City of Boulder Expands Sales Tax Rebate to Support Battery Energy Storage Systems

Battery storage systems can help households and businesses maintain power during outages, manage energy use more efficiently and support broader grid resilience goals. The rebate aligns with the city's ongoing Power Reliability and Resilience initiative, which focuses on improving local energy reliability, strengthening infrastructure and preparing the community for increasing climate-related risks.

Prompted by a recommendation from the Boulder community, the updated ordinance expands the existing sales and use tax rebate, which refunds approximately 15% of the taxes paid for solar photovoltaic and solar thermal systems, to permanently installed battery systems.

"This was a small first step that we could take to support those in our community who want to take advantage of this technology. We appreciate the community member who brought this opportunity to our attention," said Carolyn Elam.

The ordinance also complements existing utility programs, including Xcel Energy's Medical Exemption Program, which provides support for medically qualified customers who rely on electricity for critical health needs. Battery storage systems can provide an additional layer of backup power for eligible participants and others seeking increased energy security.

Under the ordinance, taxes paid on permanently installed battery systems are eligible for the rebate beginning in April 2026. Rebates continue to be available for solar photovoltaic and solar thermal systems. The city also continues to offer solar grants for income-qualifying residents.

Community members interested in learning more about the program, installing battery storage systems or applying for the rebate can learn more on our website.