Battery-eligible New Jersey VPP program begins to take shape

New Jersey is putting together a program that would let home batteries earn money by helping the power grid. The state's Board of Public Utilities released a proposal in July for a two-year "virtual power plant" program — a system that links up home batteries and other small devices so utilities can call on them together, like one big power plant. It would start by mid-2027 and be run by the state's four electric utilities, before shifting to an open, ongoing program in 2029. The Board is taking public comments on the plan through August 17.

One utility, PSE&G, said it plans to launch its own battery program this month, offering homeowners about $5,000 upfront toward an 8-kilowatt home battery, with the rest financed through the company's on-bill repayment plan. In exchange, PSE&G would be able to draw power from the battery during high-demand periods. The utility says it may later add ongoing payments for customers who already own batteries.

A related pilot in Delaware, run by Pepco's parent company, pays participating customers around $1,080 a year by direct deposit for letting the utility control their battery, and the company is considering bringing a similar program to its New Jersey customers. None of this is final yet — it is still in the planning and comment stage — but it points toward more homeowners in New Jersey having the option to get paid for letting a utility use their home battery during peak demand.