By Wellington Jopelo
The Federal Government has approved a new electricity framework that allows Nigerians generating solar power to sell excess electricity back to distribution companies (DisCos), in a move aimed at expanding renewable energy use and easing pressure on the national grid.
The policy, introduced through the Nigerian Electricity Regulatory Commission (NERC), is designed to enable households, businesses and institutions with solar installations to not only power their own facilities but also feed unused electricity into the national distribution network.
Under the arrangement, consumers who generate more electricity than they consume will now be able to supply the surplus to DisCos and receive credits based on approved tariff rates set by the regulator.
The initiative effectively introduces a “net billing” system in Nigeria’s electricity sector, where users become both consumers and producers of electricity, commonly referred to as “prosumers.”
According to the regulation, only customers connected to the grid and equipped with approved renewable energy systems will qualify to participate in the scheme. Their installations must also meet technical and safety standards before being connected.
Participants will be required to install special bi-directional meters capable of measuring both energy consumed from the grid and electricity exported back into it. They will also enter formal agreements with their respective distribution companies.
The minimum and maximum capacity for participation have been set to ensure the scheme targets serious solar users, particularly medium and large-scale consumers such as commercial buildings, industries and institutions.
Energy officials say the policy is expected to reduce waste of unused solar energy, encourage investment in renewable power systems and improve overall electricity supply efficiency across the country.
Experts have also described the move as a step toward decentralising power generation in Nigeria, where many consumers currently rely on private generators due to inconsistent supply from the national grid.
The government believes the new system will help strengthen the country’s energy transition goals while promoting cleaner and more sustainable electricity production.
The development comes as Nigeria continues to grapple with persistent power shortages, prompting increased adoption of alternative energy sources such as solar across homes and businesses.