Indiana Heat Pump Rebates

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 Indiana-specific Smart Saver amounts still could not be confirmed against an Indiana-scoped primary document as of September 2026, and CenterPoint Energy Indiana moved its 2026 heat pump discounts to unpublished midstream (distributor) pricing — verify both directly with your contractor.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 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 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 state HEAR plus utility plus (for income-qualified) HOMES.

Indiana rebate programs

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. 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

How to claim each rebate

1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
2. 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.
3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
4. 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.

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