Mahama announces net metering bill to allow businesses to sell excess solar power to national grid

President John Dramani Mahama has announced plans to introduce a net metering bill that will allow companies generating electricity from solar plants to feed excess power into the national grid and receive payment for it.

Speaking at the commissioning of the Northshore Apparel Industrial Park in Savelugu on Friday, August 28, President Mahama said the government will work with Parliament to establish the legal framework for businesses like Northshore Apparel, which have invested in solar power generation, to supply surplus electricity to the national grid.

“We’re going to get Parliament to pass a net metering bill, and that will allow companies like North Shore that have their solar plants to net meter with the electricity company or NEDCO,” President Mahama said.

How the Proposed System Will Work

Under the proposed arrangement, a specialised meter would be installed to track both the electricity supplied to and consumed by the company from the grid. President Mahama explained that if a company produces more electricity than it needs from its solar installation, the surplus will be integrated into the national grid. “There’ll be a meter that can calculate how much they are owed,” he said.

“If they are owed, it means NEDCO has to pay them,” the President explained. Conversely, where a company consumes more electricity from the grid than it supplies, the company would be required to pay the difference.

Policy Background: Ghana’s Net Metering Journey

The President’s announcement builds on existing government efforts to expand renewable energy adoption nationwide. Ghana’s Ministry of Energy and Green Transition has been preparing a national net-metering framework to encourage rooftop solar adoption and private-sector investment in distributed solar generation.

In December 2025, the Ministry launched a net-metering web application portal to enable nationwide tracking of renewable energy installations under the Scaling-Up Renewable Energy Programme (SREP). The programme aims to deploy 12,000 net-metered solar photovoltaic systems across public facilities, SMEs, and households.

Under the net metering billing mechanism, renewable energy facility owners are credited for electricity they supply to the distribution utility’s network, and this credit is set off against electricity purchased from the utility. The government targets increasing non-hydro renewable capacity to 7 percent by 2027 and achieving a 10 percent renewable energy mix by 2030.

Solar Investment at Northshore Apparel

The net metering announcement comes as Northshore Apparel, the newly commissioned factory in Savelugu, has already incorporated solar power into its operations. The facility features a 500-kilowatt peak solar power system, alongside an on-site clinic, crèche, disability-friendly washrooms, and a 600,000-litre underground mechanised water facility.

President Mahama noted that the North region holds several comparative advantages for investors, including abundant sunshine for solar power. He said the net metering framework would encourage more businesses to invest in renewable energy generation, helping reduce electricity costs while supporting Ghana’s green transition goals.

Broader Industrial Vision

The net metering announcement was part of President Mahama’s broader vision for industrial transformation in Northern Ghana. The Northshore facility, built on land that was previously an abandoned latrine pit, is described as the “anchor tenant” of a planned industrial hub expected to employ at least 30,000 youth at full strength. The factory currently employs approximately 2,300 people, with about 80 percent being young women who would otherwise have migrated south in search of work.

The President said the facility exemplifies government’s 24-hour economy initiative, noting that Northshore will run several shifts to create more jobs for young people. He also mentioned that an ongoing expansion of the Eastern Corridor road, expected to be completed by the first quarter of next year, would further cut delivery times for goods moving from the North to Tema.