While energy storage systems are beneficial to all consumers, there are currently no mechanisms in place to adequately compensate distribution-scale owners for the costs of their systems and the benefits they provide. The proposed incentives will make the adoption of energy storage systems more economically favorable.

“This program will ideally offset the costs of building energy storage systems and encourage others to take on this initiative,” said Senator Smith (Middlesex/Somerset). “Not only will this save current and potential owners money, but the overall increase in storage will also lower energy costs for all consumers over time.”

Under the bill, S-631, systems owned by both customers and public utilities that meet the BPU’s performance requirements will be eligible for incentives that can cover up to 40% of each project’s total cost. The BPU is required to reserve at least 25% of these incentives for those that face greater economic hurdles to adopting energy storage systems.

“As New Jersey moves towards our goal of a sustainable energy future, we will need more energy storage systems to handle the load,” said Senator Greenstein (Middlesex/Mercer). “This program will help create an easy and safe transition from the old energy grid to a more dynamic system.”

Expanding storage reduces the fluctuation of electricity supplied from renewable energy sources, which will help minimize our reliance on fossil fuel power plants during periods of peak energy demand and in turn drive down electricity prices. These systems also facilitate greater energy independence and energy security.

Finally, this program would help New Jersey achieve our energy storage goals outlined in the 2018 Clean Energy Act, which aims to have 2,000 megawatts of storage capacity on the grid by 2030.