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NERC Clears Coast for Solar Owners to Sell Electricity to DisCos

Electricity consumers with solar power systems can now sell excess power generated from their device to electricity Distribution Companies (DisCos) nationwide, thus becoming small-scale power producers capable of supplying electricity back to the power network.

This comes under a new arrangement put in place by the power industry regulator, the Nigerian Electricity Regulatory Commission (NERC), under the Net Billing Regulations 2026.

The regulation permits qualifying electricity consumers with renewable energy setups, especially solar, to produce their own power and feed the excess back into the national grid via distribution companies which allows a consumer, upon usage of electricity generated from his solar installation, to sell excess power generated into a distribution company’s network.

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.

Announcing the development via a public notice titled “Commencement of the Net Billing Regulations 2026” the Commission explained that the framework is designed to transform eligible electricity customers into “prosumers”, that is, consumers who not only use electricity but also generate it.

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