New Jersey Storage Incentive: What Is Proposed and What Is Not (October 2026)

Proposed, not final

Status on October 19, 2026: proposed. The New Jersey Board of Public Utilities (BPU) has released a Straw Proposal for Phase 2, Block 1 of the Garden State Energy Storage Program. A straw proposal is a draft for public comment. No final order has been issued, and no incentive rates have been set. Nothing in this note is an incentive anyone can apply for today.

What the straw proposal covers

From the BPU's release of August 19, 2026:

• About 150 MW of behind-the-meter residential energy storage statewide.
• Annual incentive payments over a 10-year term, based on performance.
• Administered by the four electric distribution companies: Atlantic City Electric, JCP&L, PSE&G and Rockland Electric.
• Public comments were due by 5 p.m. ET on September 10, 2026.

The program serves the state's goal of 2,000 MW of energy storage by 2030.

What it does not cover

• Commercial and industrial storage. BPU staff said they anticipate the straw proposal serving as a framework for commercial and industrial-scale behind-the-meter storage at critical facilities. That is an expectation, not a program. There is no C&I proposal, eligibility rule or rate.
• Rates. No payment rates are set for any customer class.
• Timing. The BPU has not published a date for a final order.

Who should care

Owners of commercial, multifamily and critical-facility properties in New Jersey planning storage for 2027. If the residential design carries over to C&I, the value will rest on measured performance during called events, not on battery size.

What to prepare now

• Twelve months of interval data or bills for each meter, including the demand charges.
• An electrical review: switchgear, service capacity and where a battery could sit.
• A view of the case without any state incentive. A project that only works with an unannounced rate is not ready to commit to.
• A watch on the BPU docket for the final order and any C&I proposal.

NOI does not market projects in New Jersey today; we evaluate sites there case by case. See our partner network, and our New Jersey solar program summary.

Source: New Jersey Board of Public Utilities, press release of August 19, 2026. We checked the BPU newsroom on October 19, 2026 and found no final Phase 2 order through its latest release of October 14, 2026. Confirm the current status with the BPU before acting.

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