This bill establishes a pilot program aimed at incentivizing the installation of energy storage systems in New Jersey, with the goal of enhancing energy independence and security for electric customers. The Board of Public Utilities (BPU) is tasked with developing this program within 90 days of the bill's effective date, which will include both upfront and performance incentives for eligible energy storage systems. The upfront incentive will be a one-time payment based on the installed capacity of the system, while the performance incentive will provide recurring payments to compensate owners for the services their systems provide to the grid. The bill also mandates that at least one-third of the upfront incentives be reserved for low-to-moderate income customers and those in overburdened communities.

Additionally, the bill requires electric public utilities to file a tariff for front-of-the-meter energy storage systems that are not subject to existing tariffs, ensuring they receive appropriate compensation for their value to the grid. The BPU is also directed to conduct a review of the pilot program within a year of its establishment and to adopt rules for a permanent energy storage incentive program within three years. The program aims to meet or exceed the state's goal of achieving two gigawatts of energy storage capacity by 2030, with a minimum allocation of $60 million per year from the societal benefits charge to fund the upfront incentives.