NJ BPU proposes battery-eligible VPP program
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- The NJ Board of Public Utilities released a July 15 straw proposal for a two-year, technology-neutral VPP program administered by the state's four electric distribution companies, with a launch no later than July 1, 2027 and written comments due Aug. 17.
- Customer-sited batteries and other distributed energy resources would be allowed to stack distribution-level grid services payments with PJM Interconnection wholesale market revenues, with a market-based, open-access tariff phase set to begin in 2029.
- Executive Order No. 2 from Democratic Gov. Mikie Sherrill, issued in January, set the 180-day directive for a VPP program and aggressive capacity targets for distributed, community-scale and utility-scale solar and storage.
- PSE&G's Tim Fagan said the utility plans to roll out a VPP program this month offering roughly $5,000 upfront for an 8-kW home battery, with on-bill repayment for the remaining balance in exchange for peak-shaving discharge rights, and noted "several thousand" small-scale batteries already deployed in the state.
- Fagan urged New Jersey to let EDCs own energy storage, citing recent shortfalls in geographically targeted customer-sited procurements in Hawaii and Massachusetts and saying utility-owned storage can backstop increasingly congested distribution circuits.
- Pepco Holdings' Andrew Bayne said Delmarva Power's Delaware "bring your own battery" pilot has 100–300 devices enrolled, paying customers about $1,080 per year via direct deposit, but questioned whether that sum is enough to offset customer tolerance for cycling events and attrition.
Why it matters: The two-year transitional phase locks in EDC administration before the 2029 open-access tariff lets third-party aggregators compete on equal terms. PSE&G's $5,000 upfront incentive and Delmarva's roughly $1,080-per-year performance payments give the BPU concrete benchmarks to size customer compensation, while Fagan's call for EDC-owned storage — backed by shortfalls in Hawaii and Massachusetts — signals an upcoming fight over who owns the assets on New Jersey's grid.
