NERC Announces How Nigerians Can Earn Electricity Bill Credits From Excess Solar Power

NERC Announces How Nigerians Can Earn Electricity Bill Credits From Excess Solar Power

  • NERC says eligible Nigerians can reduce their electricity bills by supplying excess solar power to the grid in exchange for bill credits
  • The scheme covers solar installations with capacities between 50kWp and 1.5MWp, meaning most households with small solar systems may not qualify
  • Applicants must obtain approval from their electricity distribution companies, meet technical requirements and register under the Net Billing Regulations 2026

Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.

The Nigerian Electricity Regulatory Commission (NERC) has urged households and businesses with eligible solar power systems to take advantage of its Net Billing Regulations 2026, which allow them to earn electricity bill credits by supplying surplus power to the national grid.

The commission made the appeal in a post on its official X account, asking interested consumers to review the regulations and confirm whether their solar installations meet the conditions for participation.

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NERC Introduces New Rules Allowing Nigerians to Earn Credits From Excess Solar Power
NERC Announces How Nigerians Can Get Electricity Bill Credits From Excess Solar Power
Source: UGC

Under the arrangement, consumers can use solar electricity to power their homes or businesses and export any excess energy to their electricity distribution companies (DisCos).

The value of the electricity supplied to the grid is then credited to their monthly bills, helping to reduce their power costs.

Who can benefit from NERC's net billing scheme?

The scheme is not open to every solar power user. NERC's guidelines specify that eligible renewable energy installations must have a minimum capacity of 50 kilowatt-peak (kWp) and a maximum of 1.5 megawatt-peak (MWp).

Applicants must also be connected to a DisCo's network, meet the relevant technical and safety requirements, obtain approval from their electricity distribution company, sign a Net Billing Agreement and register with NERC.

These conditions mean that consumers with smaller residential solar systems may not qualify under the current framework, depending on their installation capacity.

The initiative could be particularly useful to commercial and industrial businesses with large solar installations that sometimes generate more electricity than they consume.

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How Nigerians can apply for electricity bill credits

Interested consumers must begin by applying to their respective DisCos for a technical feasibility assessment. Once an installation is approved, the electricity distribution company will provide the appropriate bidirectional meter to measure both the electricity drawn from the grid and the surplus power supplied to it.

Under the scheme, exported electricity will earn credits based on an approved export tariff. These credits will then be deducted from the consumer's electricity bill.

However, the value of electricity exported to the grid may differ from the rate charged for electricity purchased from a DisCo. Participants should also note that the arrangement does not automatically guarantee cash payments for surplus electricity generated.

Why NERC Introduced the net billing regulations

The regulations are intended to encourage the adoption of renewable energy, improve electricity supply reliability and attract private investment in distributed power generation.

The framework is also expected to support Nigeria's efforts to reduce greenhouse gas emissions by encouraging greater use of solar and other renewable energy sources.

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NERC Introduces New Rules Allowing Nigerians to Earn Credits From Excess Solar Power
NERC Announces How Nigerians Can Get Electricity Bill Credits From Excess Solar Power
Source: UGC

NERC advised interested households and businesses to consult the full regulations on its official website for details of the eligibility criteria, technical requirements and application process.

The Net Billing Regulations 2026 were published on June 3, 2026, and are available through the commission's official website.

Source: Legit.ng

Authors:
Victor Enengedi avatar

Victor Enengedi (Business HOD) Victor Enengedi is a trained journalist with over a decade of experience in both print and online media platforms. He holds a degree in History and Diplomatic Studies from Olabisi Onabanjo University, Ogun State. An AFP-certified journalist, he functions as the Head of the Business Desk at Legit. He has also worked as Head of Editorial Operations at Nairametrics. He can be reached via victor.enengedi@corp.legit.ng and +2348063274521.