Battery money in New Jersey in 2026
Each card names the fact we keep on file, with the date we last read the official page.
PSE&G GridSmart Battery Program
An instant rebate on the contractor's invoice, plus up to $25,000 of interest-free repayment on your bill. For PSE&G electric or dual-fuel customers. New installs only.
Garden State Energy Storage Program
The state released a plan for about 150 megawatts of storage that includes options for home batteries. It has no amounts or start date yet.
Federal 25D battery credit
The 30% credit does not apply to batteries paid for after December 31, 2025.
JCP&L and Atlantic City Electric are not on the list. On the pages we read, neither utility offers a home battery rebate. Check your electric bill, because the answer depends on the name printed there.
What GridSmart asks of you
The rebate is not free money. In return, you agree to let PSE&G run your battery during up to 100 events a year, each up to four hours, when demand on the grid is high. PSE&G sends an email before each event. If the battery falls to 20% charge, your house goes back to the grid so you keep a reserve. PSE&G says it will not call an event during an outage. You also agree to share data from the battery.
Which batteries and which homes
PSE&G lists three approved batteries: Tesla Powerwall 3, Enphase 10C and Enphase 5P. At least two Enphase 5P units are needed to reach the minimum size of 8.5 kilowatts of storage. You need a smart meter and a Wi-Fi connection. Leased batteries and batteries already in place do not qualify, and the program has a cap on total participants. The state is looking at ways to let existing batteries join later.
Does it save money?
PSE&G says plainly that the program is meant to give you backup power, and that it will not inherently save you money on bills. Customers on PSE&G's time-of-use rate may save more by charging off-peak and using the battery at peak times. Think of the rebate as lowering the price of insurance against outages, not as a way to earn a return.
How long can it run the house?
PSE&G says modern batteries can power the needs of most homes for about 11 hours, depending on size and use. That is the company's figure, not a promise for your home. Ask your contractor to list the circuits the battery will run and for how long, in writing.
Solar is optional
You can install a battery with or without solar panels. Solar hardware is not covered by the battery rebate or repayment. If you add panels, the state's solar credits and net metering apply separately. Read our solar guide to see how those work.
How to get the PSE&G battery rebate
- Check that your bill says PSE&G and that you have a smart meter and Wi-Fi.
- Pick a participating GridSmart contractor from PSE&G's list. You must use one.
- Choose one of the three approved batteries and size it for the circuits you want to run.
- Let the contractor apply for you. The rebate comes off the invoice.
- Pass the final inspection so your battery can join the program.
More for New Jersey homes
- New Jersey home rebates: every program in one place
- PSE&G rebates: every PSE&G offer
- JCP&L rebates: no battery offer, but other help
- Atlantic City Electric rebates: no battery offer, but other help
- Home solar incentives: credits and net metering
- Newark home rebates: a PSE&G city
- Jersey City home rebates: a PSE&G city
Common questions
Is there a home battery rebate in New Jersey?
Yes, for PSE&G customers: up to $5,000 through GridSmart. We found none from JCP&L or Atlantic City Electric.
Can I use a Tesla Powerwall?
Yes. Powerwall 3 is on PSE&G's approved list, along with Enphase 10C and 5P.
Can I add a battery to a system I already have?
Only new installations qualify at this time. A battery that is already installed does not.
Is the federal battery credit open?
No. It ended for spending after December 31, 2025.
Will the state add a battery program?
The state has released a proposal with options for home batteries, but it has no amounts or start date yet.
By Sam Menard. Sources, last read October 6, 2026: PSE&G GridSmart Battery Program FAQ, PSE&G GridSmart Battery Program, NJBPU energy storage proposal, IRS residential clean energy credit.