New Jersey proposes Garden State Energy Storage Program

The New Jersey Board of Public Utilities (NJBPU) has proposed new rules to launch the Garden State Energy Storage Program (GSESP) to accelerate deployment of energy storage in New Jersey.

• Program launch and targets: The proposal establishes the GSESP to meet the Clean Energy Act mandate to deploy 2,000 MW of energy storage by 2030, with Phase 1 (transmission fixed incentive) launching in 2025 and Phase 2 (distributed fixed and performance) anticipated in 2026; Phase 1 targets an initial State fiscal year transmission target of 350–750 MW and seeks to procure at least 1,000 MW of transmission-scale storage over multiple SFYs, offering fixed incentive payments paid over 10–20 years.
• Key program mechanics, fees, and requirements: Competitive solicitations will set fixed incentives for transmission projects; non-refundable application deposit of $200 per MW; Board may require pre-development security up to $100,000 per MW for transmission projects; distributed block incentives target combined incentive levels of $300/kWh (small), $200/kWh (medium), $150/kWh (large) with OBC adders of $100/$67/$50 per kWh respectively; distributed performance incentives administered by EDCs (proposal text references an annual per-customer payment shown as “$ $ 123,45$ per year” in the draft) and reporting, COD, interconnection, and safety/certification (UL 9540/9540A, UL 1741 SB, IEEE 1547) requirements are specified. Comment deadline: 5:00 P.M. ET on October 3, 2025.