Energy storage projects in both Illinois and New Jersey with ComEd and PSE&G previously needed a threshold load of 1MW in the summer months. Now, with the introduction of incentives, the threshold has dropped substantially. With both ComEd and PSE&G, the threshold has been reduced to a load of only 250MW. This is huge news in terms of energy storage and allows for the introduction of not only new projects but retrofits as well. The updated New Jersey storage incentives will enable customers and businesses to explore storage solutions, and benefit from the installation of these assets.
Energy storage is becoming increasingly important in the renewable energy industry as it provides many benefits to customers and their businesses. Energy storage is also crucial to achieving New Jersey’s clean energy goals. The state has one of the most ambitious storage targets in the nation. A statutory mandate is to achieve 2,000 MW of installed energy storage by 2030. Energy storage solutions will increase the resilience of New Jersey’s electric grid, as well as reduce carbon emissions and aid the state in the transition to 100% clean energy.
The new incentives for energy storage are an additional benefit to customers looking to add energy storage solutions to their renewable energy assets. The New Jersey Storage Incentive Program is as follows:
Program size – 480 MWh by 2030, 6 MWh initial block.
Incentive details – Standalone or solar + storage, annual incentive paid over 10 years. The initial block starts at $40/kWh-yr. and each block declines by $2/kWh-yr. Compensation for the ongoing grid services program is still to be determined.
Indicative economics – 15-25% IRR.
Sizing guidelines – >500kW Coincident Peak.
This is exciting news in the world of renewable energy and means that this is the ideal time to look into energy storage solutions for you and your company. Pfister Energy is your partner for turnkey storage solutions, and we are available to discuss your options to ensure you find the best solution to fit your needs.
