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.
Energy storage provisions added and modified to support deployment, utilities required to install an energy storage system, Public Utilities Commission required to order the installation of energy storage systems, public utilities required to file a plan to install energy storage systems, incentive program established, and money appropriated.
Establishes Office of Clean Energy Equity in BPU; directs establishment of certain clean energy, energy efficiency, and energy storage programs for overburdened communities; makes change to community solar program.
Establishes Office of Clean Energy Equity in BPU; directs establishment of certain clean energy, energy efficiency, and energy storage programs for overburdened communities; makes change to community solar program.
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Requires electric public utilities to implement certain improvements to interconnection process for certain grid supply solar facilities and energy storage facilities.
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