Nigeria’s power supply has long been unstable. Many consumers therefore generate their own electricity. A growing number now use large solar home systems rather than diesel generators.
These systems often produce more than the household needs. That surplus goes to waste. Consequently, calls have grown for a framework that lets consumers feed spare power into the grid.
What the draft net billing regulations do
Section 113 of the Electricity Act 2023 requires NERC to promote electricity from renewable sources. Using its powers under section 226 of the Act, the Commission has issued the Draft Net Billing Regulations, 2025 and invited stakeholder comments.
The Draft Regulations set the legal, technical and commercial rules for grid interconnection. They also create a way to compensate consumers who inject surplus power into the network.
At their core sits the idea of the Prosumer. A Prosumer generates electricity for its own use, exports the excess, and receives credits. Those credits then offset the energy it draws from the utility.
Who qualifies
The rules apply within a defined band. A renewable energy system must have a minimum installed capacity of 50kWp and must not exceed 5MWp per user.
There is a network limit too. Aggregate excess capacity that Prosumers inject into a DisCo network at 0.4, 11 or 33kV cannot exceed 30 per cent of the average load of the network asset. A DisCo must enter into Net Billing Arrangements on a first come, first served and non-discriminatory basis.
How the application process works
Section 7 sets out a structured process with firm deadlines. Each DisCo must publish the procedure, the eligibility criteria and the tariff structure at its offices and on its website.
An applicant submits the form with proof of occupancy, evidence of the application fee, a certified single line diagram, and the system specification. Where the system already exists, the applicant adds its commissioning date, any prior approvals, generation history, and a certified inspection report.
The DisCo then has ten days to carry out a technical feasibility study and issue its report. If it approves, the user signs a Net Billing Agreement within five days. If it rejects, it must give written reasons and say what changes it wants.
Registration follows. The user applies to NERC with the agreement, and NERC has ten days to issue a registration certificate.
Payment and installation come next. The user pays the connectivity charge within fifteen days, or thirty days where the network needs upgrades. Installation of the system and the net meter must finish within sixty days.
The DisCo carries out any upgrades within ninety days. Where major reinforcement at 11 or 33kV and above applies, the parties may agree up to one hundred and twenty days. The DisCo must then notify NERC within five days.
Inspection closes the process. NEMSA inspects within ten days and either issues an inspection certificate or notifies deficiencies within seven days. Finally, the user asks the DisCo to commission the facility, and the DisCo has three days to do so.
Technical and safety standards
The Draft Regulations also set equipment standards. Every net billing system needs an automatic synchronisation device unless the inverter already provides one. Circuit breakers must handle the maximum fault current that NESIS 2015 specifies. Paralleling devices must withstand 220 per cent of nominal voltage at the interconnection point, in line with IEC 61727.
Isolators carry their own requirements. They must show open and closed positions visibly, stay accessible to DisCo personnel at all times, lock in the open position, and sit at least 2.5 metres above ground level.
A change of ownership or occupancy also matters. The parties must formally transfer the Net Billing Agreement to the new owner or occupier using the prescribed form.
What this means for you
The Draft Regulations remain at consultation stage. Solar owners, developers and DisCos should therefore review the timelines and technical criteria now, and consider whether to comment before the Commission finalises the framework.
Our newsletter sets out the key provisions in full and flags areas where further clarification would help. To read it, download the newsletter using the button below.
