- The Nigeria net billing framework 2025 empowers prosumers to export surplus electricity to the grid and receive fair, transparent compensation.
- The framework promotes the growth of renewable energy while strengthening national energy security and sustainability.
The Nigerian Electricity Regulatory Commission (NERC) recently introduced the Draft Net Billing Regulations 2025, pursuant to Section 46(2) of the Electricity Act 2023.
The regulation creates a structured system that enables electricity consumers, known as prosumers, to sell excess renewable energy to Distribution Companies (DisCos). In return, they earn credits to offset future electricity bills. This move marks a significant step in Nigeria’s shift towards a cleaner and more decentralised power sector.
The draft regulation standardises interconnection procedures, ensures fair compensation for exported energy, and strengthens grid reliability. When implemented, Nigeria will join countries such as South Africa, India, Italy, and Chile that already operate similar frameworks. As a result, the regulation will speed up Nigeria’s energy transition and advance its climate goals.
The new rule targets renewable energy systems, primarily solar and small wind, with capacities ranging from 50 kWp to 5 MWp. DisCos must process applications on a first-come, first-served basis without discrimination. However, injected power cannot exceed 30% of a DisCo’s average load.
The regulation sets out a three-step application process. Applicants first obtain approval from their DisCo, then register with NERC, and finally complete inspection through the Nigerian Electricity Management Services Agency (NEMSA).
Recommendations
While the approach stated above maintains oversight, it may slow adoption. Here are some recommendations from Detail Commercial Solicitors, as outlined by Financial Nigeria, to ensure the Drat Net Billing is successful.
- NERC should build a digital platform that integrates all steps to improve efficiency.
- Every installation must meet strict technical standards.
- The voltage should remain within ±5% of its nominal value.
- Only engineers licensed by the Council for the Regulation of Engineering in Nigeria (COREN) can install or maintain systems.
- Prosumers must also utilise smart meters that accurately record both imported and exported energy.
- The billing system allows credits to roll over indefinitely when exports exceed consumption. However, deleting these credits when a prosumer relocates discourages investment. NERC should instead enable credit transfers or refunds to keep participants engaged.
In conclusion, the Draft Net Billing Regulations 2025 mark a significant milestone in Nigeria’s renewable energy development. With simpler procedures and broader inclusion, the Nigerian net billing framework could form the backbone of a sustainable, inclusive, and energy-secure future.