Energy Storage Incentive Program (NJSIP)

Energy Storage Incentive Program (NJSIP) is sponsored by New Jersey Board of Public Utilities (BPU). This program will provide financial support for standalone battery storage and solar-plus-storage projects.

&nbsp&nbsp&nbsp Governor Mikie Sherrill • Lt. Governor Dr. Dale G. Caldwell Utility Hearing Public Notices N.

J. Takes Charge: Launches Landmark Energy Storage Program To Lower Long-Term Costs and Strengthen Power Grid Contact: Alonza Robertson State Initiative Aims to Address Rising Electricity Costs While Building More Reliable, Clean Energy Infrastructure TRENTON N. J.

– June 18, 2025 – The New Jersey Board of Public Utilities (NJBPU) today approved Phase 1 of the Garden State Energy Storage Program (GSESP). This transformative effort, formerly known as the New Jersey Storage Incentive Program (NJ SIP), is designed to significantly expand the amount of grid-scale energy storage capacity in New Jersey.

This ambitious program directly addresses demand growth and limited supply , the root causes of recent rate increases, while simultaneously building a major part of the state’s clean energy future. "This is a pivotal moment for New Jersey's energy landscape,” said NJBPU President Christine Guhl-Sadovy .

“The Garden State Energy Storage Program is part of our commitment to addressing the causes of rising electric rates, ultimately putting more money back into the pockets of New Jersey families. This isn’t just about meeting our climate goals, it’s about making sure every family can afford to keep their lights on and their home comfortable," she said .

GSESP is a multi-phase program designed to deploy 2,000 megawatts (MW) of energy storage by 2030, a mandate established by the Clean Energy Act of 2018. Energy storage systems are crucial for integrating intermittent renewable energy sources like solar, strengthening grid resilience against outages, and reducing carbon emissions.

The program is the culmination of two years of extensive stakeholder engagement, incorporating valuable feedback from a diverse range of industry experts, environmental groups, and public representatives. Energy storage systems can be built and connected to the power grid faster than any other type of power plant that can turn on when needed.

This speed is critical right now because supply chain problems mean New Jersey can't build traditional power plants (like natural gas or nuclear plants) within five years. GSESP rapidly addresses the lack of capacity—one of the root causes of New Jersey’s energy conundrum and reduces long-term electricity costs through improved system efficiency.

Phase 1 of the program will help New Jersey quickly add these new energy storage systems to the grid. This extra capacity will help bring down the high costs that have been driving up electricity bills, thus supporting state efforts to keep rates affordable for consumers.

By bringing more energy storage online, especially during times of high electricity demand, GSESP will help increase the overall supply of power that can be dispatched when needed. This increased supply is expected to mitigate wholesale electricity costs, which are a significant component of electric bills.

Moreover, the NJBPU plans to use existing funds for Phase 1 of the program without increasing rates for consumers, meaning there will be no new or increased charges added to ratepayers’ current electric bills for this program's initial phase. Specifically, Phase 1 of the initiative will be funded primarily through the New Jersey Clean Energy Program (NJCEP) budget.

"We hear the concerns of New Jersey residents regarding the reliability of our energy infrastructure, and we take that responsibility very seriously," President Guhl-Sadovy said . "The Garden State Energy Storage Program is designed with a clear priority: creating a more reliable and robust grid for the people we serve, ultimately leading to greater cost savings.

By strategically investing in energy storage now, we're building a resilient system that can better withstand both man-made and weather-related disruptions and support the critical integration of more clean energy, which is vital for New Jersey's sustainable future and peace of mind," she said .

Program Benefits: Enhanced Reliability and Long-Term Value GSESP offers multiple benefits designed to provide immediate and long-term value: Grid Modernization: The program aims to add essential capacity to the grid, directly contributing to a more robust and efficient energy infrastructure.

Economic Boost: GSESP is expected to provide a boost to New Jersey's economy by attracting investment in new infrastructure, modernizing the state's grid, improving reliability, reducing environmental impact, enhancing public health, and creating new jobs.

Enhanced Reliability and Resilience: By bringing more dispatchable capacity online quickly, the program strengthens the electric grid, making it more robust against disruptions and extreme weather events. Environmental Impact and Public Health: Expanding energy storage directly contributes to reducing greenhouse gas emissions, improving air quality, and enhancing public health outcomes for all New Jersey communities.

Achieving State Mandates: GSESP serves as a key focal point of the Murphy Administration’s strategy to implement the Clean Energy Act's directive to deploy 2,000 MW of energy storage by 2030. Ratepayer Benefits: The NJBPU will fund Phase 1 using existing funds without raising rates, meaning no new charges will appear on electric bills for this initial phase.

Over time, these energy storage projects are expected to reduce electricity costs by providing power during peak demand periods when prices are typically high. The program also includes incentives for projects that provide benefits to overburdened communities and encourages redevelopment of brownfields, aligning with the state’s equity and environmental justice priorities. GSESP is a comprehensive initiative with multiple phases.

This program will include both large-scale grid infrastructure and smaller, localized energy storage solutions . Phase 1: Transmission-Scale Energy Storage will strategically procure at least 1,000 MW of larger projects directly connected to the main power grid through competitive bidding. Tranche 1: The first solicitation aims to award 350-750 MW.

The pre-qualification process starts on June 25, 2025, with a final bid submission deadline of August 20, 2025. The NJBPU expects to issue awards for Tranche 1 by October 31, 2025. Tranche 2: A second solicitation will be prepared for the first half of 2026 to secure the remaining capacity needed to reach the 1,000 MW target for Phase 1.

Phase 2: Distributed Energy Storage is expected to launch in 2026. This phase will focus on incentives for smaller energy storage systems connected to local distribution grids, including both "in front of the meter" (grid-connected) and "behind the meter" (residential or commercial) systems. These incentives will be both fixed and performance based.

A potential Phase 3 may introduce a performance-based incentive for transmission-scale systems, but this phase is currently being evaluated and is deferred. To ensure responsible and effective deployment that maximizes value, GSESP includes robust safeguards and clear project development milestones.

For comprehensive information on the Garden State Energy Storage Program, including eligibility criteria, application processes, and program details, please visit the New Jersey Clean Energy Program website at www. njcleanenergy. com/storage .

Application materials will be posted by June 25. For any program-related questions, you can also reach out to energy. storage@njbpu.

nj. gov . New Jersey Board of Public Utilities NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers.

Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.

nj. gov/bpu .

About New Jersey’s Clean Energy Program (NJCEP) 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 www. NJCleanEnergy. com .

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