Battery Energy Storage Systems

Battery energy storage systems store energy and then release the stored energy to the electric grid. 

The taxability of the personal property of a battery energy storage system depends on the way the battery energy storage system is connected to the electric grid. The real property of a battery energy storage system is subject to property tax, regardless of how the system is connected to the electric grid.

The battery energy storage system is subject to personal property tax if it is part of an electric generating, transmission, or distribution system.

Property tax is determined, in part, on the market value of the property. The county, or local assessor, determines the market value (assesses) for most of the property in Minnesota. The Minnesota Department of Revenue determines the market value of property (assesses) that is part of an electric, light, or power company engaged in the generation, transmission, or distribution of electric power. 

The treatment of the battery energy storage systems depends on the owner and the configuration of the system to the electric grid. 

For questions on property that is part of an electric, light, or power company engaged in the generation, transmission, or distribution of electric power, contact Revenue’s State Assessed Property Section at sa.property@state.mn.us. For questions on property that is not part of an electric light or power company, contact the county assessor where the property is located.