New Jersey advances residential battery programs for grid support

New Jersey is advancing efforts to integrate residential battery storage into the state's electric grid through virtual power plant (VPP) initiatives. The New Jersey Board of Public Utilities has issued a straw proposal for a two-year, technology-neutral VPP program, which is intended to launch no later than July 1, 2027. This program would allow electric distribution companies to oversee customer-sited batteries and other distributed energy resources to help manage electricity demand during surges.

As part of these modernization efforts, the utility PSE&G has launched the GridSmart Battery Program. This pilot offers residential customers a $5,000 incentive toward the purchase and installation of qualifying home battery systems, with options for up to $25,000 in interest-free, on-bill repayment for remaining costs.

Under the pilot, participating systems may be activated during scheduled events to power homes during peak demand, reducing the total electricity drawn from the utility. The program aims to evaluate how customer-owned storage can support a broader statewide VPP framework. Looking further ahead, officials are considering a market-based, open-access VPP tariff for 2029, which could allow participants to combine local grid service payments with wholesale market revenue from PJM Interconnection.