Residential Rebates and Financing

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. Eligible home improvement projects include: solar panels, battery energy storage systems, level 2 electric vehicle chargers, HVAC heat pumps, attic insulation and sealing, EnergyStar air conditioners, heat pump water heaters, doors, and windows. 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 (IOED) launched 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.

Apply through the Indiana rebate program website to be paired with an approved contractor.

Call the Indiana Energy Saver hotline at 855 4-IN SAVES (855 446-7283) for any questions related to the program.

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.