Indiana Heat Pump Rebates
Stackable incentives available to Indiana homeowners installing a qualifying heat pump in 2026.
Rebate data is re-verified against primary sources every two months.
In plain terms
A typical Indiana homeowner can get up to $5,000 back from 2 programs that are open right now. Households with lower income can add up to $8,000 on top of that.
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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 whole-home rebates that scale with modeled savings — $2,000–$4,000 for households at or above 80% AMI and $12,000–$18,000 for households below 80% AMI. 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, several of which (for example Harrison REMC) run their own heat pump rebates. NIPSCO's 2026 heat pump rebate window closes November 30, 2026. Duke Energy Indiana's Smart $aver program pays $400–$700 to replace a heat pump, $800 to convert from electric resistance heat, and up to $2,500–$3,000 for cold-climate or dual-fuel conversions of homes that already have a heat pump. CenterPoint Energy Indiana moved its 2026 heat pump discounts to unpublished midstream (distributor) pricing, so confirm that amount with your contractor. Indiana Michigan Power runs point-of-sale HVAC instant discounts through electricideas.com but does not publish the amounts.
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 based on modeled energy savings ($2,000-$4,000 for households at or above 80% AMI, $12,000-$18,000 below 80% AMI). 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 of $275-$575 on ducted heat pumps (up to $725 for high-efficiency ductless mini-splits) 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 utility rebates plus either HEAR (households below 150% AMI) or 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)
$4,000Whole-home performance rebate based on modeled energy savings, administered by the Indiana Office of Energy Development. The $4,000 shown is the top of the market-rate tier: households at or above 80% AMI receive $2,000 (20-34% savings) or $4,000 (35%+ savings), capped at 50% of project cost, while households below 80% AMI can receive $12,000 (20-34% savings) or $18,000 (35%+ savings), up to 100% of project cost. A heat pump is one measure that can drive those savings; this is not a heat-pump-specific rebate.
Duke Energy Indiana Smart Saver Heat Pump Rebate
$800Smart $aver rebate submitted by a participating contractor, paid as a prepaid card, for projects completed after July 31, 2025. Replacing an air-source heat pump pays $400 (15.2 SEER2) or $500 (16+ SEER2) on failure, or $600–$700 for early replacement; ducted or ductless mini-splits (18 SEER2, 9.0 HSPF2, serving 1,000+ sq ft) pay $500–$700. Converting an electric furnace, baseboard or radiant system to a heat pump pays $800. Homes that already have a heat pump with electric strip heat can get larger conversion rebates: $2,000–$2,500 for a cold-climate heat pump (COP 2.0) or ducted mini-split, $2,300 for geothermal and $2,500–$3,000 for dual fuel. Program-specific duct sealing is required with replacements. The $800 shown is the electric-heat conversion figure.
AES Indiana Home Improvement Heat Pump Rebate
$725Instant discount deducted from the invoice when installed by a member of the AES Indiana Quality Contractor Network. Ducted air-source heat pumps earn $275 (15.2 SEER2), $375 (16.15 SEER2) or $575 (17.1+ SEER2, all with EER2 above 9.975); the $725 maximum applies only to ductless mini-split heat pumps at 23+ SEER / 9+ HSPF2, with lower mini-split tiers starting at $100.
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 purchased and installed January 1 through November 30, 2026; requires an active NIPSCO residential electric account. The application and invoice must be postmarked within 60 days of installation, and for work completed after October 31, 2026, no later than November 30, 2026. Ductless mini-splits only get up to $60, and dual-fuel customers may claim either the heat pump or a furnace/boiler rebate, not both.
CenterPoint Energy Indiana Heating & Cooling Rebate
$450For 2026, CenterPoint Energy Indiana no longer pays heat pump, central AC or ductless mini-split rebates through its mail-in application; those discounts are delivered only through participating midstream distributors and contractors at the point of sale, and the utility does not publish the amounts. The mail-in program still pays a $50 air-source heat pump tune-up and $500 for a heat pump water heater. Ask your contractor whether they participate in the CenterPoint Indiana midstream HVAC program before signing.
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 instant discount for a ducted heat pump at the 16.15 SEER2 tier is $375 (the $725 maximum is reserved for 23+ SEER ductless mini-splits). Combined: $6,900 HEAR + $375 AES = $7,275 in stack against $13,800. Net out-of-pocket: $6,525. 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. At the quote stage he confirms his contractor belongs to both the Indiana Energy Saver Qualified Contractor Network, which applies the HEAR discount at install, and the AES Indiana Quality Contractor Network, which deducts the AES instant discount from the invoice.
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 Rebateexcluded — other utility's customers only
- Duke Energy Indiana Smart Saver Heat Pump Rebateexcluded — other utility's customers only
- CenterPoint Energy Indiana Heating & Cooling Rebateexcluded — other utility's customers only
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.
If you can't afford a replacement in Indiana
Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:
- Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
- LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; Indiana LIHEAP contacts.
- USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
- Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in Indiana currently have funds.
Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.