Sunshine And Batteries: NJ Makes 3 Big Moves On Solar Power Under Sherrill Administration

New Jersey just made some big moves to beef up its solar power production – and it will hopefully help to bring down residents’ skyrocketing electricity bills, Gov. Mikie Sherrill says.

The New Jersey Board of Public Utilities (NJBPU) greenlighted two major initiatives on Thursday, approving a massive expansion of its community solar energy program, and awarding incentives to boost solar production at three sites in Gloucester and Passaic counties (see below).

The agency’s announcement comes less than two months after Sherrill declared a “state of emergency” over the rising cost of electricity. MORE: Sherrill Declares State Of Emergency In 1st Day As Governor

Sherrill’s executive order cited several reasons for the rising price of electricity in New Jersey:

“The recent rise in electricity bills in our state is due to several factors, including but not limited to the escalating cost of transmission and distribution infrastructure on which the grid relies, volatility in the price of natural gas, and the skyrocketing price of the future supply of reliable, wholesale electricity—also known as capacity—in the regional PJM market.”

As part of the solution, Sherrill has been pitching a plan to expand solar, battery storage and nuclear power. Critics have argued that her plan doubles down on clean energy policies that haven't produced the promised results, while ignoring energy sources like natural gas and coal.

Sherrill has continued to plow ahead with her energy blueprint, however.

“When I signed Executive Order No. 2, I made a commitment to act with urgency and yesterday’s actions by the NJBPU deliver on that promise,” Sherrill said Thursday.

SOLAR POWER IN NEW JERSEY

Here’s what the NJBPU gave a thumbs-up to this week:

More Solar Production – The board approved incentive awards that will support the production of solar energy at three sites: Court at Deptford Solar (4.1 megawatts, Gloucester County), Deptford Landfill Solar (10 megawatts, Gloucester County), and North Jersey District Water Supply Commission (10 megawatts, Passaic County). The awards were made under the state’s Competitive Solar Incentive program.

Solar For Renters, Homes Without Roofs – The board approved a 3,000-megawatt expansion of New Jersey’s Community Solar Energy Program: the largest capacity allocation in state history. Community solar lets residents, especially renters and those without suitable rooftops, subscribe to off-site solar projects and receive bill credits – typically cutting their electric bills by 15 to 25 percent. The new capacity will be enough to provide clean energy savings for about 450,000 subscribers. It will be distributed among the major electric utilities as follows: 1,555 megawatts for PSE&G, 787 megawatts for Jersey Central Power & Light, 324 megawatt for Atlantic City Electric, 51 megawatts for Rockland Electric, and 300 megawatts reserved for landfill projects.

In 2024, New Jersey was the 14th-largest producer of electricity from solar energy among the states and ranked 7th in small-scale solar power generation. Overall, solar energy accounted for about 8 percent of New Jersey's total in-state electricity generation in 2024, according to the U.S. Energy Information Administration.

Solar power remains a much smaller part of the overall mix at PJM Interconnection, the regional transmission organization that coordinates the movement of wholesale electricity in New Jersey and 12 other states, contributing to about 2 percent of the power generated in 2024, according to Monitoring Analytics.

PJM announced the results of its 2027-2028 base residual auction in December, reporting that the cleared resource mix included 43 percent natural gas, 21 percent nuclear, 20 percent coal, 5 percent demand response, 4 percent hydro, 2 percent wind, 2 percent oil and 1 percent solar.

BATTERY POWER

The NJBPU also cleared the way for three, large battery storage projects on Thursday.

In addition to solar power, Sherrill’s plan to beef up New Jersey’s electricity capacity also includes more battery energy storage systems. These devices enable energy from renewables – such as solar and wind – to be stored and released when the power is needed most.

The NJBPU approved incentives for three large battery storage projects under the first solicitation of the Garden State Energy Storage Program (GSESP), totaling 355 megawatts of capacity:

• Woods Landing Storage LLC (200 MW, Sayreville, Middlesex County)
• Two Rivers Energy Storage LLC (150 MW, Ridgefield, Bergen County)
• North America Energy Storage Corp. (5 MW, Bordentown, Burlington County)

“These battery projects will provide flexible, on-demand power to the PJM regional grid, helping to ease the capacity shortage that has contributed to higher electricity prices across the region,” the NJBPU reported.

Incentive payments for these projects will come from existing Societal Benefits Charge funds, so no new rate increase will be required to support these projects, the NJBPU said.

The board also launched Phase 1, Tranche 2 of the GSESP, opening a second competitive solicitation for 645 MW of additional storage capacity. According to the board, this fulfills Sherrill’s second executive order, which directed the agency to open the second round of solicitations within 45 days.

Once Tranche 2 is complete, New Jersey will reach the full 1,000 MW transmission-scale storage target required by law – and move significantly closer to the broader goal of 2,000 MW of storage by 2030, the board reported.

“Solar and battery storage are the fastest and most cost-effective ways to build new electricity generation,” NJBPU president Christine Guhl-Sadovy said.

“Today’s actions advance Gov. Sherrill's clean energy goals while continuing the board’s commitment to balancing affordability and promoting clean, in-state energy resources,” Guhl-Sadovy said.

The governor said Thursday’s moves by the NJBPU will put the state on a path to more energy independence.

“States that invest in energy infrastructure today will have lower costs and greater reliability tomorrow – and New Jersey is going to lead the way,” Sherrill said. “By investing in battery storage, solar, and grid modernization, we’re building an energy system that is ready for the future, and more affordable and reliable for New Jersey families and businesses.”

>> Read More: 6 Executive Orders From NJ’s New Governor – And What They Mean

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