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PSE&G is launching RS-TOU-3P on June 1, 2026 with an estimated ~$0.10/kWh peak-to-off-peak spread — roughly 3x larger than Connecticut's TOU spread. Here's how to maximize your solar + battery investment.
PSEG is launching RS-TOU-3P on June 1, 2026 with three rate periods: on-peak (~$0.31/kWh, 4-9 PM weekdays), mid-peak (~$0.25/kWh), and off-peak (~$0.21/kWh, midnight-6 AM). The ~$0.10/kWh spread is roughly 3x larger than CT's, making TOU arbitrage with a home battery significantly more valuable. Even without a state battery incentive, a 13.5 kWh battery can deliver $700-$1,450/year in combined value from arbitrage, self-consumption, and backup power.
All RS-TOU-3P rates shown are PROJECTED estimates. Final rates pending NJ BPU approval.
Unlike most Northeast TOU rates that have 2 periods, PSEG RS-TOU-3P introduces a 3-period structure with a valuable mid-peak tier.
Important: Estimated Rates
The rates below are projections based on PSE&G regulatory filings and NJ BPU docket analysis. Final rates will be determined by the NJ Board of Public Utilities before the June 1, 2026 launch. The actual TOU spread may differ.
Launching June 1, 2026
On-Peak
31¢
4:00 PM – 9:00 PM
Weekdays (excluding PJM holidays)
Mid-Peak
25¢
All other hours (9 PM–12 AM, 6 AM–4 PM weekdays; 6 AM–12 AM weekends)
Off-Peak
21¢
12:00 AM – 6:00 AM daily
Your battery charges from cheap off-peak electricity or free solar, then discharges during expensive on-peak hours. The 3-period structure adds a mid-peak optimization layer.
6 AM - 4 PM
Mid-Peak
Solar panels generate power. Battery charges from solar. Export excess to grid for 1:1 net metering credits.
4 PM - 9 PM
On-Peak
Most expensive hours begin. Battery discharges to power your home instead of buying at ~$0.31/kWh.
9 PM - 12 AM
Mid-Peak
Battery may continue discharging if needed, or you draw from grid at the moderate ~$0.25/kWh rate.
12 AM - 6 AM
Off-Peak
Cheapest hours. Battery recharges from grid at ~$0.21/kWh, ready for the next peak cycle.
NJ lacks CT's ESS program, but the projected ~$0.10/kWh TOU spread and strong ADI/SREC-II income create a compelling value proposition for battery storage.
TOU Arbitrage
Charge off-peak ($0.21/kWh), discharge on-peak ($0.31/kWh). ~$0.10/kWh spread.
Self-Consumption
Use stored solar instead of buying from grid during mid/on-peak hours.
Net Metering Optimization
Avoid exporting excess solar during low-value hours; shift to peak self-consumption.
Backup Power Value
Estimated reliability value based on NJ outage frequency and grid stress events.
ADI/SREC-II (paired solar)
Informational: from paired 10-13 kW solar. Battery maximizes self-consumption which preserves ADI income.
GSESP Phase 2
TBD — Phase 2 expected 2026. No amounts announced. Currently $0.
Select your battery size and paired solar system to see the full value breakdown with projected PSEG RS-TOU-3P rates.
Projected RS-TOU-3P savings + full value stack
Projected Rates
RS-TOU-3P rates are estimated projections. Final rates will be set by NJ BPU before the June 1, 2026 launch.
PSEG RS-TOU-3P Rates
EstimatedOn-Peak
4-9 PM wkdays
31¢
Mid-Peak
Other daytime
25¢
Off-Peak
12-6 AM
21¢
Spread
On - Off
10¢
Current flat rate: 26¢/kWh
Annual Battery Value Breakdown
ADI/SREC-II Income (from paired 10 kW solar)
$971/yr
Informational: ADI income comes from solar production, not the battery. The battery maximizes this value by increasing self-consumption. Based on $85.90/MWh (EY2025-26) rate.
GSESP Phase 2: Residential Battery Incentive
Phase 1 targets transmission-scale storage. Phase 2 will expand to distributed and residential storage but no incentive amounts, enrollment dates, or program structure have been announced. Do not claim any NJ battery incentive as available.
Current residential incentive: $0
Cumulative Battery Value (2% annual escalation)
5-Year Total
$6,849
Battery savings only
10-Year Total
$14,410
Battery savings only
Estimates based on projected PSEG RS-TOU-3P rates (launching June 1, 2026). Actual values depend on final BPU-approved rates, usage patterns, and solar production. Section 25D residential ITC expired Dec 31, 2025 — $0 federal tax credit for homeowner battery purchases. ADI income shown separately as it comes from solar, not the battery.
NJ and CT take fundamentally different approaches to battery value. NJ relies on market-driven TOU savings; CT offers structured incentives.
| Category | NJ (PSEG) | CT (Eversource) |
|---|---|---|
| TOU Spread | ~10¢/kWh | ~3.5¢/kWh |
| TOU Periods | 3 (on/mid/off) | 2 (peak/off) |
| Battery Upfront Incentive | $0 (GSESP Phase 2 TBD) | $250-600/kWh (ESS) |
| Demand Response Payments | None | $225/kW/yr (Yr 1-5) |
| Solar Incentive | ADI $85.90/MWh (15 yr) | RRES (buy-all or net) |
| Net Metering | 1:1 retail | 1:1 retail |
| Avg Electric Rate | ~26¢/kWh | ~28-31¢/kWh |
| TOU Arbitrage (10 kWh) | ~$212/yr | ~$74/yr |
NJ's ADI (Administratively Determined Incentive) pays solar owners $85.90/MWh for EY2025-26 (rising to $95.23/MWh for EY2026-27) — quarterly payments for 15 years based on solar production. A battery doesn't increase your ADI income directly, but it maximizes total system value in two key ways:
By storing excess solar production in your battery instead of exporting it, you consume more of your own power during expensive on-peak hours. Your ADI payments stay the same (based on production) while your grid purchases drop significantly.
NJ offers 1:1 retail net metering, but annual true-up pays excess at avoided-cost (wholesale). A battery helps you stay within the 1:1 credit zone by shifting exports to self-consumption, avoiding the lower wholesale payout.
EY2025-26 Rate
$85.90
/MWh (current)
EY2026-27 Rate
$95.23
/MWh (upcoming)
Payment Term
15
years quarterly
New Jersey's Grid Supply Energy Storage Program has two phases. Only Phase 1 is currently active, targeting transmission-scale utility storage.
We will update this page when GSESP Phase 2 details are announced by NJ BPU.
The Section 25D residential clean energy tax credit expired December 31, 2025. Homeowners who purchase a battery with cash or a loan receive $0 in federal tax credits in 2026.
Section 25D expired Dec 31, 2025. Federal ITC = $0. You own the system and keep all ADI/SREC-II income.
The third-party system owner can claim Section 48/48E ITC (30%) for projects beginning construction before July 4, 2026. Savings passed to you as lower payments.
Timing matters: If you are considering a PPA or lease for solar+battery, the Section 48/48E ITC requires construction to begin before July 4, 2026. This deadline applies to the financing company, not you — but it affects your rate. Learn more about Section 48 for homeowners.
All figures assume projected PSEG RS-TOU-3P rates and paired 10 kW solar system.
Enphase IQ 5P
5 kW / 5 kWh
Enphase IQ 10T
10 kW / 10 kWh
Tesla Powerwall 3
11.5 kW / 13.5 kWh
Projected values based on estimated RS-TOU-3P rates with 2% annual rate escalation. Excludes ADI/SREC-II income from paired solar.
These battery systems are compatible with PSEG interconnection and pair well with residential solar for TOU optimization.
Tesla Powerwall 3
13.5 kWh / 11.5 kW
Most popular, integrated inverter
Est. TOU value: $1,316/yr
Tesla Powerwall 2
13.5 kWh / 5 kW
AC-coupled, legacy model
Est. TOU value: $872/yr
Enphase IQ Battery 5P
5 kWh / 3.84 kW
Modular, pairs with Enphase microinverters
Est. TOU value: $458/yr
Enphase IQ Battery 10T
10.08 kWh / 3.84 kW
Larger Enphase option
Est. TOU value: $657/yr
SolarEdge Home Battery
9.7 kWh / 5 kW
DC-coupled, SolarEdge ecosystem
Est. TOU value: $722/yr
Franklin WH aPower
13.6 kWh / 5 kW
Whole-home backup capable
Est. TOU value: $875/yr
Generac PWRcell
9 kWh / 4.5 kW
Scalable 3-18 kWh
Est. TOU value: $660/yr
sonnen ecoLinx
12 kWh / 8 kW
Premium smart home integration
Est. TOU value: $1,017/yr
Get a personalized solar+battery quote with TOU optimization analysis, ADI/SREC-II projections, and financing options tailored to your PSEG territory home.