Energy (Electric Grid)

This bill requires New Jersey's Board of Public Utilities (BPU) to study and implement technical solutions that enable more distributed energy sources - like rooftop solar and small-scale storage - to connect to the electrical grid. Specifically, it directs the BPU to evaluate methods such as allowing electricity flow between grid segments, requiring solar inverters to manage "reactive power" (non-working electricity due to waveform misalignment), and enabling weather-responsive solar output control. Within one year, the BPU must submit a report with recommendations, followed by pilot programs to test solutions before potential statewide rollout. The bill directly affects grid operators, renewable energy developers, and homeowners with solar systems by streamlining interconnection processes.

S 618 requires New Jersey's Board of Public Utilities (BPU) to update interconnection standards for Class I renewable energy systems (like solar, wind, and small-scale geothermal) within 18 months, aligning with national model standards unless impractical. It also mandates a fixed "grid modernization fee" paid by renewable project owners to utilities, calculated per kilowatt of capacity - with a $50/kW cap for small residential systems under 10 kW for the first three years. The bill establishes maximum interconnection cost limits, allows utilities to recover excess costs through rate adjustments, and requires a BPU report on economic impacts and progress toward state clean energy goals. This directly affects renewable energy project developers and electric utilities managing grid connections.