At its regularly scheduled agenda meeting on December 16, 2015, the New Jersey Board of Public Utilities issued a Board Order approving Staff’s recommendation for a Fiscal Year 2016 Renewable Electric Storage Incentive Program. The Program, designed as an open enrollment program with a prescriptive rebate, will begin accepting applications at 9:00 am on March 1, 2016. Program forms and application instructions will be posted on the “Electric Storage Forms” page in the near future. Please check back here periodically for more details and updates regarding the FY2016 program.
Board Staff is currently preparing a Frequently Asked Questions (FAQ) document regarding the program that will be publicly shared with the renewable electric storage community. Board staff invites stakeholders to submit their questions for inclusion in this FAQ document. Questions should be submitted via email to email@example.com by 5 pm on Friday, February 5. The FAQ document will be posted shortly thereafter to this page. This invitation is for questions only; suggestions for changes in the program cannot be accommodated at this time.
Renewable Electric Storage Incentive Program
The Fiscal Year 2016 Renewable Electric Storage Incentive Program provides financial incentives for energy storage systems that are integrated with Class 1 renewable energy projects installed behind-the-meter at customer sites. It seeks to benefit New Jersey ratepayers by supporting the installation of renewable electric storage systems in government, commercial, institutional and industrial entities for the purpose of providing emergency back-up power for essential services, offsetting peak loads by shifting electricity to hours of higher demand and, or helping to stabilize the electric distribution system through the provision of frequency regulation services. Key elements of the program are summarized below.
Funding Levels and Budget: The Board approved a $6 million budget for renewable electric storage incentives in FY2016. Of that amount, $3 million was allocated to the open enrollment program. The remaining $3 million was reserved for a Solicitation later in FY2016. The Solicitation’s guidelines will be based on research currently being conducted by the Rutgers Laboratory for Energy Smart Systems (LESS).
Incentive Structure and Maximums: The open enrollment program offers an incentive of $300 per kWh of energy capacity (capacity data must be verified by the equipment manufacturer’s spec sheet). The maximum incentive per project is $300,000 or 30% of the project’s total cost, whichever is less. The maximum incentive per entity is $500,000, which applies to multiple projects under the ownership of a single site host, developer/installer or other ownership entity.
Eligibility Requirements: Renewable electric storage projects must have a minimum energy capacity of 100 kWh and be integrated with either a new or existing net metered, behind-the-meter New Jersey Class 1 renewable energy installation that is interconnected to the New Jersey distribution system and provides no more than 100% of site host’s historic annual electric use. The site host must be served under a non-residential tariff and pay into the Societal Benefits Charge through its utility bills. Incentives are contingent on the applicant meeting all program and EDC interconnection requirements and all applicable local, state and federal laws.
Technical Requirements: Storage systems must be capable of charging and discharging electricity only. Electricity placed into storage must be generated by the Class 1 renewable energy system to which the storage is integrated. Storage may not be charged by other on-site fossil-fueled generators or imported from the grid except for short-term charging and discharging that enables ancillary services with no material net import/export from the grid. Equipment must be new, permanently installed and utilize proven and commercially available technology.
Application Process: Applications will be accepted on a first-come, first-served basis beginning at 9:00 a.m. on March 1, 2016. Applications will be accepted until incentive commitments reach the program’s $3 million budget. Incomplete applications will be removed from the queue and returned to the applicant with the deficiencies noted. Once the deficiencies are remedied, the application may be resubmitted and will be inserted into the queue as of the date of resubmittal. Once an application is approved, an approval letter will be mailed to the applicant. The project must be completed, and a Final As-Built package submitted, within 12 months of the date on the approval letter. Projects requiring a six-month extension will forfeit 10% of their incentive award.
Performance-based Regulation Market in PJM
- Presentation on July 29, 2014 to the NJ Energy Storage Working Group by Eric Hsia, Manager, Performance Compliance
- PJM report "Performance Based Regulation: Year One Analysis"dated 10-12-13. This report addresses the specific impacts that Performance Based Regulation had on PJM operations, markets and settlements.
Please visit the Energy Storage Meeting page for more information.