Indiana Heat Pump Rebates
Stackable incentives available to Indiana homeowners installing a qualifying heat pump in 2026.
What's available in Indiana
Indiana's 2026 incentive landscape is anchored by the $182 million Indiana Energy Saver Program administered by the Indiana Office of Energy Development, which delivers federally-funded HEAR rebates up to $8,000 for income-qualified households below 150% AMI and HOMES rebates up to $4,000 based on modeled energy savings. These state-administered rebates stack with utility rebates from the major investor-owned utilities (Duke Energy Indiana, AES Indiana, NIPSCO, Indiana Michigan Power, and CenterPoint Energy) as well as numerous rural electric cooperatives and REMCs. Indiana Michigan Power and Northeastern REMC offer additional rebates that we're still confirming for 2026.
HEEHRA in Indiana
HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Indiana is finalizing program rules.
How heat pump rebates work in Indiana
Indiana's 2026 incentive landscape is anchored by the $182 million Indiana Energy Saver Program administered by the Indiana Office of Energy Development, which delivers federally-funded HEAR rebates up to $8,000 for income-qualified households below 150% AMI and HOMES rebates up to $4,000 based on modeled energy savings. The two programs are mutually exclusive on the same equipment per federal IRA rules — a household picks HEAR or HOMES, not both. State-administered rebates stack with utility rebates from the major investor-owned utilities (Duke Energy Indiana, AES Indiana, NIPSCO, Indiana Michigan Power, CenterPoint Energy) as well as numerous rural electric cooperatives and REMCs. Duke Energy Indiana's Smart Saver pays $500 for a heat pump replacement (Home Energy Check within 24 months required); AES Indiana offers tiered instant discounts up to $725 through the Quality Contractor Network; NIPSCO pays $800-$1,000 by SEER2 tier. The federal §25C credit expired December 31, 2025, so 2026 stacks rely on state HEAR plus utility plus (for income-qualified) HOMES.
Indiana rebate programs
Indiana Energy Saver — Home Appliance Rebate (HEAR)
$8,000Point-of-sale rebate up to $8,000 toward an ENERGY STAR heat pump for households at or below 150% Area Median Income, administered by the Indiana Office of Energy Development.
Indiana Energy Saver — Home Efficiency Rebate (HOMES)
$4,000Performance-based whole-home rebate up to $4,000 based on modeled or measured energy savings, available regardless of income with larger amounts for income-qualified households.
Duke Energy Indiana Smart Saver Heat Pump Rebate
$500$500 rebate for replacing an existing heat pump system; stacked Smart Saver measures can push the bundle toward $3,000. Requires a Home Energy Check within 24 months prior to install.
AES Indiana Home Improvement Heat Pump Rebate
$725Tiered instant discount up to $725 on qualifying air-source heat pumps when installed by a member of the AES Indiana Quality Contractor Network; eligible for equipment installed through end of 2026.
NIPSCO Residential Air-Source Heat Pump Rebate
$1,000Tiered rebate of $800 (15.2–16.1 SEER2), $900 (16.2–17.0 SEER2), or $1,000 (17.1+ SEER2) for air-source heat pumps; requires active NIPSCO residential electric service.
CenterPoint Energy Indiana Heating & Cooling Rebate
$450Up to $450 in rebates on qualifying high-efficiency heating and cooling equipment including heat pumps for CenterPoint Energy Indiana residential customers; eligibility differs for electric versus gas service.
8 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.
A worked example: heat pump install in Indianapolis
Marcus owns a 1,750 sq ft home in Indianapolis served by AES Indiana. His 20-year-old gas furnace and central AC are both end-of-life. He gets quotes for a 3-ton ducted air-source heat pump (Carrier, 17 SEER2 / 9.0 HSPF2) installed at $13,800. Because his household income is approximately 120% of Indianapolis's AMI, he qualifies for HEAR's moderate-income tier (80-150% AMI) at 50% of project cost up to $8,000. His HEAR rebate lands at $6,900 (50% of $13,800). On top of that, AES Indiana's Home Improvement rebate at the higher Quality Contractor Network tier pays up to $725. Combined: $6,900 HEAR + $725 AES = $7,625 in stack against $13,800. Net out-of-pocket: $6,175. He could have alternatively chosen the HOMES path for whole-home modeled savings up to $4,000, but HEAR's $6,900 is the better single-measure result. He coordinates with his AES-approved contractor at the quote stage to confirm both the HEAR and AES rebates will be processed at install through the Indiana Energy Saver portal.
Choosing a contractor in Indiana
Indiana licenses HVAC contractors through the Indiana Plumbing Commission for some work and through municipal building departments for HVAC-specific work — there's no single statewide HVAC license, so verify the contractor at the city or county level where the install will happen. Indiana Energy Saver HEAR requires a contractor registered with the program; ask 'are you registered with Indiana Energy Saver and set up to process HEAR at install?' before signing. AES Indiana, NIPSCO, and Duke Energy Indiana each have their own approved contractor lists for utility rebates — confirm enrollment per program. The Indiana Office of Energy Development maintains the HEAR contractor lookup at indianaenergysaver.com.
Common pitfalls for Indiana homeowners
- Trying to claim HEAR and HOMES for the same equipment. Federal IRA Section 50121 (HOMES) and 50122 (HEAR) cannot both apply to the same equipment on the same install. Indiana Energy Saver tags them with the same exclusivity group at the program level so a homeowner cannot accidentally double-dip. Choose the path that pays more for your specific install — HEAR is usually larger for single-measure heat pump installs, HOMES wins for whole-home upgrades that include insulation and air sealing.
- Missing the Duke Energy Indiana Home Energy Check prerequisite. Duke Energy Indiana Smart Saver heat pump rebates require a Home Energy Check completed within 24 months prior to install. Without it, the rebate gets denied. The Home Energy Check is free for Duke Energy residential customers and can be scheduled through duke-energy.com or by phone. Schedule it before equipment is ordered, not after install.
Estimate your net cost
Used to determine HEEHRA eligibility (under 80% area median income).
- Indiana Energy Saver — Home Efficiency Rebate (HOMES)−$4,000
- NIPSCO Residential Air-Source Heat Pump Rebate−$1,000
- AES Indiana Home Improvement Heat Pump Rebate−$725
- Duke Energy Indiana Smart Saver Heat Pump Rebate−$500
- CenterPoint Energy Indiana Heating & Cooling Rebate−$450
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.