NJBPU Advances Statewide Home Batteries Program with New Garden State Energy Storage Proposal
| For Immediate Release: | Contact: Alonza Robertson |
| Date: 08/19/2026 | 609-913-6237 |
Register for the Stakeholder Meeting to Learn More and Provide Comment
TRENTON, N.J. —August 19, 2026—The New Jersey Board of Public Utilities (NJBPU) has released a Straw Proposal for Phase 2, Block 1 of the Garden State Energy Storage Program (GSESP). The Straw Proposal outlines the proposed design for the GSESP’s “Distributed Storage Capacity Block 1,” which will consist of approximately 150 MW of energy storage statewide and provides options to expand new behind-the-meter residential battery storage for 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 meet its goal of 2,000 MW of energy storage by 2030. Residential battery storage provides backup power for residents during outages as well as supports the electric grid during periods of high demand or grid stress. Home batteries are safe, reliable tools that can store energy for residents’ use on demand.
The Straw Proposal aims to integrate more clean energy resources, lower costs, and improve resilience across New Jersey’s energy landscape. It also complements NJBPU’s broader Virtual Power Plant (VPP) and grid modernization efforts, the first stage of which is expected to go before the Board in October, by encouraging deployment of residential batteries that can be measured, verified, and dispatched during periods of grid need.
The Straw Proposal lays the foundation for technologies that will empower residents who choose to opt in to the program through New Jersey’s electric utilities to receive compensation through a performance-based incentive structure. Once a resident enrolls and their battery is operational, they would be eligible to receive annual incentive payments over a 10-year term based on performance during “dispatch events” when the grid needs additional support, like heatwaves or cold snaps. New Jersey’s four Electric Distribution Companies (EDCs) – Atlantic City Electric, Jersey Central Power & Light, PSE&G, and Rockland Electric – would administer residents’ battery enrollment, coordinate dispatch, track performance, monitor data, and issue verified incentive payments to residents under Board oversight.
Crucially, the customer incentive under the Straw Proposal represents compensation for providing key transmission, distribution and capacity grid services, which will reduce utility cost to serve customers and reduce New Jersey’s exposure to PJM capacity prices.
Board Staff also anticipate the Straw Proposal serving as a framework for subsequent near-term storage deployment opportunities that would provide compensation for commercial and industrial-scale behind-the-meter storage at critical facilities as well as a separate distribution-connected front-of-the-meter storage initiative.
The public is invited to participate in a virtual stakeholder meeting to discuss the Distributed Storage Straw Proposal on September 3, 2026, from 10 a.m. to 12 p.m. ET. Interested parties can register for the meeting here.
If you are unable to attend the stakeholder meeting, you can still comment on the Straw Proposal. The deadline for written comments is 5 p.m. ET on September 10, 2026. Instructions for commenting can be found in the Public Notice.
About New Jersey’s Clean Energy Program (NJCEP)
The NJCEP, established on January 22, 2003, in accordance with the Electric Discount and Energy Competition Act (EDECA), provides financial and other incentives to the State's residential customers, businesses and schools that install high-efficiency or renewable energy technologies, thereby reducing energy usage, lowering customers' energy bills and reducing environmental impacts. The program is authorized and overseen by the New Jersey Board of Public Utilities (NJBPU), and its website is https://cleanenergy.nj.gov/.
About the New Jersey Board of Public Utilities (NJBPU)
The NJBPU is a state agency with regulatory authority over utilities, including natural gas, electricity, water, telecommunications, and cable television. The Board ensures safe, adequate, and proper utility services at reasonable rates for New Jersey customers. Additionally, the Board is responsible for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit www.nj.gov/bpu.
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