Electricity (Net Metering) (Amendment) Regulations, 2026 (No. 2)
Net-metering customers will be paid for excess renewable power exported over the year, and can move banked credits between supply points through new virtual net metering.
The Minister of Energy and Power Development, after consulting ZERA, has amended the Electricity (Net Metering) Regulations, 2018.
Net metering is redefined as a system in which a participant uses the distribution licensee's grid as a virtual battery bank: they generate electricity from a renewable energy source, deliver it to the grid, and use it to offset electricity supplied to them during the billing period.
A new section introduces virtual net metering, which lets a point of supply or group of supplies transfer banked credits to another point of supply or group in the same area or a different one. Applications go to the distribution licensee with proof of ownership or lease of the facilities, agreements proving a commercial relationship, and a net metering certificate. The licensee must approve or reject the application, with reasons, within 21 days, and an approved participant bears the cost of integrating with the licensee's control centre.
Participants will be paid for cumulative excess energy exported to the grid at the end of the annual billing cycle, and must pay taxes prescribed by the Minister of Finance and any other levies that apply to those who monetise excess energy. Reconciliation and rollover of excess generation are to be monetised at rates approved by ZERA, in consultation with the Minister, under the tariff code.
The regulations do not set those rates, taxes or levies, and state no commencement date.
What changed
- Net metering is redefined, with the grid acting as a virtual battery bank for renewable generation.
- Virtual net metering lets banked credits move between points of supply in the same or different areas.
- Distribution licensees must decide virtual net metering applications within 21 days.
- Participants are paid for cumulative excess exports at the end of the annual billing cycle, subject to taxes and levies.
- Excess generation is monetised at ZERA-approved rates under the tariff code.
Who this affects
- Homes and businesses with net-metered renewable systems
- Businesses with several supply points
- Electricity distribution licensees
Plain-language summary — not legal advice. Always read the full instrument.