NERC Unlock New Solar Economy with Net Metering

The Nigerian Electricity Regulatory Commission (NERC) has unveiled plans to introduce a net metering framework that will allow households, businesses, and communities generating solar power to sell excess electricity back to the national grid turning unused energy into income and strengthening energy security.

The move comes amid a surge in renewable energy adoption across the country. In the first quarter of 2025 alone, solar panels worth ₦125.3bn were imported into Nigeria, reflecting growing investment by individuals and businesses seeking alternatives to unstable grid supply.

According to NERC, Nigeria’s solar capacity reached 385.7 megawatts in 2024 after an additional 63.5 MW was installed that year. Much of this expansion is driven by off-grid and rural electrification projects, alongside private sector investment.

With the rise of distributed power generation, stakeholders have pressed NERC to create a mechanism for exporting excess energy into the grid for commercial value. In response, the regulator has drafted net billing regulations under the Electricity Act 2023 and is inviting public feedback before final approval.

“Net metering will not only give households and small businesses the opportunity to earn from surplus power but also reduce pressure on the national grid, deepen energy access, and drive inclusive economic growth,” the commission stated.

Public comments on the draft rules can be submitted until September 26, 2025, through NERC’s website.

If implemented, analysts say the framework could unlock a new energy economy where Nigerians transition from being passive consumers of electricity to active contributors powering the nation’s growth.