Page last updated on January 10, 2025 at 3:17 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.
Home Energy Savings from the Inflation Reduction Act
The Inflation Reduction Act of 2022 increased 25C tax credit values and allocated High-Efficiency Electric Home Rebate Act (HEEHRA) funding to state governments for rebate programs, enabling communities to make homes more energy efficient, upgrade to electric appliances, and cut energy costs.
- The Internal Revenue Service administers the 25C residential energy efficiency tax credit:
- The Energy Efficient Home Improvement Credit equals 30% of qualifying energy efficiency improvements and residential energy property expenses.
- Projects that may qualify for 25C include:
- building envelope components: EnergyStar Most Efficient certified exterior doors and windows, insulation and air sealing that meet International Energy Conservation Code standards
- home energy audits: using a US Department of Energy certified auditor
- residential HVAC energy property and energy appliances: air conditioners, water heaters, furnaces, heat pumps, biomass stoves/boilers that meet or exceed the Consortium for Energy Efficiency highest efficiency tier (not the advanced tier)
- The Indiana Office of Energy Development administers HEEHRA funding from the Inflation Reduction Act for its state-specific programs:
- The HOMES program offers rebates for energy efficiency upgrades to residential buildings. Availability expected in early 2025.
- The HEAR program offers rebates for high-efficiency appliance upgrades for low- and moderate-income households. Availability expected in early 2025.
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.
Residential Clean Energy Tax Credit
The Internal Revenue Service administers the Residential Clean Energy Tax Credit, which is equal to 30% of the cost of a solar installation and associated equipment, such as solar energy storage batteries, racking equipment, transformers, and other prorated indirect costs. The tax credit also applies to solar water heaters, wind, geothermal heat pumps, fuel cells or battery storage technology.
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.