New Jersey is considering a new approach to deploying residential battery storage, with potential implications for the state's distribution utilities and their interconnection processes.
Here’s what we’re watching:
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 proposal directly involves New Jersey's four electric distribution companies: Atlantic City Electric, Jersey Central Power & Light, PSE&G, and Rockland Electric. Under the proposed structure, the utilities would administer enrollment, facilitate interconnection, coordinate battery dispatch, collect and validate performance data, and administer incentive payments.
Residential customers, battery owners, third-party owners and aggregators would also participate in the program.
Block 1 would target up to 150 MW of new residential behind-the-meter battery storage across New Jersey.
Participating systems could receive performance-based incentives of up to $200/kW per year for 10 years, with actual payments tied to verified battery performance during utility-directed dispatch events.
Preliminary parameters allow utilities to call up to 35 dispatch events per year, lasting no more than four hours each. Standard events would require at least two hours' notice, while emergency events could be called with 10 minutes' notice. Events could target PJM coincident peaks as well as distribution-level constraints and other grid stress conditions.
Third-party owners and aggregators could enroll and manage resources through a first-come, first-served process, lead customer acquisition and engagement, and retain no more than 30% of incentive payments.
The straw proposal was issued in August 2026. Written comments were due September 10.
NJBPU Staff expects to bring minimum filing requirements to the Board for consideration in October, followed by implementation petitions from the electric distribution companies in December. Block 1 is currently anticipated to open by July 2027.
The proposed program would apply statewide across the service territories of New Jersey's four electric distribution companies.
For utilities, the significance extends beyond the 150 MW target.
If the proposed incentives accelerate residential battery adoption, New Jersey utilities could see an increase in storage interconnection requests. A first-come, first-served incentive structure could also create periods of concentrated application activity as customers, installers and aggregators seek to secure program capacity.
That makes the connection between program enrollment and distribution grid capacity particularly important. Utilities need to understand not only how many batteries are entering the queue, but where they are connecting and what the local grid can accommodate.
Tools such as envelio's Grid Connection Navigator can help provide prospective applicants with earlier visibility into available grid capacity and support more informed siting before a formal interconnection request reaches the utility. Combined with automated interconnection studies and a continuously updated grid model, this type of approach can help utilities prepare for changing application volumes while maintaining consistent technical evaluation.
The proposal is still under development, and its final requirements may change through stakeholder comments and Board review. We’ll be watching how the program design evolves and, in particular, what it could mean for storage interconnection workflows across New Jersey.