Public Service Electric & Gas Co. (PSE&G), a subsidiary of Public Service Enterprise Group Inc. (NYSE: PEG), has launched the GridSmart Battery Program, a residential pilot offering a $5,000 incentive toward the purchase and installation of qualifying home battery energy storage systems.

Participants may also access up to $25,000 in interest-free, on-bill financing for remaining installation costs. The program is open to PSE&G residential electric customers in New Jersey.

Battery systems enrolled in the program may be used during scheduled GridSmart Battery Events, in which the home battery temporarily powers the residence to reduce electricity drawn from the grid during periods of peak demand. Customers will receive advance notice before any such event.

PSE&G describes the program as part of a residential Virtual Power Plant (VPP) pilot, in which distributed customer-owned batteries are coordinated to support grid reliability and flexibility. The utility says potential grid benefits include deferring transmission or distribution infrastructure upgrades and reducing peak power demand.

The pilot aligns with a broader state effort: in July, the New Jersey Board of Public Utilities launched a stakeholder process to develop a statewide VPP framework. PSE&G says data gathered through the GridSmart program will help inform future VPP policy in the state.

"Through the GridSmart Battery Program, we're giving customers another way to invest in their homes by adding reliable backup power while helping us better understand how residential battery storage can support a more reliable electric grid," said Lauren Thomas, Vice President of Clean Energy Solutions at PSE&G.

PSE&G is New Jersey's largest electric and gas delivery utility. Information about the GridSmart Battery Program, including qualifying battery systems and eligibility requirements, is available on the company's website.