Mayor Kerry Thomson

Page last updated on April 22, 2025 at 4:50 pm

The Bloomington Green Home Improvement Program provides rebates to help Bloomington homeowners complete energy efficiency upgrades, install renewable energy sources, reduce their utility bills, and increase the environmental sustainability of their houses. This program advances the City of Bloomington’s goals to improve environmental and economic equity in Bloomington and to reduce the community-wide consumption of fossil fuel energy sources. 

 

Applications are open! Click here to access the application on CiviForm.

 

Rebates are issued based on household income and project type.

  • The general population qualifies for a rebate equal to 25% of the project cost, up to the maximum rebate amount in the table below.
  • Low income homeowners qualify for a rebate equal to 40% of the project cost, up to the maximum rebate amount in the table below.
  • The minimum rebate is $500 for any project, and therefore the minimum project size is $2,000 for the general population and $1,250 for low income. 

 

Table showing minimum and maximum rebate amounts.

 

 

 

 

 

 

 

 

 

 

 

 

 

*The rebate for solar panels for the general population is 20%

**Solar and battery rebates may be combined if installed simultaneously

***Electrical panel rebates are granted only if an upgrade is necessary to install another qualifying project

 

Eligibility and Program Rules

 

To qualify for a rebate: 

  • The property must be within Bloomington city limits.
  • Applicants must own and occupy the property. Rental properties are not eligible for BGHIP.
  • The project must be a qualified energy efficiency or renewable energy project (see project descriptions below).
  • One rebate is allowed per household per year. Exceptions include: a simultaneous installation of solar panels and battery energy storage, which qualifies for both rebates; an electrical panel upgrade required by an approved project, which qualifies for both rebates.
  • City of Bloomington rebates may be combined with state and utility rebates and federal tax credits, as long as the total rebates and tax credits do not exceed the project cost. More information is provided below.
  • Applications should be submitted before starting home improvements to ensure funding is available for the project. However, applications for completed projects are accepted with a paid invoice dated 2025.
  • Rebates are available on a first-come, first-served basis until all program funding is depleted. Rebates are granted as a reimbursement after projects are paid and complete.
  • Projects must be completed by a contractor. Quotes and receipts must be provided. Quotes must show any point-of-sale rebates. Self-performed projects do not qualify.
  • Rebates will be given using Electronic Funds Transfer to a bank account.
  • Applicants agree to provide utility bills for three months following project completion and the same three calendar months in the previous year. The Sustainability Program Coordinator will reach out to collect them when due. This information allows the City to measure the program impact.

 

Approved Project Types

 

Rebates apply to the following set of qualifying projects. Rebates are calculated based on the total cost of the products and labor.

 

Renewable Energy

 

Electrification

 

Weatherization

 

Additional Financial Incentives to Combine with BGHIP Rebates

Interested homeowners are encouraged to combine City of Bloomington BGHIP rebates with other rebates and tax credits. All qualified projects are eligible for at least one other financial incentive from state, federal, or local utility sources which will significantly decrease the final cost. Although highly recommended, please note that applicants are not required to use any of these additional programs in order to receive a City of Bloomington rebate.  

 

View the attachments at the bottom of this webpage to see how BGHIP rebates, combined with other rebates and tax credits, can heavily discount your home improvement project.

 

Indiana Energy Saver Program

 

In 2025, the Indiana Office of Energy Development (IOED) will launch the Indiana Energy Saver program to distribute home energy rebates from funding provided by the Inflation Reduction Act of 2022. Indiana home energy rebates will be applied automatically as a discount at the point of sale during the contractor transaction. State rebate amounts depend on household income and project type. Low-income households may qualify for a rebate up to 100% of the project cost.

 

The Indiana Energy Saver Program has two components:

  • The Home Efficiency Rebates (HOMES) program is for energy efficiency upgrades and retrofits to residential buildings. A qualifying project can include a combination of energy-efficient products and building material installations that together must save at least 20% of your household's energy usage. This program involves a whole-home energy assessment with targeted recommendations.
  • The Home Appliance Rebates (HEAR) program is for low- and moderate-income households to purchase energy efficient equipment. The approved equipment that qualify both for HEAR and BGHIP rebates are heat pump water heaters, HVAC heat pumps (electric only), and insulation or sealing.

 

The HOMES or HEAR rebates can be combined with the BGHIP rebate as long as the combined rebate total does not exceed the project cost. When the state program launches, apply through the Indiana rebate program website to be paired with an approved contractor, and apply for BGHIP after your state rebate has been quoted.

 

View the cost estimate tables linked here and at the bottom of the webpage to learn how Indiana rebates could impact the cost of your project.

 

Duke Energy Rebates & Home Energy House Calls

 

Applicants that are interested in energy efficiency and weatherization projects are encouraged to utilize the Duke Energy Smart $aver program in order to streamline project eligibility and verification requirements, as well as to receive Duke Energy rebates. The Smart $aver program quickly connects applicants to a contractor that has been pre-approved by Duke Energy. 

 

The contractor will ensure that projects meet enhanced efficiency standards and will submit paperwork to Duke Energy for the rebate. Participants can choose whether the rebate is returned as a prepaid physical card via mail, or a digital card via email. Participants will receive their rebates from Duke Energy within 4-6 weeks after their contractor submits the required paperwork. 

 

Applicants approved for the Indiana Energy Saver Program may be able to receive a rebate from Duke if their assigned contractor participates in the Duke contractor network.

 

View the cost estimate tables linked here and at the bottom of the webpage to learn how Duke Energy rebates may impact the cost of your project.

 

Additionally, single-family homeowners can qualify for a free in-home energy assessment from Duke through the Home Energy House Call program. Duke will produce a personalized report that can help identify energy efficiency options for your home. Review the program website and see if this is an option that can help you decide on a BGHIP project.

 

Federal Home Energy Tax Credits

 

The Inflation Reduction Act of 2022 expanded the home energy tax credits available for homeowners. The Energy Efficient Home Improvement Credit, or 25C tax credit, allows homeowners to claim 30% of qualified expenses including energy efficiency improvements, home energy audits, and electrical upgrades. The Residential Clean Energy Tax Credit, or 25D tax credit, allows homeowners to claim 30% of expenses associated with clean energy upgrades, such as solar panels, geothermal, and batteries. BGHIP rebate recipients should consult a tax professional and file a claim for the tax credit with the IRS after their project is installed.

 

View the cost estimate tables linked here and at the bottom of the webpage to learn how tax credits may impact the cost of your project. These tables are not meant to be used as tax advice.

 

Indiana Renewable Energy Property Tax Exemption

 

In Indiana, the assessed value of renewable energy systems, such as solar panels and geothermal heat pumps, are exempt from property taxes. This prevents residents from paying taxes on property value increases due to renewable energy installations. Rebate recipients should file a state tax exemption form with the Monroe County Auditor after their energy project is installed.

 

Steps to Participate in BGHIP

 

  1. Choose a green home improvement project and obtain a contractor quote.
    • If you are using the Indiana HOMES or HEAR rebate program, use their website to apply for the program and find an approved contractor.
    • If you are utilizing the Duke Energy Smart $aver rebate program, use their “Find a Contractor” website for finding an approved contractor.
    • Otherwise, if you need assistance on where to start looking, find accredited contractors through the Better Business Bureau. Request multiple quotes from different contractors in order to get the best price.
    • Homes in a historic district may have restrictions against changes to the exterior of the building. You must contact the City of Bloomington Historic Preservation Program Manager (noah.sandweiss@bloomington.in.gov) to confirm your historic district guidelines because you may need to submit an application for a Certificate of Appropriateness before moving forward with BGHIP.
  2. Apply for the Bloomington Green Home Improvement program using the online application found on the City of Bloomington CiviForm website.
    • Upload a project quote to the application. The quote must be drafted by the contractor and include:
      • the address of the project
      • homeowner’s name
      • project description, including model numbers and product details
      • anticipated installation date
      • any anticipated state or Duke Energy rebate amounts, if applicable
      • total project cost
    • You may upload an invoice for a completed project at this stage, if the installation was completed in 2025.
    • If your household qualifies as low income, you will be asked to securely provide proof of income (see details for low income qualifications below).
  3. The City of Bloomington Sustainability Program Coordinator will reach out to confirm your eligibility and provide an estimated City rebate amount.
  4. Proceed with the scheduled project installation.
    • If you use the Indiana HOMES or HEAR program, the contractor will apply the state rebate as a discount at the point of sale.
    • If you utilize a Duke Smart $aver approved contractor, they will submit the project completion documents to Duke Energy on your behalf in order to receive the Duke rebate.
  5. Once the project is complete, send the following required documentation to the City in order to receive the rebate:
    • Signed project contract, invoice, or equivalent document describing the work completed. The document must include:
      • the address of the project
      • homeowner’s name
      • project description, including model and product details
      • installation date
      • the total cost
      • Indiana state or Duke rebate discounts, if applicable
      • confirmation that the project is paid in full
    • At least one photo of the project
    • For solar installations, a completed interconnection agreement with Duke Energy (to verify the system installation is complete)
    • Complete a Substitute W-9 and Bank/Electronic Funds Transfer form for payment (provided by the program coordinator)
  6. The City will request your signature on a rebate agreement form, which will be sent to your email from DocuSign, an online document signing platform used by the City. Depending on the timing, it will take approximately 4–6 weeks to receive the BGHIP rebate.
    • The rebate amount will be calculated based on the paid invoice.
  7. For qualifying projects, apply for the federal Energy Efficient Home Improvement Credit, the Residential Clean Energy Tax Credit, or the Indiana renewable energy property tax exemption.

 

Low Income Applicants

 

Low-income-qualified homeowners are eligible for higher BGHIP rebates from the City of Bloomington. To qualify for low income rebates, the following income criteria must be met: 

 

 

In order to qualify, applicants will be required to submit proof of income to the City. The following documents are accepted: 

 

  • 2024 W-2, 1040, or 1099 income tax documents
  • Social Security or Welfare: Dated check or signed and dated award letter
  • Award Letter or Proof of Participation in other programs that meet the above income requirements including: SNAP, LIHEAP, BHA Rental Assistance, Workforce Rental Housing, etc. 

 

Low income applicants seeking a loan for a project should contact one of the City’s financial partners listed below to receive more information. 


View the cost estimate tables linked here and at the bottom of the webpage to learn how BGHIP rebates make your home improvement project more affordable.

 

Financing Opportunities

 

For residents that are interested in financing options, the City of Bloomington has partnered with Clean Energy Credit Union and Hoosier Hills Credit Union to offer 0.5%-bought down interest rate loans to help offset the burden of larger projects. 

 

 

Additionally, the Indiana Energy Independence Fund (IEIF), Indiana's nonprofit green bank, will launch the Smart-E Loan for homeowners to finance their energy efficiency home upgrades. They offer low-interest, zero-down-payment loans with flexible terms to low- and moderate-income and credit-challenged borrowers. Loan recipients must use an IEIF approved contractor to participate. More information will become available when this financing option launches in the area.

 

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