New Jersey proposes revised grid battery storage incentive rules and holds back rules for distributed storage
The notice describes how security, delay damages and incentive payments would work for large grid-scale storage projects, while rules for distributed storage await alignment with the virtual power plant program.
On September 8, 2026, the New Jersey Board of Public Utilities (“BPU” or the “Board”) published a Notice of Proposed Substantial Changes upon Adoption to its proposed Garden State Energy Storage Program (“GSESP”) rules, N.J.A.C. 14:8-14, at 58 N.J.R. 1981(a) (Docket No. QX25050283). The notice revises the transmission-scale (“Phase 1”) provisions first proposed on August 4, 2025, at 57 N.J.R. 1651(a), and proposes not to adopt the rules for the distributed storage (“Phase 2”) segment at this time. Comments are due by 5:00 p.m. on November 7, 2026.
58 N.J.R. 1981(a); N.J.A.C. 14:8-14; Docket QX25050283; P.L. 2025, c.136