May 27, 2021

ESA Recommends Energy Storage Incentive for New Jersey Solar Successor Program

ESA filed comments today responding to the New Jersey Board of Public Utilities (“BPU”) Solar Successor Program Straw Proposal. The Straw Proposal included competitive solicitations for solar-plus-storage hybrids, using a single incentive payment based on electricity output.
ESA recommended the following program design changes to improve the effectiveness of incentives for energy storage:
  • A separate energy storage incentive, based on installed capacity instead of output, for solar-plus-storage projects that are selected through the competitive solicitations, up to a storage capacity target totaling 100 MW per year;
  • A one-time fixed incentive of $350/installed kWh for energy storage attached to solar projects that qualify for administratively-set incentives, such as small net metered projects and community solar; and
  • Initiation of a separate energy storage-only proceeding within 30 days to achieve the full benefits of energy storage and meet statutory storage targets.
The Straw Proposal also described a second phase of the energy storage program, for which staff envisions a separate straw proposal for issue in mid-2021. The Clean Energy Act of 2018 set energy storage targets of 600 MW by 2021 and 2,000 MW by 2030, and required the BPU to initiate a proceeding to develop mechanisms to support achieving the targets. ESA looks forward to engaging at length in New Jersey to fully realize these targets.

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