Understanding the Complexities of Property Tax for Battery Energy Storage Systems

The property tax assessment of battery energy storage systems (BESSs) varies by jurisdiction, and many jurisdictions have yet to determine how to assess these assets. With the battery storage industry being so specialized, companies must consider the physical costs associated with installation, any regulatory requirements, and other unique factors when accounting for property taxes. It is important to understand how taxation laws and processes may change over time, especially as the industry evolves.

Corporations who invest in BESSs must keep up with changes to ensure that they are accurately reporting their assessments and paying applicable taxes. Understanding how property taxes can impact a business’s bottom line is essential for making informed decisions when investing in the battery storage industry. Some of the factors that influence property tax amounts include location, local tax rates, assessed value, and in some instances, whether the BESS is associated with a solar installation. By knowing the different taxes associated with battery storage, including applicable property taxes, businesses can maximize their investments and ensure compliance with all relevant laws.

Ryan has a proven track record with national portfolios in the battery storage industry and consistently displays the requisite mix of technical expertise, market expertise, and the ability to respond quickly in any situation.