The New Jersey Association of Clean and Renewable Energy is calling on state policymakers to accelerate development of large-scale battery storage, saying the technology could help address rising electricity demand and improve the reliability of the power grid.
Battery storage systems store electricity when demand and prices are lower and release it back onto the electric grid when demand is high. Unlike a power plant, the batteries do not generate electricity; they act more like a reservoir for electricity, helping to reduce peak demand pressures and integrate renewable energy onto the grid.
In a policy report released Wednesday, the NJACR recommends expanding New Jersey’s Garden State Energy Storage Program, creating a state battery-storage investment tax credit, streamlining permitting, and establishing statewide standards for the siting of battery facilities.
NJACRE noted that electricity prices for New Jersey residents and businesses increased by 17% to 20% in summer 2025. It attributes some of the pressure on the grid to rising demand in the PJM Interconnection region, which operates the electric grid and wholesale market serving New Jersey and 12 other states and the District of Columbia.
The report’s recommendations come as New Jersey works to meet a statutory goal of installing 2,000 megawatts of energy storage by 2030. NJACRE estimates the state currently has only about 1 gigawatt-hour of operational utility-scale storage, leaving a significant amount of new capacity to be developed over the next four years.
The gap between New Jersey's current operational capacity (1GWh) and states such as California (59.8 GWh) and Texas (26.3 GWh) illustrates both the scale of future deployment needs and the potential market opportunity, the report said.
“New Jersey's population density, its location within the PJM grid (the largest electricity market in the world), its growing data center footprint, and its existing industrial real estate make it well-positioned to expand deployment if supported by a stable policy and permitting environment,” the report said.
The NJACRW said battery projects can be developed more quickly than traditional power plants. It estimates that utility-scale battery projects typically can be deployed in 18 to 36 months, compared with potentially a decade for some traditional generation projects.
NJACRE also recommends a state investment tax credit covering 10% to 15% of eligible battery storage investments, modeled on the federal program. Such an incentive would make New Jersey competitive with other states seeking to attract private capital in large-scale storage.
Another major recommendation in the report is a streamlined statewide permitting process, particularly for projects located on previously developed sites such as brownfields, landfills, and industrial properties. NJACRE proposes review timelines of no more than 180 days for battery projects smaller than 100 MW, along with statewide standards addressing fire safety, setbacks, and community notification.
The report also calls for battery-storage targets to be incorporated into the next update of New Jersey’s Energy Master Plan with five-year deployment milestones. Among other things, NJACRE recommends establishing interim deployment targets and identifying areas where storage development could help address grid congestion.
New Jersey policymakers should also plan for longer-duration battery technologies, rather than relying primarily on conventional systems capable of storing electricity for a few hours, the report states. NJACRE recommends creating a dedicated incentive for storage systems capable of storing electricity for at least eight hours.
“Strategic deployment of both short-duration and long-duration storage can help improve grid flexibility, support renewable energy integration, reduce peak demand pressures and enhance resilience,” the report says.
The report also emphasizes the potential economic impact of battery storage development. A typical utility-scale battery project requires between 200 and 400 construction workers during the building phase, with permanent jobs in areas such as engineering, monitoring, and maintenance once a project is operating.
NJACRE also said large-scale projects can provide municipalities with additional tax revenue through property taxes, payments in lieu of taxes and community benefit agreements.
“Battery storage is not a standalone solution to New Jersey’s energy challenges, but it is likely to become an increasingly important component of the state’s long-term reliability and clean energy strategy,” the report states.
“Strategic deployment of both short-duration and long-duration storage can help improve grid flexibility, support renewable energy integration, reduce peak demand pressures, and enhance resilience during periods of system stress and extreme weather.”
