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 consumers. The Board of Public Utilities (BPU) is tasked with developing this program within 180 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 all-in system cost, which encompasses all expenses related to the installation of the energy storage system. The bill mandates that at least one-third of these incentives be reserved for low-to-moderate income customers and those in overburdened communities. Additionally, the BPU is required to allocate at least $60 million annually from the societal benefits charge to fund these incentives.

The performance incentive will provide recurring payments to energy storage system owners for the services their systems provide to the grid, such as reducing peak demand and enhancing grid resilience. The bill also requires electric public utilities to file a tariff for front-of-the-meter energy storage systems, ensuring they are compensated for their value to the grid while exempting them from certain charges. Furthermore, the BPU must conduct a review of the pilot program within a year of its establishment and report its findings to the Legislature. Ultimately, the bill aims to support the state's goal of achieving two gigawatts of energy storage capacity by 2030 and to create a permanent energy storage incentive program within three years.