The New Jersey Board of Public Utilities (NJBPU) has approved three new initiatives to increase clean energy generation within the state, improve the reliability of the electricity grid, and help manage electricity costs for residents and businesses.
The measures include incentives for solar and battery storage projects, a new round of storage solicitations, an expansion of the Competitive Solar Incentive (CSI) Program, and what is described as the largest-ever expansion of a state-run Community Solar energy program in the United States.
“Solar and battery storage are the fastest and most cost-effective ways to build new electricity generation. Today’s actions advance Governor Sherrill’s clean energy goals while continuing the Board’s commitment to balancing affordability and promoting clean, in-state energy resources,” said NJBPU President Christine Guhl-Sadovy.
In its first action, NJBPU awarded incentives to three large-scale battery storage projects totaling 355 megawatts (MW), slightly above the minimum required by state law. These projects are expected to provide flexible power to the PJM regional grid, which could help ease capacity shortages that have contributed to higher electricity prices in the area. According to NJBPU analysis, these awards may lead to significant savings for ratepayers over time—upwards of $169 million—due to increased grid capacity moderating wholesale prices during peak demand.
Funding for these incentives will come from existing Societal Benefits Charge funds, meaning no new rate increases are planned for these projects.
The Board also opened a second competitive solicitation for 645 MW of additional storage capacity as part of Phase 1, Tranche 2 of its Garden State Energy Storage Program. This move follows Governor Mikie Sherrill’s Executive Order 2 from January 2026, which called for opening Tranche 2 within 45 days. Once completed, New Jersey will reach its legal target of 1,000 MW transmission-scale storage and make progress toward a broader goal of 2,000 MW by 2030. The solicitation is open both to stand-alone storage projects and solar-plus-storage projects not covered under other incentive programs. The board expects this initiative will also result in net customer savings by helping address rapid load growth on the grid—partly due to new data centers—and enabling participation in future PJM Base Residual Auctions.
For its second action, NJBPU approved awards under round three of its CSI Program for three solar projects totaling just over 24 MW. The CSI Program uses competitive bids to award renewable energy certificates for qualifying solar or combined solar-storage projects as well as large non-residential facilities with net metering. One notable winning project at Wanaque Reservoir by the North Jersey District Water Supply Commission would become the largest floating solar facility in the country.
The Board also announced it would launch a fourth round of CSI Program solicitations with pre-qualification starting March 11, 2026. For this round there will be a special category for basic grid supply projects larger than or equal to 20 MW and an option for large net-metered facilities seeking additional paired storage incentives. Confidential price caps have been set as consumer protection against high bids; bid fees are waived for previous participants. The CSI Program aims to help New Jersey meet its target of adding up to 3,750 MW in new solar power by 2026 under state law.
In its third major step, NJBPU approved a record-setting expansion of New Jersey’s Community Solar Energy Program by an additional 3,000 MW—enough capacity to benefit around 450,000 subscribers statewide. This move is projected to elevate New Jersey into one of the top states nationally for community solar deployment. Registrations for community solar projects will be accepted until December 31, 2029 or until all capacity is allocated among utilities.
