New Jersey Governor Phil Murphy on Wednesday signed into law a program aimed at expanding energy storage capacity in the state, seeking to ease rising electricity rates while supporting the transition to renewable energy.
The Garden State Energy Storage Program, established under legislation A5267, is designed to deploy 2,000 megawatts (MW) of energy storage by 2030. The multi-phase initiative will include large-scale transmission-connected projects and smaller distributed storage systems, funded through existing state resources without additional costs to ratepayers.
Murphy said the program would help “rein in energy costs in the long term” and accelerate deployment of new energy sources. “When it comes to deploying new sources of energy fast, there are no better options than solar and storage,” he said at the bill signing.
The first phase of the program focuses on transmission-scale storage, targeting at least 1,000 MW through competitive bidding. The initial solicitation, Tranche 1, will award 350-750 MW, with Tranche 2 scheduled for early 2026. Phase 2, expected to launch in 2026, will provide incentives for smaller, distribution-connected systems including residential and commercial installations. A potential Phase 3, offering performance-based incentives for large-scale storage, is under evaluation.
The state Board of Public Utilities said energy storage can be built and connected more quickly than conventional power plants. “This speed is critical right now because supply chain problems mean New Jersey can’t build traditional power plants within five years,” the agency said.
The legislation also received bipartisan attention in the state legislature. In the Senate, all 25 Democrats voted in favor while all voting Republicans opposed it. In the Assembly, 52 Democrats and three Republicans supported the measure, with 22 Republicans voting against.
Murphy cited rising electricity costs and delays from the regional grid operator, PJM, as key drivers for the program. “Put simply, this is about collecting and storing energy when prices and demand are low, and releasing them when demand and prices – and the grid is under stress – are high,” he said. The governor added that the state currently has about 79 projects in PJM’s queue awaiting approval, many of which are “shovel-ready solar projects that could power literally tens of thousands of homes.”
New Jersey, the fourth state to adopt an energy storage procurement policy with a 2,000 MW mandate, currently has about 90 MW of storage deployed, according to the Solar Energy Industries Association. The Garden State Energy Storage Program is expected to complement other initiatives, including a bill signed the same day to expand community solar capacity by more than three gigawatts.
