the commission. The regulation marks a significant shift from the traditional electricity consumption model in which customers solely purchase power from the grid. Under the new arrangement, eligible customers can become small-scale power producers c