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The basics:

• New law expands eligibility for transmission-scale energy storage incentives
• Garden State Energy Storage Program deadline extended to Dec. 31, 2026
• Measure could add up to 500 MW of energy capacity, per BPU estimates
• Aims to lower costs, reduce emissions and improve grid reliability

Continuing a series of early energy-related actions, Gov. Mikie Sherrill signed Assembly Bill 4529/Senate Bill 3819 into law March 24. The measure aims to expand energy storage and strengthen grid reliability.

The new law allows more transmission-scale energy storage projects to qualify for incentives under the state’s Garden State Energy Storage Program. It relaxes existing maturity requirements that had limited participation in the Board of Public Utilities GSESP incentive initiative.

It also extends the program’s award deadline from June 30, 2026, to Dec. 31, 2026. The move is expected to increase competition as well as help reduce costs.

The legislation aims to address a central challenge of renewable energy – intermittency. It enables excess power generated from sources such as solar and wind to be stored and deployed when demand is highest. NJBPU estimates that this modification could bring an additional 500 megawatts of power forward.

The measure builds on a series of steps Sherrill has taken early in her administration to tackle rising energy costs and also boost in-state energy supply. EO Nos. 1 and 2 focused on:

• Freezing utility rate hikes and declaring a state of emergency to accelerate energy development
• Approval of six new energy projects
• Launch of the next phase of the GSESP
• Opening new solar application windows

The efforts reflect key priorities from her campaign.

Reducing costs and emissions

“I’m proud to take action today to accelerate progress on our clean energy goals and expand energy storage in New Jersey,” Sherrill said Tuesday. “By strengthening the Garden State Energy Storage Program, we’re cutting through unnecessary delays and opening the door to more competitive, cost-effective storage projects that will help us meet our needs and build a cleaner, more reliable grid.

“I’m grateful to our partners in the Legislature for acting quickly to deliver this win for New Jersey’s energy future.”

Bill sponsors said the new law will help stabilize the grid while reducing costs and emissions.

“By increasing our capacity for clean energy storage, we can work to ease our dependency on fossil fuel-burning plants,” said Sen. Bob Smith, D-17th District. Smith also chairs the Senate Environment and Energy Committee. “When there’s high demand, and not enough energy from solar or wind to go around, we end up turning to fossil fuels, ultimately harming our environment and driving up utility prices.

“Taking initiative to expand our energy storage capacity ensures that we can consistently rely on clean energy to power the grid,” he said.

This is a winning formula.
— State Sen. John Burzichelli

“Expanding battery storage is one of the more effective ways to increase New Jersey’s electricity capacity and to help lower prices for ratepayers,” said Sen. John Burzichelli, D-3rd District. “This is a winning formula. Relaxing the requirements for storage facilities to connect to the grid is a productive step to increase our supply of renewable energy in the midst of a climate crisis while simultaneously tackling rising utility bills.”

Industry support

Industry groups also applauded the move, including the Solar Energy Industries Association.

“Gov. Sherrill was elected on a promise to lower energy prices in New Jersey, and this new law to strengthen energy storage deployment will help do just that,” Sara Birmingham, vice president of state affairs of the SEIA. “The legislation will expand the number of transmission-scale storage projects eligible for state incentives, strengthening the resilience of our grid and insulating ratepayers from volatile gas prices.

“Energy storage is central to lowering electricity prices and meeting surging energy demand in New Jersey. Storage is fast to build and can send low-cost solar power to the grid when it’s needed most, reducing the state’s dependence on expensive gas peaker plants.

“The solar and storage industry thanks Gov. Sherrill, Assemblymember DeAngelo, Sen. Smith and Sen. Burzichelli for their leadership to secure New Jersey’s energy future. Storage companies are ready to deliver affordable, reliable power to the people of New Jersey.”