New Jersey Senators advance bill to incentivise customer-sited energy storage installations

LinkedIn
Twitter
Reddit
Facebook
Email

Legislation to create an incentive programme for behind-the-meter (BTM) energy storage in New Jersey has been advanced by the US state’s Senate Environment and Energy Committee.  

New Jersey Democrat Senators Bob Smith and Linda Greenstein are the sponsors of Bill S-631, which would create incentives worth up to 40% of the cost of energy storage projects that meet performance requirements set by the regulatory Board of Public Utilities (BPU). 

Announced this week (8 June) as having been advanced by the Senate Committee, the legislation can now go to floor votes in the New Jersey Senate and then the General Assembly before final approval by state Governor Mikie Sherrill.  

“This programme will ideally offset the costs of building energy storage systems and encourage others to take on this initiative. 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,” Smith, who represents the 17th District (Middlesex and Somerset), said.  

This article requires Premium SubscriptionBasic (FREE) Subscription

Try Premium for just $1

  • Full premium access for the first month at only $1
  • Converts to an annual rate after 30 days unless cancelled
  • Cancel anytime during the trial period

Premium Benefits

  • Expert industry analysis and interviews
  • Digital access to PV Tech Power journal
  • Exclusive event discounts

Or get the full Premium subscription right away

Or continue reading this article for free

S-631 includes provisions to reserve at least 25% of the programme’s funding for low-income and disadvantaged customers. 

The bill states, “Energy storage systems, located throughout the electric grid, can facilitate greater energy independence and energy security for the State’s electric customers by providing increased stability of the power supply, smoother integration of renewable energy sources, a reduction in the peak demand placed on centralised power plants, and cost savings.”

The development follows Governor Sherrill’s moves to support the deployment of energy storage from her first day in office, in March, approving 355MW of utility-scale battery energy storage system (BESS) projects and procurement scheme for a further 645MW. Sherrill signed those, alongside moves to expand a state community solar programme to 3GW. New Jersey’s 2,000MW energy storage target has also seen the state create a scheme to support utility-scale BESS facilities, the Garden State Energy Storage Programme (GSESP), which is already underway.

There has also been growing industry interest in leveraging distributed energy resources (DERs) to ease the financial strain that large power consumers place on everyday ratepayers.

Earlier this month, Virtual power plant (VPP) operator and DER platform Voltus and tech giant Google signed a three-year agreement for the PJM region, which sees Voltus aggregating up to 100MW of DERs each year from local businesses and homes into a Google-funded VPP. Voltus will then pay customers who participate in the programme.

On 16 April, developer-operator Lightshift Energy announced a five-project portfolio, with similar goals to S-631, though located across Virgina. Instead of pursuing 200MW-500MW transmission-scale projects that would require years of PJM interconnection studies and millions in upgrade costs, Lightshift is installing smaller batteries, 20MW or less, at existing distribution substations to minimise costs for regular energy consumers.

ESN Premium recently discussed the trend in California, with Arnab Pal, executive director at Deploy Action, a nonprofit trying to accelerate decarbonisation efforts in the state.

The NJBPU also in March, selected developer and IPP Elevate Renewables’ 600MWh BESS for development in Ridgefield, as part of the Garden State Energy Storage Programme (GSESP), phase one of which was approved in June 2025.

The GSESP aims to deploy 2,000MW of energy storage by 2030, following a mandate established by the Clean Energy Act of 2018.

Additional reporting by April Bonner.

26 November 2026
9am GMT / 1pm GST
In this webinar, Florian Didier and Salomé Perperot from Clean Horizon share the approach they use when supporting IPPs through optimiser selection and contract negotiation across Europe. The presentation will be followed by a live Q&A session in which attendees can put their own questions to the speakers. Who should attend: IPPs and developers, asset owners and investors, lenders and financial advisors, and anyone involved in the commercial structuring of battery storage projects.
22 February 2027
InterContinental London - The O2, London, UK
The Future of Energy Storage Starts Here Three days in London where developers, IPPs, investors, utilities and the manufacturers building the technology come to close deals, not swap business cards. If you need to be in the room with the people deploying capital into European storage, this is that room.
20 April 2027
Renaissance Dallas at Plano Legacy West Hotel, Dallas, Texas, Dallas
Policy, Procurement and Power Demand: Defining the Next Chapter for Energy Storage. Two days in Dallas where developers, IPPs, investors, utilities and the manufacturers building the technology come to close deals, not swap business cards. If you need to be in the room with the people deploying capital into US storage, this is that room.

Read Next

November 6, 2026
Renewables developer D. E. Shaw Renewable Investments (DESRI) and Ford Motor Company’s energy storage subsidiary, Ford Energy, will partner to deploy energy storage in the US.
November 6, 2026
Norges Bank Investment Management (NBIM), the asset management unit of the central bank of Norway, has acquired a 10% interest in North American battery storage developer-operator Aypa Power.
November 6, 2026
EnergyAustralia has taken delivery of the final battery storage units for its 50MW/250MWh Hallett BESS in South Australia, as construction continues at the site.
November 5, 2026
US retail giant Walmart has made a strategic investment in home battery storage firm Base Power, while Sunrun has doubled the size of its home battery VPP in Puerto Rico.
November 5, 2026
Democrats scored major victories in the US Midterm elections, taking both the House and Senate and flipping several long-held Republican strongholds, with changes likely to occur in the clean energy sector.