NERC net billing rules to boost renewable energy adoption – Experts
Lagos, July 2026 (TBL African ) Energy experts have commended the Net Billing Regulations by Nigerian Electricity Regulatory Commission (NERC) 2026 as a landmark policy that would accelerate renewable energy adoption, reduce electricity costs and strengthen Nigeria long-term energy security.
The experts said this in separate interviews with on Sunday in Lagos.
They said the regulation empowers eligible electricity consumers to generate renewable energy for personal use while earning credits for surplus electricity supplied to distribution companies (DisCos).
Introduced by NERC in June, the regulation forms part of reforms under the Electricity Act, which decentralised electricity regulation and expanded states’ oversight of electricity markets.
Under the framework, eligible customers can install renewable energy systems with capacities ranging from 50 kilowatt peak (kWp) to 1.5 megawatt peak (MWp).
To participate, consumers must connect to a distribution network, install compliant renewable energy systems, secure approval from their distribution company, execute a Net Billing Agreement and register with NERC.
The commission said DisCos would conduct technical feasibility assessments before approving applications, while successful participants would receive bi-directional smart meters to accurately measure electricity imported from and exported to the national grid.
Electricity exported to the grid will attract credits based on an export tariff approved by NERC.
Dr Olukayode Akinrolabu, Chairman of the Eko Electricity Distribution Company Customer Consultative Forum, Festac and Satellite Town, said the regulation is a game-changing policy capable of reshaping the electricity landscape.
“It provides a hedge against high tariffs and unreliable supply while creating a new revenue stream for consumers,” he said.
Akinrolabu explained that the framework adopts a net billing model rather than net metering, allowing consumers to prioritise self-generated electricity while receiving credits for excess energy fed into the grid.
According to him, widespread adoption of rooftop solar systems will reduce technical losses, ease pressure on distribution transformers and improve electricity availability during peak daytime demand.
He noted, however, that the regulation’s success would depend on stronger distribution infrastructure, effective regulatory enforcement and the widespread deployment of certified bidirectional smart meters.
Although DisCos may initially experience reduced energy sales from large customers and incur additional infrastructure costs, he said the policy will ultimately help retain customers on the grid while opening new opportunities in renewable energy services.
Also, the Chief Executive Officer of Wurvicat International Ltd., Mrs Atinuke Owolabi, said the regulation remained one of the most significant reforms introduced in the power sector in recent years.
“This is one of the most progressive policies introduced in recent years because it transforms consumers into active participants in Nigeria’s electricity market,” she said.
Owolabi said transparent compensation mechanisms, accurate smart metering and uniform technical standards would encourage broader participation and boost public confidence in the scheme.
She added that strengthening grid infrastructure and establishing an efficient dispute resolution mechanism would be critical to the regulation’s successful implementation.
According to her, the policy aligns with the country’s Energy Transition Plan by promoting cleaner energy, expanding electricity access and supporting the country’s decarbonisation goals.
She further noted that successful implementation could stimulate local manufacturing of solar panels, batteries, inverters and other renewable energy technologies.
This, she added, would create thousands of jobs, reduce dependence on imported components and deepen Nigeria’s renewable energy value chain.
