New Jersey battery incentives in 2026: what pays now, what opens in 2027, and the catch

Not statewide. New Jersey has no open statewide program that pays you for a home battery. The state's home battery program, part of the Garden State Energy Storage Program, is still a staff proposal. It is planned to open by July 2027.

Two utilities pay now. PSE&G takes $5,000 off a new battery through its GridSmart pilot. JCP&L pays people who already have a battery for letting it help the grid in summer.

Town-run utilities are not part of these programs. The rest of this page goes program by program. First: the tax breaks most people ask about.

The 30% federal credit is gone for new batteries. The IRS says it is "not available for any property placed in service after December 31, 2025." The cost counts on the day the install is finished, not the day you paid.

New Jersey has one tax break that can help, and one that does not.

The BPU's own cost math for the state program assumes companies that own home batteries still claim a 30% business credit. That is not a credit you claim yourself.

Pick your utility and where you are with a battery. The finder lists every program we found for you, what it pays up front and over time, and the catch in each one.

The amounts come from each program's own page and the BPU's filings on Oct. 26, 2026. The 10-year numbers assume a program keeps paying the same amount. The state program's numbers are a proposal, not a promise.

Every home on the four big utilities can also pick who sells its power. That choice does not change the battery money, but it can change your bill.

PSE&G takes $5,000 off a new battery, right on the installer's bill. It also lends up to $25,000 with no interest, paid back on your PSE&G bill. PSE&G announced the pilot on Aug. 26, 2026, and says spots are limited.

You need a smart meter, Wi-Fi and 12 months of PSE&G bills. The battery must be a Tesla Powerwall 3, an Enphase 10C, or two or more Enphase 5P units. PSE&G's FAQ asks for at least "8.5 kW of storage capacity." PSE&G sends an email at least 1 hour before an event.

The biggest catch is leaving early. Drop out before year 5 and you pay back part of the $5,000.

Selling your home in the next five years? Ask PSE&G how the program moves to a buyer before you sign. Our PSE&G rates guide covers what you pay for power.

JCP&L pays people who already have a battery. You let it draw from the battery at peak times in summer, and it pays you for each summer. JCP&L says its average customer earns $360 a summer, paid on a virtual prepaid Visa card.

Any Tesla Powerwall 2, 3 or + or Enphase IQ battery can join, old or new. You do not need solar. JCP&L will not call an event when a severe storm is forecast. You can leave any time. The program period runs from June 1, 2025 to June 30, 2027.

JCP&L runs the program with a company called EnergyHub. Our JCP&L rates guide covers your supply price.

Neither had a home battery program on Oct. 26, 2026. Atlantic City Electric's Energy Wise Rewards pays for smart thermostats only, up to $100. Rockland Electric listed only a thermostat program for New Jersey homes at a BPU meeting on July 30, 2026. Its battery program is for its New York side.

For these homes, the state program is the one to watch. It sets aside 21 MW for Atlantic City Electric and 4 MW for Rockland Electric. Our Rockland Electric guide covers that utility's price.

It is the state's battery program. Phase 1 pays for big batteries on the grid, not homes. Phase 2 starts with a home block, and the BPU staff proposed it on Aug. 17, 2026. The board has not voted on it yet.

Here is the catch, in the BPU's own example. A 13.5 kWh, 11.5 kW battery could earn up to $2,300 a year at $200 per kW. But the pay is cut by a "Performance Factor" based on how much power the battery gives during events. In the BPU's example that factor is 23.5%, so the battery earns $540 a year. Over 10 years that is about $5,400, by our math.

More rules from the proposal: new batteries only, with no older or expanded systems. A $50 application fee you do not get back. The battery must be running within 12 months of approval. A company that owns or runs your battery must pass at least 70% of the pay to you. And homes on a supplier plan that passes wholesale costs through cannot join.

1. Proposal publishedAug. 17, 2026. Public comments closed Sept. 10, 2026.
2. Board order plannedPlanned for October 2026. It was not on the Oct. 14 or Oct. 28 meeting agendas.
3. Utility filingsPlanned for December 2026, after the board order.
4. Program opensPlanned by July 2027.
5. 50 MW installedTarget: July 2028. The full 150 MW by February 2030.

Once it opens, the BPU staff say it "will be the only residential storage incentive available" for new batteries. The utility programs from the current cycle run until then. A separate July 15, 2026 proposal would add programs for batteries people already own, from 2027 to 2029.

It depends on your utility and how soon you need backup. In the PSE&G area, $5,000 now is close to the state program's 10-year example of about $5,400. And the PSE&G money comes up front.

The two do not stack. Under the state's storage rules, a battery in the state program cannot also get another New Jersey grant or rebate made for storage. And the proposal takes new batteries only, so a battery you install now likely cannot join later. That is our reading of the proposal, and the final rules may differ.

The BPU's own cost model uses $1,250 per kWh for a home battery system under 10 kW. For a 13.5 kWh battery, that is about $16,900, by our math. With PSE&G's $5,000 off, that drops to about $11,900.

Quotes vary with the battery, the number of units and the wiring your home needs. Get two or three quotes in writing, and ask each installer whether it is on PSE&G's contractor list if you are a PSE&G customer.

Batteries are still rare here. The BPU staff estimate 8,500 to 11,000 batteries are already in New Jersey homes.

A battery mostly saves money through these programs and backup, not by shifting solar power. New Jersey still credits solar power sent to the grid at the full retail price over a 12-month period. A replacement for that rule is under review.

Yes, if you keep a reserve. PSE&G keeps 20% of the charge for you during events. JCP&L will not call an event when a severe storm is forecast. Set your own reserve in the battery's app.

Outages are a real worry here. In early July 2026, heat and storms left many New Jersey homes without power for a long time, and the BPU opened a review of how the utilities responded.

No. We found no company selling a home battery bundled with an electricity plan in New Jersey on Oct. 26, 2026. Base Power says it serves homeowners in Texas and Illinois only, although a Base company is on New Jersey's supplier list. Energywell says its battery offers are only in Texas and Illinois.

You can still shop for the power itself. Every home on the four big utilities can pick a supplier. If you plan to join the state battery program, choose a fixed price. The proposal shuts out homes on plans that pass wholesale costs through. Our New Jersey electricity suppliers guide explains what to ask.

Start with your utility, then the program's own page. Most programs sign you up through the installer or the battery maker's app, not a form at the utility.

1. Find your utilityYour bill names it at the top: PSE&G, JCP&L, Atlantic City Electric or Rockland Electric.
2. Read the program pageCheck the amount, the battery list, the term and what leaving early costs.
3. Pick an installerFor PSE&G's discount, use a contractor in its program. It takes the $5,000 off the bill.
4. Enroll and set a reserveJoin through the installer or the battery app, and pick how much charge to keep for outages.
5. Give the seller Form ST-4If the battery stores solar power, the form can remove New Jersey sales tax.

Keep every paper: the program terms, your enrollment email and the install date. PSE&G's payback rules and the IRS both use dates.