New Jersey Senate Bill S225

New Jersey 2024-2025 Regular Session

• Introduced: 1/9/24
• Refer: 1/9/24
• Report Pass: 2/5/24
• Refer: 2/5/24

Caption

Establishes incentive program for installation of energy storage systems.

Impact

The bill significantly impacts state law by establishing monetary incentives for installing energy storage systems. It introduces both upfront and performance incentives, aiming to minimize the financial barriers that prevent customers from adopting such technologies. Specific provisions ensure that a portion of these incentives are targeted toward low-to-moderate income households and communities that face environmental burdens. Enhanced energy storage infrastructure is expected to improve grid stability, reduce reliance on centralized power plants, and facilitate the integration of renewable energy sources.

Summary

Senate Bill 225 establishes a pilot program designed to incentivize the installation of both customer-sited and front-of-the-meter energy storage systems in New Jersey. Aimed at enhancing the state's energy independence and security, the bill mandates the Board of Public Utilities to publish incentive levels and an application process for participants. The proposed program is aligned with the goal of achieving two gigawatts of energy storage capacity by 2030, reflecting the state’s commitment to renewable energy sources and grid resilience.

Contention

Points of contention may arise regarding the prioritization of incentives, particularly for low-to-moderate income communities versus other applicants. Critics may argue that while the bill aims to promote equity, the distribution of incentives could still favor larger entities or those with better access to capital. Furthermore, the program’s long-term viability post-pilot will depend on the findings reported back to the legislature, potentially impacting future funding and support for energy storage technologies.