TRENTON, N.J. — The New Jersey Board of Public Utilities on Wednesday released a proposal for a statewide energy storage program that would provide incentives to residents who install and use home battery systems to support the electric grid.
The NJBPU released a Straw Proposal for Phase 2, Block 1 of the Garden State Energy Storage Program, outlining plans for a “Distributed Storage Capacity Block 1” consisting of approximately 150 megawatts of energy storage statewide.
The proposal includes options for expanding new behind-the-meter residential battery storage in New Jersey.
“The Garden State Energy Storage Program advances Governor Sherrill’s Executive Order No. 2 by growing energy storage deployments in-state to meet growing energy demand while improving affordability and resilience,” said NJBPU President Ben Hertz-Shargel. “Public input is essential as we plan for New Jersey’s energy future, and this Straw Proposal gives residents and stakeholders an opportunity to help shape that work.”
The proposal is part of New Jersey’s effort to reach 2,000 megawatts of energy storage by 2030.
Residential batteries can provide backup power during outages while also supporting the electric grid during periods of high demand or stress, according to the NJBPU.
Under the proposal, residents who choose to participate through their electric utilities could receive performance-based payments for making their battery capacity available when additional grid support is needed.
Once enrolled and their battery is operational, participating residents would be eligible for annual incentive payments over a 10-year period. Payments would be based on battery performance during “dispatch events,” such as heat waves or cold snaps when the electric grid needs additional support.
New Jersey’s four electric distribution companies — Atlantic City Electric, Jersey Central Power & Light, PSE&G and Rockland Electric — would administer enrollment, coordinate battery dispatches, track performance and data, and issue verified incentive payments under NJBPU oversight.
According to the board, the incentives would compensate customers for providing transmission, distribution and capacity services to the grid, with the goal of reducing utility costs and New Jersey’s exposure to PJM capacity prices.
The proposal also complements the NJBPU’s virtual power plant and grid modernization efforts. The first stage of those efforts is expected to go before the board in October.
Board staff also anticipate using the proposal as a framework for additional energy storage initiatives, including behind-the-meter storage at commercial and industrial critical facilities and a separate program for distribution-connected, front-of-the-meter storage.
The NJBPU will hold a virtual stakeholder meeting on the proposal from 10 a.m. to noon Sept. 3. Residents and other interested parties can register online to participate.
Written comments will also be accepted through 5 p.m. Sept. 10. Instructions for submitting comments are included in the NJBPU’s public notice.
