On March 24, Governor Mikie Sherrill signed legislation relaxing certain requirements for transmission-scale energy storage procurement in an effort to spur deployment of private capital in the industry, ensure grid flexibility in the State, and lower utility bills for residents.
Assembly Bill 4529/Senate Bill 3819[1] extends the deadline for the New Jersey Board of Public Utilities (NJBPU) to approve incentive awards for eligible energy storage projects under the Garden State Energy Storage Program (GSESP) for Phase 1, Tranche 2 from June 30, 2026 to December 31, 2026. The law also relaxes certain requirements for incentive award applicants under Tranches 1 and 2 of the GSESP.
This announcement comes on the heels of major action by the NJBPU to advance Governor Sherrill’s clean energy initiative, which on March 5, 2026, approved incentives for three large battery storage projects totaling 355 megawatts (MW) of capacity under Phase 1, Tranche 1 of the GSESP. At the same time, the NJBPU also launched Phase 1, Tranche 2 of the GSESP, opening a second competitive solicitation for 645 MW of additional storage capacity with the goal of approving incentive awards for 1,000 MW of installed capacity. Tranche 2 is open to stand-alone storage projects and solar-plus-storage projects that do not qualify for the NJBPU’s Successor Solar Initiative Program.
The GSESP was created by the NJBPU in June 2025 to address a gap in the State’s energy market and facilitate its green energy transition by establishing “a critical foundation for a long-term energy storage effort in the State.”[2] Consisting of two primary phases and an optional third phase, the GSESP is designed to be a “central part of the Board’s efforts to rapidly promote the entry of new capacity online to maintain reliability and limit rate increases in the face of soaring demand for electricity”.[3] Further, the GSESP is aimed at promoting “deployment of low-cost private capital into New Jersey storage projects by establishing a stable market structure.” [4] NJBPU is required by statute to bring 2,000 MW of energy storage online by 2030.
Eligible applicants will receive incentive awards in the form of 15-year fixed annual rate per MW per year incentives for Phase 1 applicants, and both fixed and performance incentives for Phase 2 applicants. The GSESP provides private capital a formative opportunity to enter New Jersy’s growing energy transition market.
[1] Available at: https://njleg.gov/bill-search/2026/A4529.
[2] In the Matter of the Garden State Energy Storage Program Pursuant to P.L. 2018, C.17, Docket No. Q022080540 (Jun. 18, 2025), The Garden State Energy Storage Program – Order Launching Program.
[3] Id. at p. 2.
[4] Id. at pp. 8-9.