City of Bloomington Offers Incentives for Homeowners Investing in Solar and Energy Efficiency

Applications are open for the 2025 Bloomington Green Home Improvement Program (BGHIP), a rebate program that supports Bloomington homeowners who install clean energy and energy efficiency upgrades. The City is offering rebates for solar panels, battery energy storage, level 2 EV chargers, heat pumps, energy-efficient heating and cooling systems, energy-efficient door or window replacements, and attic insulation projects. This program was created to advance 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.

Rebate amounts depend on income and project type. The general population qualifies for a rebate of 25% of the project cost, up to a maximum amount based on the project type. Low-income applicants are eligible for larger rebates of 40% of the project cost, up to a maximum amount. For example, a low-income household can receive up to $10,000 to install solar panels. Details on rebate amounts are available on the BGHIP website.

Residents who own and occupy their home within Bloomington city limits may submit an application found on the City’s BGHIP website. Rebates are awarded to those who qualify on a first-come, first-served basis. It is advised to apply for the rebate prior to beginning work on the project to ensure funding is available. Applications require a project quote from a contractor. Projects already completed in 2025 qualify for the rebate, as well. Rebate recipients will be reimbursed when a completed invoice is submitted to the City.

Interested applicants are encouraged to seek other financial incentives, which can be combined with the BGHIP rebate to reduce project costs. Duke Energy offers rebates through the Smart $aver program for eligible energy efficiency upgrades. Federal tax credits, including the Energy Efficient Home Improvement Credit and the Residential Clean Energy Tax Credit, allow homeowners to claim 30% of qualifying project expenses. The Indiana Office of Energy Development plans to launch the Indiana Energy Saver Program in 2025 to distribute HOMES and HEAR home energy efficiency rebates from funding provided by the Inflation Reduction Act of 2022. Certain expenses for low-income households qualify for a rebate that covers 100% of the project cost through the Indiana Energy Saver Program. 

In addition, The City of Bloomington has partnered with Clean Energy Credit Union and Hoosier Hills Credit Union to offer loans with a 0.5% bought-down interest rate for BGHIP rebate recipients to help offset the cost burden of larger projects.

“The City of Bloomington is committed to promoting clean energy and driving down greenhouse gas emissions in our community,” said Jolie Perry, Sustainability Program Coordinator. “Powering our built environment continues to be the largest source of emissions in Bloomington, and with BGHIP, we want to support residents who do their part to reduce their homes’ emissions. Also, the solar installations and energy efficiency improvements funded by BGHIP will help to reduce residents’ cost of living by decreasing their utility bills.”

For more information on the Bloomington Green Home Improvement Program, visit the program website at bloomington.in.gov/sustainability/bghip. For information on the City’s sustainability efforts, Climate Action Plan, and greenhouse gas emissions reports, visit our Sustainable Bloomington Website and Bloomington’s Climate Action Dashboard.