Experts Divided Over NERC’s Net Billing Plan: Nigeria’s Solar Energy Future at a Crossroads
Energy experts are divided over the Nigerian Electricity Regulatory Commission’s (NERC) proposed net billing plan, a regulation that would allow solar power users to sell excess electricity back to the national grid. While some view the initiative as a landmark step for renewable energy adoption and energy security, others caution that Nigeria’s electricity infrastructure may not yet be ready for such a complex framework. The debate underscores the challenges of balancing innovation with practicality in a sector historically plagued by inefficiencies.
Dr. Sam Amadi, former NERC Chairman, warned against rushing the adoption of net billing. Speaking with Nairametrics, he highlighted that fundamental gaps—such as weak regulatory enforcement, inaccurate billing, inadequate metering, and poor customer service—must be addressed before such an initiative can succeed. “Net billing is important for mainstreaming renewable energy, but the sector lacks readiness for its complexity. We must first strengthen the basics,” Amadi emphasized, cautioning that excess solar power could inadvertently drive up electricity costs if not properly managed.
Not all experts share Amadi’s concerns. Renewable energy consultant Dr. Funke Olayemi described the initiative as “a game-changer,” noting that it provides households and businesses an incentive to invest more in solar power. Similarly, energy policy analyst Engr. Charles Ugwu believes the plan could stabilize Nigeria’s grid by feeding excess solar energy during peak sunlight hours, reducing pressure on conventional power plants, and diversifying energy supply. Some analysts also highlight the potential for new financing opportunities, as banks and investors may be more willing to fund solar installations under a monetization framework.
Nigeria’s solar capacity has surged in recent years, driven by government initiatives and private investments. In 2023, solar panel imports exceeded $200 million, and by the first quarter of 2025, imports reached N125.29 billion. With total installed capacity now at 385.7 MW, the rise of decentralized and off-grid energy solutions has become critical, particularly for rural communities. The proposed net billing regulation aims to leverage this growth by enabling “prosumers”—consumers who generate electricity—to connect to the national grid and earn credits for excess energy exported.
Under NERC’s framework, exported solar energy will receive credits through a net metering system, divided into a fixed charge based on the average tariff of grid-connected hydropower plants and a variable charge reflecting interconnection costs. While the plan promises to incentivize renewable energy adoption and expand Nigeria’s energy mix, experts agree that careful implementation is crucial. Success will depend on improving grid infrastructure, regulatory enforcement, and consumer readiness to ensure that this ambitious initiative delivers tangible benefits for both solar producers and the broader electricity market.
source: nairametrics