NJ Energy Storage Incentive Program Straw Proposal Released

On Nov 13, 2024

The New Jersey Board of Public Utilities (NJBPU) has released the 2024 New Jersey Energy Storage Incentive Program (“NJ SIP”) straw proposal and announced the date for a virtual stakeholder meeting to receive feedback. The Energy Storage Incentive Program, as described in the straw proposal, is expected to build a foundation for a long-term, cost-effective energy storage effort in the state.

“Creating the framework for energy storage is one of the most significant actions we will take to create a more resilient electric grid in New Jersey,” said Christine Guhl-Sadovy, NJBPU president. “We look forward to getting feedback on this proposal.”

New Jersey has a statutory mandate to achieve 600 megawatts (“MW”) of installed energy storage by 2021, growing to 2,000 MW by 2030.

In the NJSIP Straw Proposal, NJBPU staff propose to create two energy storage segments for Front-of-Meter and Behind-the-Meter energy storage incentives, patterned after the Board’s Successor Solar Incentive (“SuSI”) program.  However, while the SuSI program incentivizes stand-alone solar and grid supply solar-plus-storage projects, this straw proposal will focus on incentivizing stand-alone grid supply energy storage projects as well as solar-plus-storage projects that are ineligible to receive storage incentives from the SuSI program.  Incentives will not be retroactive.  Only energy storage projects placed into service after the date of the Board Order establishing this program will be eligible for incentives.

Along with the straw proposal, the NJBPU provided notice of a virtual stakeholder meeting on November 20, 2024 to present the NJSIP straw proposal and associated draft rules. Registration is required. This 2024 straw proposal builds on the NJBPU’s September 29, 2022 NJSIP straw proposal to reflect stakeholder input solicited by the NJBPU via a Request for Information, which was issued by the NJBPU under Docket Number. QO22080540 on Aug. 8, 2023.

For more information about the NJSIP straw proposal and associated Virtual Stakeholder Meeting Notice, please visit: https://nj.gov/bpu/pdf/publicnotice/Notice-Stakeholder%20Meeting.pdf.

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