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New Jersey is working toward 2,000 MW of storage by 2030. Phase 1 awarded 355MW of transmission-scale storage. Phase 2 is the part that reaches home batteries — but the Board has not published a single incentive figure for it, and the eligibility rule it has published rewards waiting, not rushing.
The Garden State Energy Storage Program (GSESP) was established by the NJ Board of Public Utilities in its Order Regarding the Garden State Energy Storage Program (BPU Docket No. QO22080540), dated June 18, 2025. It is the vehicle for reaching New Jersey's 2,000 MW by 2030 storage target under N.J.S.A. 48:34-87.8, Clean Energy Act of 2018 (P.L. 2018, c.17).
The program is built in phases, and the phase you are in determines everything. Phase 1 is a competitive procurement for transmission-scale, front-of-the-meter storage — roughly 1,000 MW across multiple tranches. Phase 2 is the distributed segment: the one that reaches behind-the-meter batteries at homes and businesses. A potential Phase 3 is deferred.
For a homeowner, that split has a blunt consequence. Everything GSESP has actually awarded so far belongs to Phase 1, and a home battery was never eligible for it.
Phase 2 eligibility, as recommended in the June 18, 2025 Order, reaches distributed standalone storage and storage paired with a distributed Class I renewable resource, provided the energy storage system is installed after the effective date of Phase 2. A battery energized before that date should not be assumed to qualify retroactively.
This is the opposite of the “install now to get ahead of the program” advice that circulates about GSESP. There are good reasons to install a battery today — outage protection and time-of-use savings are real and available now — but qualifying for a Phase 2 payment is not reliably one of them.
The Board approved Tranche 1 incentives on March 5, 2026. Three projects were selected, totaling 355 MW — just above the 350 MW floor of the solicitation's 350-750 MW target range. All three are front-of-the-meter, transmission-scale systems. The Board estimated ratepayer savings of $169M over the program's lifespan, funded from existing Societal Benefits Charge (SBC) funds — no new rate increase.
Capacity: 200 MW
Location: Sayreville, Middlesex County
Approved: March 5, 2026
Capacity: 150 MW
Location: Ridgefield, Bergen County
Approved: March 5, 2026
Capacity: 5 MW
Location: Bordentown, Burlington County
Approved: March 5, 2026
A behind-the-meter battery is not eligible for GSESP Phase 1. Phase 1 is a competitive procurement for front-of-the-meter, transmission-scale systems, and the program FAQ says so directly: a behind-the-meter project would not be eligible for Tranche 1, which is specifically intended for front-of-the-meter systems.
Read the NJBPU award announcementTranche 2 targets an additional 645 MW, which together with Tranche 1 completes the 1,000 MW Phase 1 transmission-scale target. It was opened at the direction of Executive Order 2, signed January 20, 2026. Eligible bidders are transmission-scale standalone storage, and solar-plus-storage projects that do not qualify for storage incentives under the Successor Solar Incentive (SuSI) Program. This is a developer solicitation — a home battery cannot bid into it. It matters to homeowners only as a schedule signal, because Phase 2 design work runs alongside it.
Source: New Jersey's Clean Energy Program — GSESP Phase 1, Tranche 2. The bid deadline was revised to October 5, 2026; a Board decision is anticipated December 2026.
Phase 2 is the portion of GSESP that reaches homeowners. The Board has committed to two incentive mechanisms for it and has described what each one is for. It has not attached a dollar value to either.
The June 18, 2025 Order contemplates a distributed procurement of roughly 500-800 MW over 2026-2030, with the Board reserving the right to reallocate between segments. Within the distributed segment, the program FAQ sets three size classes — a home battery falls in the smallest.
Residential and very small commercial
Most single-site commercial installations
Industrial, campus and multi-building loads
An administratively determined fixed incentive, offered through capacity blocks whose size the Board expects to set on an annual basis.
A payment tied to what the battery delivers when the utility calls it. The June 2025 Order directs the electric distribution companies to develop design proposals; it does not fix the final design.
The Board has not published Phase 2 incentive amounts. The June 18, 2025 Order states that incentive levels for the distributed segment "will be set to reflect market conditions at the time those phases of the program are released", and the program FAQ still describes the Phase 2 design as yet to be determined. Any per-kWh or per-kW figure circulating for a New Jersey commercial battery today is an estimate someone built from other states, not a New Jersey number.
The Order defines overburdened communities and anticipates an adder for them, but states that further revision to the OBC adder will be made during the development of the Phase 2 distributed incentive segments. The adder value is not published.
A potential Phase 3 — a Transmission Performance Incentive — is deferred. It is not open, and no timetable has been set.
The honest position today is that New Jersey homeowners have no battery-specific purchase incentive: the federal credit is gone and the state program that will eventually replace part of it is not open and carries no published value. That does not make a battery a bad purchase — it makes the case for one rest on outage protection and time-of-use bill savings, which are available now and do not depend on a future Board decision. Anyone quoting you a GSESP rebate as a line item on a 2026 proposal is quoting a number the Board has not set.
The useful moves here are about not getting caught out — by an eligibility rule that may not reach back to batteries already installed, and by dollar figures that do not come from a New Jersey order. None of this requires you to delay a battery you want for backup power today; it requires you to keep a possible Phase 2 payment out of your payback math until the Board publishes one.
This is the most consequential sentence in the program for a homeowner, and it points the opposite way from most advice you will read. Eligibility as recommended in the Order reaches storage installed after the effective date of Phase 2. A battery energized before that date should not be assumed to qualify retroactively. Install today for the reasons that stand on their own, not on the assumption that a Phase 2 payment will follow you backwards.
The Board has not published a Phase 2 incentive value. Per-kWh and per-kW numbers circulating for New Jersey home batteries are built from other states, not from a New Jersey order. If an installer quotes you a specific GSESP rebate today, ask which board order it comes from.
One of the two Phase 2 mechanisms is a performance incentive — a payment tied to what the battery delivers when the utility calls it. Whatever the final design, a system that cannot be remotely dispatched cannot earn a performance payment. Confirm your battery supports bidirectional grid interaction and that your installer configures it for grid-interactive operation.
The federal Section 25D residential clean energy credit expired December 31, 2025, and GSESP Phase 2 is not open. The programs listed further down this page are live now and do not depend on Phase 2 rules being published.
Phase 2 design will be settled in BPU Docket No. QO22080540 and published by New Jersey's Clean Energy Program. That is where a real number appears first. The facts on this page were last read back against those sources on August 5, 2026.
These programs are live today and do not depend on GSESP Phase 2 rules being published. Confirm current terms with each program before relying on them — unlike the Board orders cited above, utility and rebate program terms change without a docket.
Covers battery installation as part of whole-home electrification projects. Must include at least two qualifying upgrades (e.g., solar + battery, or battery + heat pump).
Learn MoreInterest-free financing for energy efficiency and clean energy improvements including battery storage. 5-year repayment through utility bill.
Learn MoreBatteries charge from solar during midday, discharge during peak TOU hours (2-7 PM summer, 5-9 PM winter). Saves 30-50% on peak rate charges.
Learn MoreBattery storage (when installed with solar) is exempt from NJ property tax assessment. A $15,000 battery adds $0 to your property tax bill.
Learn MoreGSESP is New Jersey's energy storage incentive program, established by the NJ Board of Public Utilities in its Order Regarding the Garden State Energy Storage Program (BPU Docket No. QO22080540), dated June 18, 2025. It works toward the state's 2,000 MW by 2030 storage target under N.J.S.A. 48:34-87.8, Clean Energy Act of 2018 (P.L. 2018, c.17). Phase 1 procures transmission-scale, front-of-the-meter storage. Phase 2 is the distributed segment that will reach behind-the-meter batteries, including residential.
The Board has not published Phase 2 incentive amounts. The June 18, 2025 Order states that incentive levels for the distributed segment "will be set to reflect market conditions at the time those phases of the program are released", and the program FAQ still describes the Phase 2 design as yet to be determined. Any per-kWh or per-kW figure circulating for a New Jersey commercial battery today is an estimate someone built from other states, not a New Jersey number.
The Board has not published a Phase 2 launch date. The June 18, 2025 Order contemplates a distributed procurement of roughly 500-800 MW over 2026-2030, and the program FAQ still describes the Phase 2 design as yet to be determined and subject to revision. Treat any specific launch month you see quoted as an estimate rather than a published date.
Phase 2 eligibility, as recommended in the June 18, 2025 Order, reaches distributed standalone storage and storage paired with a distributed Class I renewable resource, provided the energy storage system is installed after the effective date of Phase 2. A battery energized before that date should not be assumed to qualify retroactively. That cuts against the common advice to install early to get ahead of the program. Install now for the benefits that are certain today — outage protection and time-of-use bill savings — and treat a future Phase 2 payment as unconfirmed rather than as part of your payback math.
A behind-the-meter battery is not eligible for GSESP Phase 1. Phase 1 is a competitive procurement for front-of-the-meter, transmission-scale systems, and the program FAQ says so directly: a behind-the-meter project would not be eligible for Tranche 1, which is specifically intended for front-of-the-meter systems.
No. The federal Section 25D residential clean energy tax credit, which included a 30% credit for battery storage, expired on December 31, 2025. There is no federal tax credit for residential batteries in 2026, and GSESP Phase 2 is not open, so no New Jersey incentive replaces it today. Commercial batteries can still qualify for the Section 48/48E Investment Tax Credit.
Tranche 1 awarded 355 MW on March 5, 2026. The three projects are Woods Landing Storage LLC (200 MW) in Sayreville, Middlesex County; Two Rivers Energy Storage LLC (150 MW) in Ridgefield, Bergen County; North America Energy Storage Corp. (5 MW) in Bordentown, Burlington County. All are front-of-the-meter, transmission-scale systems. The Board estimated ratepayer savings of $169M over the program's lifespan, funded from existing Societal Benefits Charge (SBC) funds — no new rate increase.
Tranche 2 is a 645 MW solicitation that, together with Tranche 1, completes the 1,000 MW Phase 1 transmission-scale target. Bids are due October 5, 2026 and a Board decision is anticipated December 2026. It was directed by Executive Order 2, signed January 20, 2026. Tranche 2 is for transmission-scale projects — a home battery cannot bid into it.
A potential Phase 3 — a Transmission Performance Incentive — is deferred. It is not open, and no timetable has been set.
Phase 2 equipment requirements have not been published, so no model list is official yet. What is known is that one of the two Phase 2 mechanisms is a performance incentive tied to what the battery delivers when the utility calls it, which requires bidirectional grid interaction and remote dispatch. Any battery you install now should support both, and your installer should configure it for grid-interactive operation. Treat specific model eligibility as unconfirmed until the Board publishes Phase 2 rules.
We will quote your system on outage protection and time-of-use savings — the value that exists now — and tell you plainly where GSESP Phase 2 stands rather than pricing in an incentive the Board has not published. When Phase 2 opens with real numbers, we will walk you through whether your system qualifies under its install-timing rule.
Every GSESP figure on this page comes from one of the primary sources below. Where the Board has not published a number, this page says so rather than estimating one. Last read back against these sources on August 5, 2026.