Public Service Electric & Gas Company (PSE&G) has officially rolled out the GridSmart Battery Program, a new residential pilot initiative designed to offset the cost of home battery energy storage systems while advancing New Jersey’s grid modernization and clean energy goals.
The program provides participating residential electric customers with a $5,000 upfront incentive toward the purchase and installation of a qualifying home battery system. To further ease the transition, PSE&G is offering up to $25,000 in interest-free, on-bill repayment options for any remaining installation balances.
Beyond supplying reliable backup power during unexpected weather outages, batteries enrolled in the program will support scheduled GridSmart Battery Events.
During these planned events—for which customers receive advance notice—participating home systems will temporarily power the residence to reduce strain on the local electric grid during periods of peak energy demand. Data gathered from the pilot will allow PSE&G to evaluate key benefits like system reliability, peak load reduction, and overall customer resiliency.
“Through the GridSmart Battery Program, we’re giving customers another way to invest in their homes by adding reliable backup power while helping us better understand how residential battery storage can support a more reliable electric grid,” Lauren Thomas, vice president of Clean Energy Solutions – Customer Solutions, said. “It’s an important step in helping shape the future of energy in New Jersey.”
The pilot operates as a core component of PSE&G’s residential Virtual Power Plant (VPP) framework. By aggregating distributed energy resources to operate in a coordinated network, VPPs provide flexibility to the larger energy system, potentially deferring costly transmission upgrades and lowering peak-time generation demands.
The launch coincides with broader state measures; in July, the New Jersey Board of Public Utilities (NJBPU) initiated a formal stakeholder process to establish a statewide VPP framework. PSE&G’s pilot is expected to supply critical operational insight into how customer-owned storage can anchor future programs.
