• Nigeria's new Electricity Act is creating opportunities for tenants, landlords, and small communities to explore mini-solar power instead of relying solely on the national grid
• You don't need to own an estate to benefit, small apartment clusters can legally explore shared solar systems under the right conditions
• Before spending money, understand the legal, technical, and landlord requirements that could save you from costly mistakes

The new electricity law now lets you sell electricity to your neighbours, but most Nigerians have no idea.

Every single morning in this country, someone wakes up, counts the hours of light they got the night before, and quietly calculates how much fuel the generator drank while they were sleeping. That N5,000 token, noise, and smoke never ends.

But here's what they didn't tell you: there is a law sitting right on the table that changes everything, and if you move fast, you could stop paying for power, and start collecting it from others.

The law that rewrote the rules

In June 2023, Nigeria passed the Electricity Act, 2023. It replaced a law that had been running the sector since 2005, back when most of us were in primary school. The Act liberalised Nigeria's electricity generation, transmission, and distribution at the national level, empowering states, companies, and individuals to generate, transmit, and distribute electricity.

Then, in December 2023, the Nigerian Electricity Regulatory Commission (NERC) dropped the Mini-Grid Regulations, 2023 to make that power concrete. The Mini-Grid Regulations, 2023 replaced the older 2016 regulations and opened the door wider than it has ever been for small players to enter the electricity game.

And in April 2026, they went even further with the Mini-Grid Regulations 2026, tightening, clarifying, and making the pathway more straightforward than ever before.

What is a mini-grid?

This is the part that will make your brain move. A mini-grid, as defined by the regulation, is any electricity supply system with its own generation capacity that supplies electricity to more than one customer and can operate in isolation or be connected to a distribution licensee's network.

In plain English: put up some solar panels, connect them to a shared inverter system, and distribute power to the flats in your compound or your street cluster. That's a mini-grid. It doesn't have to be some huge infrastructure project.

It can literally be your rooftop.

The licensing hack nobody is talking about

Mini-grid developers operating isolated systems with a capacity below 100kW are exempt from licensing but must simply register with NERC. No full licence, no years of paperwork, just registration.

And for context, 100kW is genuinely a lot of power. A well-designed system of that size can comfortably serve an entire apartment complex or a street of small businesses. Most apartment blocks would need far less than that to cover basic daily needs.

Under the newer 2026 rules, mini-grids below 100kW are required to be registered, while those above 100kW must obtain a permit from the commission, and NERC says permits will be processed within 30 business days.

Compare that to the years people spend trying to get anything done in the formal energy sector.

What does "register" mean for you?

The registration path is specifically designed for small operators. You're not going up against Ikeja Electric or Eko Electricity. You're operating an isolated, off-grid system, your own closed loop, powering a defined group of customers in your immediate community.

You still need to play by the rules, though. You cannot just wire up panels and start charging your neighbours without documentation.

All operators, whether licensed or exempted, must comply with applicable technical, safety, and environmental standards. Safety is the foundation.

The practical steps, exact registration forms, fees, and current NERC processing requirements are available on the official website of NERC.

What will it cost you?

This is the question you came here for. Let's get real.

A 1kVA to 2kVA starter setup in Nigeria currently runs between N800,000 and N1,800,000, and typically replaces a small petrol generator completely. That's the entry point, enough to power a few apartments' basic needs: lights, fans, phone charging, a small TV.

Want to serve more people with more comfort? A 3kVA to 5kVA medium home setup, with 6 to 10 high-capacity solar panels and a 5kWh to 10kWh lithium battery pack, runs between N2,000,000 and N4,500,000.

That sounds like a lot until you do the maths on what people are spending on fuel every single month.

Business model your landlord doesn't want you to discover

Here's the play that changes lives: you put up the system, you charge the other tenants a fixed monthly fee for clean power. Everyone pays less than they currently spend on fuel. You recover your capital. You profit.

The typical payback period for solar panels in Nigeria is 3 to 5 years, after which the system keeps producing power essentially for free for another 20+ years.

Think about that. You spend N2 to 4 million upfront, collect monthly from 6–10 flats, recover your money within 4 years, and then you're printing free electricity for two decades. This is a real asset.

The key legal requirement you must respect: the tariff (what you charge customers) must be established through a proper methodology, and in many cases must be agreed upon by all involved parties. You cannot charge what you like without documentation. Keep everything written.

The states are getting into it

The opportunity isn't just federal. As of January 2026, NERC had completely transferred regulatory oversight to about thirteen states, including Lagos, Oyo, Enugu, Edo, Ogun, and Anambra, among others.

This matters for you because it means your state government now has its own power to license and regulate mini-grids.

Who can do this?

Not everyone. Let's be honest about who this opportunity is built for right now.

This is for the compound owner or landlord with rooftop access and willing tenants. It's for the cooperative in an estate that wants to pool money and eliminate generator costs permanently. It's for the entrepreneur with capital who sees an underserved cluster of shops or flats and wants to own the local power infrastructure.

Between April 2024 and Q3 2025, 85 mini-grid licences and permits were issued by NERC, proof that the market is moving. The question is whether you'll be in the next wave or watching from the sideline.

If you're a renter with no control over your building's rooftop, this particular play isn't yours yet. But knowing the law exists means you can have a real conversation with your landlord, or find the right opportunity when you eventually own property.

5-step action plan to get started

1. Do a load audit: Count every appliance in the apartments you want to power, add up the wattage, that tells you what system size you need. Most solar vendors will do this calculation free.

2. Get at least 3 quotes: Call installers, compare. Prices for the same system can vary by hundreds of thousands of naira.

3. Structure your agreement with tenants first: Before you spend a naira, get written agreement from the tenants or compound residents about what monthly amount they'll pay. Without this, you're risking your capital.

4. Register with NERC or your State Electricity Board: Go to their official website or contact your state's electricity authority. Get your registration done properly. It protects you legally.

5. Install with a certified technician: Do not cut corners on installation. A bad wiring job is a fire hazard, and an uninsured one will finish you financially.

The biggest risk isn't the technology or even the law. It's NEPA eventually extending the national grid to your area after you've already invested.

The good news is that the newer regulations have started addressing this. Under the Mini-Grid Regulations 2026, distribution companies must provide 12 months' notice before grid extension and there is a clear, structured compensation framework in the event of grid arrival.

You are not completely defenceless. But you should factor this risk into your decision.

NEPA has had a monopoly on your suffering for decades. They've charged you for power that didn't come, disconnected you for bills you disputed, and left your generator running dry on nights you couldn't afford fuel.

The Electricity Act 2023 is the first serious legal tool that allows regular Nigerians to route around that system, not illegally or informally, but through a proper, documented, registered framework.

Investing in energy transition measures will unlock new green jobs in the millions and unleash the massive localisation of supply chains and technologies.

The hustle is legal. The technology is available. The framework exists.

The only question is whether you'll move, or wait for someone else in your compound to move first.

11 most popular solar brands in Nigeria, why Nigerians trust them

Earlier, TheRadar reported that the rising fuel costs and unstable electricity supply are driving more Nigerians toward solar energy solutions.

Choosing the right brand could be one of the smartest investments Nigerians make for their homes, businesses, and digital hustles

TheRadar has rounded up the 11 most popular solar brands in Nigeria right now, brands that consistently show up in homes, offices, shops, estates, and businesses across the country.