Nigeria to Allow Sale of Excess Solar Power by Consumers

The Nigerian Electricity Regulatory Commission (NERC) has commenced the implementation of the Net Bill Regulation 2026, which will enable eligible electricity consumers to generate their own electricity, particularly through solar installations, and sell surplus power to electricity distribution companies (Discos). This regulatory framework is designed to transform eligible electricity consumers into "prosumers," allowing them to export excess energy back to the grid.

The minimum installation capacity for participation is set at 50 kilowatts peak, with a maximum of 1.5 megawatts peak. The new arrangement aims to monetize excess electricity that would otherwise go unused, particularly during peak sunshine hours.

The initiative is expected to attract private sector investment in renewable energy and support the reduction of greenhouse gas emissions. NERC's goal is to enhance energy security and reliability while facilitating the integration of renewable energy sources into the distribution network.

Eligible consumers must meet specific conditions and obtain the necessary approvals to participate in this new framework.