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Energy-saving Incentive Programs Available to Help Renters, Landlords, and Homeowners Save Money on Utility Bills

5/21/2025

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The City of Bloomington encourages renters, landlords, and homeowners to take advantage of an opportunity to reduce their utility bills significantly by applying for the new Indiana Energy Saver program through the Indiana Office of Energy Development (IOED).

The program, which offers significant funding for energy efficiency upgrades, has two components: the Home Efficiency Rebates (HOMES) program and the Home Appliance Rebates (HEAR) program.

The 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, which together must save at least 20 percent of a home’s energy usage.

This program involves a whole-home energy assessment with targeted recommendations. Low-income households may qualify for up to 100 percent of the project cost and up to $18,000 for Energy Star-rated HVAC systems and water heaters, insulation, air sealing, duct sealing, appliances, and lighting.
The HEAR program allows low- and moderate-income households to purchase energy-efficient equipment. Residents can qualify for funding to offset the cost of heat pump HVAC, water heaters, and clothes dryers; Energy Star-certified cooktops and stoves; electric panel and wiring upgrades; and insulation, air sealing, and mechanical ventilation projects. The maximum total discount is $14,000 for all qualified projects.

State rebate amounts depend on household income and project type. Indiana home energy rebates will be applied automatically as a discount at the point of sale during the contractor transaction. 

The HOMES or HEAR rebates can be combined with the Bloomington Green Home Improvement Program (BGHIP) rebate as long as the combined rebate total does not exceed the total project cost. Once a resident applies through the Indiana rebate program website and is paired with an approved contractor, they should then apply for BGHIP after their state rebate has been quoted. 

“When residents stack incentives from the Office of Energy Development, the City of Bloomington, Duke Energy, and federal tax credits, the savings are quite substantial,” said Shawn Miya, Assistant Director of Sustainability. “Now is the best time to make these upgrades while funding lasts. When we increase energy efficiency, it not only saves us money, but also helps us to reduce our greenhouse gas emissions and improve our air quality.”

“For example, a typical heat pump HVAC system costs $10,000. When a resident who makes less than 150% Area Median Income ($$104,300) stacks all of the available incentives, it is estimated that the total amount paid could be as low as $2,275.”

For more information about the City’s ongoing sustainability and climate efforts, visit bloomington.in.gov/sustainability or the City’s climate action dashboard bloomington.climatenavhub.com.
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