How Nigerians fit sell electricity to national grid - who dey qualify?

Foto of man wey dey fix power

Wia dis foto come from, TCN

    • Author, Faith Oshoko
    • Role, Journalist
    • Reporting from, Lagos
  • Published
  • Read am in 8 mins

Di Nigerian Electricity Regulatory Commission don start di Net Billing Regulations 2026.

Dis na new framework wey go allow pipo wey dey eligible to fit generate dia own power mainly through solar energy, use am and if dem over-generate dem fit sell am give dia Disco.

How e dey work be say you fit send di extra power give your Disco back and get credits. Dis go dey under regulated billing arrangement.

"Dis go effectively create wetin di sector dey call 'Prosumer' wey mean say you be both consumer and producer of electricity", na so NERC tok.

Daniel Anomfueme, solar sabi pesin from di joinbodi, DIY Solar Nigeria wey bin dey involved wit di draft of di bill however, tok say dis mata no really concern evriday Nigerians weda as e concern di selling of power abi di benefits of more power for di grid.

Nigerian National Grid

Wia dis foto come from, PIUS UTOMI EKPEI/AFP via Getty Images

DIY Solar Nigeria na peer-to-peer learning community wey dey discuss and chook mouth inside policies about solar power and renewable energies wey also include electric cars.

Dis one dey come as di power situation for Nigeria don cause kwanta sotey di kontri presidential building, Aso Rock don invest in solar power even wit regular reports say di grid dey collapse.

Many experts believe say old equipment, small capacity, and poor maintenance dey affect di power network and wey dey make light dey lose for transmission.

However, dis new move no go dey for evribodi, according to di statement wey NERC release, di net billing arrangement no go be for evribodi.

From dia statement, dem reason say di main pipo wey go fit to join dis setup na pipo wey dey generate from 50 kilowatt to 15 megawatt.

Oga Anomfueme reason say di reason na di minimum capacity cut off mark wey NERC bin put no be somtin wey ordinary pipo fit fulfill. Dem say, "You dey look at 100 to 500 watt panels to reach di capacity of 50kWh. Plenti pipo weda dem be residential or commercial no get dat capacity for producing power of dat scale. Wetin be my theory be say dem dey find way wey Solar mini grids go fit do am dey sell give DisCos."

Tori be say dis go target mid to large businesses and industries. Businesses wey get factories and go fit get di space to install dis solar power generating sets.

Di criteria to join na say di pesin dey connected to DisCo, to install renewable energy wey meet regulatory standards and get approval from dia electricity distributor.

Already, some kontris don dey run dis initiative.

For January 2020, di United Kingdom bin announce payment scheme wia households go fit to make money from electricity wey dem sell back give national grid. Di Smart Export Guarantee bin cap di amount for di electricity to 5 to 15p per kWh and dey limited to solar systems wey bin dey installed by MCS certified or equivalent installer.

For China, di govment bin dey run program, wey dem call di Feed-in Tariffs wey bin dey pay pipo for dia power supply wey bin dey part of di Renewable Energy Law from 2006.

Di World Economic Forum, bin quote one noodle shop owner wey tok say e don sell almost $9,000 of clean electricity wey im bin generate from im rooftop solar panels since 2018 sake of dis same programme.

However, for 2025, China start to port from standardised measure of wetin to dey pay prosumers to allow market forces to regulate di price of renewable power.

But still, reactions as to di release of di regulations don dey split to pipo wey tink say e go work well for di kontri, or pipo wey dey reason say corruption go kill am or pipo wey reason say na way for govment to shift from dia responsibility.

However, di break from monopoly of who fit generate electricity bin start from di Electricity Act of 2023 wey say no more monopoly of Nigeria electricity generation, transmission, and distribution for di national level.

Also, e give powers to states, companies and individuals wey wan generate, transmit and distribute electricity.

Di Act also allow state to fit give license to private investors to operate mini-grids and power plants within di state.

For di Electricity Act 2023, NERC go still dey regulate di electricity sector within Nigeria for states wey no get dia own regulators.

Wetin di Net Billing Regulations 2026 tok?

According to di document about di conditions to join di prosumer sector (wey be wen you be both consumer and producer of power) na to:

  • Dey connected to DisCo network
  • Get renewable energy system wey get minimum capacity of 50kWp and maximum of 1.5MWp
  • Get approval from DisCo
  • Must sign Net Billing Agreement and register wit NERC
  • Di pipo wey dey approved go get bidirectional meters wey go track di electricity wey dey imported from di grid and electricity wey dey exported to di grid.

On di mata of net billing, oga Anomfueme break am down say, "For Net Billing make we say I dey get Band A rate wey fit be 205 naira/kW, for net billing if I dey sell am back give Disco, I no go sell am for 205 naira, I fit sell am for 150 naira per kilowatt so I no dey get wetin I dey spend, na like a discount rate to wetin I dey get from di grid."

E add say, "So di difference be say dis mini grids gatz sell at discount give di DisCos but generally e no be like say dem be big projects like dat so e fit be beta passive income."

Di advantages of dis move dey two folds sake of say di pipo wey dey targeted to generate dis power fit gain passive income for di service wey dem provide give national grid as well as DisCos wey go fit buy electricity for cheaper prices but Anomfuemeno really reason say e go affect di day-to-day Nigerians for road.

One of di reasons be say, " If you notice, NEMSA recently release dia own frame work for micro grid connections, dat na dia guidelines for solar mini grid exploration. So my theory be say, dem dey find way wey solar mini grids go fit sell give discos so dat na pretty much wetin dis move go do.

"And most times for dis kain cases, di end users fit no dey use as much electricity as wetin di mini grids dey provide, so in some instance dem go be a lot of potential for more electricity to dey generated but dem no get consumption or wia dem go fit use. So my thought be say dem wan find way to carry am sell give di grid wey mean basically to sell am give DisCos."

Side profile of mini grid for Doma, Nasarawa State

Wia dis foto come from, KOLA SULAIMON/AFP via Getty Images

Wetin we call dis foto, Solar mini grids don dey give power to rural comunities for years but dis Net Billing fit get dem to generate energy to dia full potential

Di most important tin be say no be evriday renewable energy pipo go fit use dis kain tin.

Di reason wey everiday pipo no go fit run dis kain parole na multi-fold wey include machinery, govment interference and di lack of stability for di national grid.

E say, "Di pesin gatz get 50kW panels, no residential installation get am like dat and in fact most commercial installations no dey use dat level of panels, you dey look at 100 to 500 watt panels to get to dat capacity.

Anoda tin be say, "e fit cause instability for grid to save di power, wen different pipo dey send power give di grid, yes engineering fit stop am but, plenti tins dey to consider, e fit cause unstable grid and our grid sef e kukuma no stable. So dose na di tins, I tink dem wan block".

Last of all, e reason say di upgrade di equipment go take no go make sense for residential solar users.

"Take for instance, me for my area if I go count out ten houses, how many get solar panels, na like two. So I no fit come tok say make dem upgrade di metres and oda stuff to collect power from me alone to give power. Wen e be say if I on my two ACs wit solar, e fit no last 24/7. Dat na di issue."

But dis new regulation fit dey useful to help regular pipo sell dia energy.

One private power start up, TS Power Grid, wey dey run peer-to-peer power platform, bin tok for statement say di regulations na di kain framework dem need to scale and distribute renewables safely and compliantly.

Oga Anomfueme reveal say rules already dey wey dey for pipo to sell power giv e dia neighbours.

E tok say, "According to di Electricity Act of 2023, if you dey below one megawatts wey be wetin dem classify as micro grid, you no need licence to sell your power, you just need to register wit NERC."

How you fit transfer power to di grid?

Dem be two different types of inverters wey dey for market wey dem dey call off grid and hybrid inverters.

Some inverters na off grid inverters wey fit connect to di grid to collect power from di grid but no fit send power give di grid, e make up most of di affordable inverters for di market.

But hybrid inverters fit give di grid and to collect from di inverters.

And dis sending to di grid na anoda tin. To send to di grid, e gatz be di same power. E no mean say if light no dey now, I fit export my light give di grid and light go come on, di grid gatz dey online for di exportation of power to fit happun.

Di solar power sabi pesin tok say, "Na why one of di regulations be say you gatz dey part of one DisCo bicos dat na wia di power go dey exported to."

However, Oga Anomfueme tok say di increase in power fit also no dey noticeable by di general public in terms of more power supply.

E tok say, "Maybe di advantage go dey wit di DisCos bicos di price dem go take buy dis power go dey cheaper. Maybe e go help dem manage dia operations but e still be possibility, e no mean say e go happun dat way."