Page last updated on January 21, 2026 at 1:21 pm
This page outlines rebates, tax credits, and financing options available for residents interested in making their home more sustainable. This list will be updated to reflect changes on an ongoing basis.
Bloomington Green Home Improvement Program (BGHIP)
The City's Bloomington Green Home Improvement Program provides rebates to help Bloomington homeowners complete energy efficiency upgrades, reduce their utility bills, and increase the environmental sustainability of their houses. View the BGHIP website for more details and to apply.
Energy Efficiency Projects
The following financial incentives can be used by homeowners who are interested in pursuing energy efficiency upgrades in their homes. These upgrades can include building envelope projects, appliance upgrades, LED conversions, HVAC upgrades, and more. Homeowners can use this electrification incentive calculator by Rewiring America to estimate for how much money they may qualify.
Duke Energy Rebates
Duke Energy provides a number of rebates for home energy efficiency upgrades. The Smart $aver Home Improvement Rebate program provides money back for HVAC, weatherization, heat pumps, and pool pump projects using a Duke-approved contractor.
Additionally, Duke’s Online Savings Store offers discounted efficiency enhancing products, such as LEDs and light fixtures, smart thermostats, water fixtures, and power strips.
Duke offers a free home energy assessment. Claim a Home Energy House Call and receive a report card detailing steps to increase energy efficiency and lower your energy bill.
Federal Tax Credits for Energy Efficiency Home Improvements
The Inflation Reduction Act of 2022 implemented the expanded 25C residential energy efficiency home improvement tax credit, but the One Big Beautiful Bill Act of 2025 terminated these credits. The 25C credit can still be claimed for property installed before December 31, 2025.
State Rebates for Home Energy Savings
The Indiana Office of Energy Development administers funding from the Inflation Reduction Act for its state-specific programs, known as the Indiana Energy Saver Program.
- The HOMES program offers rebates for energy efficiency upgrades to residential buildings. Apply now.
- The HEAR program offers rebates for high-efficiency appliance upgrades for low- and moderate-income households. Apply now.
Weatherization Assistance Program
The South Central Community Action Program administers the US Department of Energy Weatherization Assistance Program, which serves low income families in Monroe County. The program offers an energy audit and furnace inspection, and uses private contractors to upgrade heat sources, install insulation, and seal homes for free. Eligibility is based on household income.
Solar and Renewable Energy Projects
The following rebates and financial incentives can be used by homeowners who are interested in pursuing renewable energy investments for their homes.
Federal Tax Credits for Residential Clean Energy
The Inflation Reduction Act of 2022 implemented the expanded 25D residential clean energy tax credit, but the One Big Beautiful Bill Act of 2025 terminated these credits. The 25D credit can still be claimed for property installed before December 31, 2025.
Renewable Energy Property Tax Exemption
In Indiana, the assessed value of renewable energy systems are exempt from property taxes. The state tax exemption Form 18865 for geothermal, solar, wind, or hydroelectric deductions must be filed with the Monroe County Auditor.
Indiana Sales Tax Exemption
Indiana’s sales tax exemption for electric generating equipment allows for the exemption of all sales tax associated with solar installation. To claim this tax exemption, you must provide Form ST-105 to the seller.
Excess Distributed Generation
If your solar panels generate more energy than you use, Duke will credit your electric bill for the electricity that goes back into the grid. This is Excess Distributed Generation, and replaces the previous net metering policies in Indiana.
Financing for Homeowners
The Indiana Energy Independence Fund is the state's nonprofit green bank offering cost-effective loans and support for home energy projects. Smart-E Loans will be available for sustainable home improvements.
Hoosier Hills Credit Union is a local financial institution offering loans for residential and commercial solar panel systems. Participants in the City of Bloomington's SEEL and BGHIP programs can apply for a lowered interest rate loan with Hoosier Hills.