PSE&G launches VPP pilot with $5,000 home battery incentive

PSE&G, New Jersey's utility, has launched a new program called GridSmart Battery Program that pays homeowners to install a home battery. If you're a PSE&G residential electric customer, you can get $5,000 upfront toward the cost of a qualifying battery system, plus the option to borrow up to $25,000 at 0% interest, repaid through your utility bill, to cover the rest of the hardware and installation.

The catch: your battery becomes part of PSE&G's virtual power plant, a network of home batteries the utility can draw on together like one big power source. During scheduled "GridSmart Battery Events," PSE&G will switch your battery to power your home instead of pulling from the grid, easing strain during high-demand periods. You'll get advance notice before any of these events happen.

The pilot is part of a larger push by the New Jersey Board of Public Utilities to expand battery storage statewide, with a goal of 2,000 megawatts of storage by 2030. Regulators are also working on a permanent statewide framework for these battery networks, and what PSE&G learns from this pilot will help shape those future rules.

If you're a PSE&G customer thinking about a home battery for backup power, this program is worth a look for the upfront incentive and financing option. Enrollment requires installing approved battery hardware, and PSE&G has posted a list of participating contractors on its website.