City of Boulder - Solar and Battery Sales and Use Tax Rebate
You can receive a rebate of approximately 15% of the sales and use tax you paid on your solar PV, solar water heating, or solar pool heating system. Within one year of the city's final inspection, submit an application (available from the City of Boulder) along with the required immigration form to claim your refund; the average rebate for a typical 4.5 kW PV system is about $140.
Boulder customers purchasing solar systems benefit from a sales tax rebate program that returns approximately 15% of taxes paid, which can enhance project appeal. The program applies to PV, solar water heating, and solar pool heating installations for both residential and commercial sectors; ensure customers understand they must apply within one year of final city inspection and submit required immigration documentation.
The program rebates approximately 15% of city sales and use taxes collected on solar installations (35% of unrestricted tax revenues), with applications processed after final inspection. Roughly 65% of unrestricted revenues fund the companion Solar Grant Program for nonprofits and income-qualified homeowners, creating a two-tiered incentive structure. The program covers PV, solar water heating, and pool heating across residential and commercial sectors and requires immigration form compliance per House Bill 06S-1023.
Program details
- Program ID
- 4082
- Last updated
- 10/6/2026
Eligibility
- Sectors
- commercial residential
- Technologies
- solar water heat solar photovoltaics solar pool heating lithium-ion
Program summary
In 2006, the City of Boulder established a solar sales and use tax rebate for photovoltaic (PV) and solar water heating installations. In April 2026, the City expanded eligibility to battery systems. Solar or battery system owners may receive a rebate (essentially a tax refund) drawn from the unrestricted tax revenues collected from solar energy sales.
Out of the sales and use taxes paid to the City of Boulder for solar projects, approximately 55% of revenues go to restricted funds. Within one year of the city’s final inspection, project owners can apply to receive a refund of 35% from the amount paid to unrestricted (general) funds, making the value of the refund about 15% of the city sales and use tax paid. The average rebate is approximately $140 for a 4.5 kW photovoltaic system.
The remaining 65% of the unrestricted revenues are used to fund the Solar Grant Program. The Solar Grant Program funds solar energy systems for local nonprofit organizations and income-qualified homeowners.
An application for Boulder's Solar and Battery System Sales and Use Tax Rebate is available here, and an immigration form must be completed and returned with all applications to comply with House Bill 06S-1023.
Grant Criteria can be found here.
Contact & resources
- Contact email
- bonnellj@bouldercolorado.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
