BPU OKs initiatives to expand clean energy through solar and battery storage

The Board of Public Utilities approved several initiatives to expand solar and battery storage power that included a 3 GW expansion of the state’s Community Solar Energy Program. These items were OK’d in response to the executive orders issued by Gov. Mikie Sherrill the day she was inaugurated to address New Jersey’s energy cost crisis.

Specifically, the BPU:

• Awarded three projects under the Garden State Energy Storage Program (GSESP) for transmission-level battery storage
• Opened the second tranche of the GSESP to allow for additional transmission-level battery storage
• Awarded three of 18 projects from the third solicitation of the competitive solar incentive (CSI) program
• Opened the fourth solicitation of the CSI program
• Opened the Community Solar Program to 3,000 MW of new capacity

In a statement, Gov. Mikie Sherrill said, “When I signed Executive Order No. 2, I made a commitment to act with urgency and yesterday’s actions by the NJBPU deliver on that promise. States that invest in energy infrastructure today will have lower costs and greater reliability tomorrow — and New Jersey is going to lead the way. By investing in battery storage, solar, and grid modernization, we’re building an energy system that is ready for the future, and more affordable and reliable for New Jersey families and businesses.”   

Tranche 2 of the GSESP targets 645 MW of transmission-scale energy storage (defined as at least five MW AC interconnected with PJM), either as “stand-alone” facilities or paired with new or existing Class I renewable projects. The incentive remains fixed and will be paid out over a 15-year term.

Key dates are as follows: June 10: Pre-qualification materials due; Aug. 7: Final submissions due; Oct. 28: Expected board decision

Awards will be granted to the lowest-cost projects in price-ranked order, subject to community benefit and project maturity considerations, until the 645 MW installed capacity target is met. Incentives will be reported as the price per MW of effective nameplate capacity per year.

The fourth CSI solicitation introduces Tranche 1A, for Grid Supply greater than or equal to 20 MW, while Tranche 1 covers Grid Supply less than 20 MW. The solicitation seeks 300 MW of generation plus 16 MWh of energy storage paired with solar generation.

The BPU board will continue to impose confidential price caps on all applications. The pre-qualification window opens March 11; the solicitation closes April 24. The board anticipates issuing awards, if any, by June 2026

Pursuant to P.L. 2025, c. 135 ( an act concerning solar energy that amended a previous act in 2018) that directed the board to open registration for 3,000 MW of Community Solar and Sherrill’s second executive order, which required that opening within 45 days of its signature, the BPU announced the opening of a 3,000 MW solicitation effective March 6. This new solicitation utilizes a rolling application process and removes “tiebreaker” mechanisms used in the previous solicitation.

Requirements and allocations:

• Pricing: All projects must provide a 20% discount on electricity costs for all customers, and a minimum 25% discount for low- and moderate-Income (LMI) customers.
• Incentives: While allowing for significantly more Community Solar, the BPU reduced the incentive from $80/MWh to $60/MWh.
• Capacity by utility: The 3,000 MW is allocated across the four electric distribution companies based on the load served, as follows: PSE&G: 1,555 MW; JCP&L: 778 MW; Atlantic City Electric: 324 MW; and Rockland Electric Company: 45 MW