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

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Friday, April 10, 2026

Media Contact:

Layra Nicli, Media Relations, City of Boulder, 303-818-4678

bouldercolorado.gov

City of Boulder expands sales tax rebate to support battery energy storage systems

BOULDER, Colo. – Boulder City Council has approved an update to the city’s sales and use tax rebate program to support battery energy storage systems. The update is intended to help community members invest in clean energy and improve power reliability.

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 supports 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 remain available for solar photovoltaic and solar thermal systems. The city also continues to offer solar grants for income-qualifying community members.

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

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