Indiana Heat Pump Rebates
Under the Indiana Energy Saver Program, Indiana heat pump rebates go up to $8,000 per unit or up to $18,000 for whole-home upgrades. You can also get up to $1,000 back from local electric utilities when your installed heating and cooling equipment qualifies.
Find the Indiana rebates for your ZIP code
If JavaScript is off, look for your state in the table of programs.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate open
- $4,000 through the Indiana Energy Saver Program (HOMES and HEAR)
- If your household income qualifies
- $18,000 Indiana Energy Saver Program (HOMES and HEAR)
- HEAR appliance rebates
- Open Pays as much as $8,000 toward a heat pump when income qualifies. Run by OED. Official page
- HOMES whole-home rebates
- Open Paid on the energy saved by a whole-home upgrade. Official page
- The federal 25C tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Indiana heat pump rebates
Across Indiana, state rebates cover eligible households, but a utility discount only applies when that specific company supplies your electricity.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Status | Apply |
|---|---|---|---|---|---|---|
| Indiana Energy Saver Program (HOMES and HEAR) | Everyone in the state | $4,000 or 50% of project cost | $4,000 or 50% of project cost | $1,750 discount maximum (income-qualified) | Open | Official page |
| NIPSCO Energy Efficiency Home Rebates | Served by Northern Indiana Pub Serv Co | $1,000 (16.2-17.0 SEER2: $900; 15.2-16.1 SEER2: $800) | Up to $60 | $750 | Open | Official page |
| AES Indiana Home Improvement Rebates & Instant Discounts | Served by AES Indiana | $575 instant discount (SEER2 16.15: $375; SEER2 15.2: $275) | $725 instant discount (lower tiers $100 to $525) | $600 instant discount | Open | Official page |
| I&M Instant HVAC and Water Heating Discount Program | Served by Indiana Michigan Power Co | At the point of sale, a discount is applied right away (the amount is not stated) | At the point of sale, a discount is applied right away (the amount is not stated) | At the point of sale, a discount is applied right away (the amount is not stated) | Open | Official page |
Indiana Home Energy Rebates for Lower and Middle Incomes
On May 14, 2025, the state started the Indiana Energy Saver Program with $182 million in federal funding. Right now, Indiana has both options open statewide: the appliance rebates and the whole-home rebates. Area median income drives your savings; this is the income of the middle household in your county.
Households under 150% of the county midpoint can use the Home Appliance Rebate, which never pays to replace existing electric heat. A qualifying family gets as much as $8,000 toward a space-heating heat pump, plus $1,750 toward a heat pump water heater. If a household sits under 80% of the midpoint, 100% of costs are paid, up to $14,000; middle-income homes receive 50% instead.
With the Home Efficiency Rebate, higher earners can claim between $2,000 and $4,000 if their upgrades lower energy use by 20% or more. Up to $18,000 goes to lower-income households that cut whole-home energy use by at least 35%.
Claiming Indiana Heat Pump Rebates Step by Step
Before you sign an installation contract, check whether your program requires pre-approval. You could lose the whole payment over a missed contractor rule or filing deadline.
- Before buying equipment, apply at IndianaEnergySaver.com; this lets the state verify your income and run a home energy checkup. The system must be installed by an approved contractor, who deducts the rebate from your bill; such contractors never go door to door.
- NIPSCO equipment must be bought and installed between January 1 and November 30, 2026; skip retail stores and online marketplaces. If the install happens after October 31, your form must be postmarked by November 30, 2026; otherwise apply within 60 days.
- An instant discount shows up on your invoice when you hire a participating contractor with AES Indiana or Indiana Michigan Power. If your AES Indiana contractor submits a rebate form instead, expect your check in four to six weeks.
Indiana Weatherization and State Energy Rules
Local service providers carry out the Weatherization Assistance Program, which the Indiana Housing and Community Development Authority runs. Eligibility comes from income at or under 200% of the federal poverty level, or from the Energy Assistance Program.
Electricity is already the primary heating source for about a third of Indiana households. During 2024, Indiana also ranked second in the nation for coal consumption. State appliance rebates do not pay for replacing electric heat, so homes heated with electricity have to turn to whole-home or utility programs.
Every investor-owned utility has to submit an energy efficiency plan to state regulators at least once every three years. The federal 25C tax credit, meanwhile, no longer applies to equipment installed after December 31, 2025, following Public Law 119-21.
Common Questions About Indiana Heat Pump Rebates
In Indiana, what rebates can you get at each heat pump efficiency rating?
The SEER2 number on the equipment label, which shows cooling efficiency, decides what utilities pay. With NIPSCO, a rating of 15.2 to 16.1 SEER2 earns $800, 16.2 to 17.0 SEER2 earns $900, and 17.1 SEER2 or higher earns $1,000. AES Indiana pays instant discounts of $275, $375, or $575 on those same tiers, plus $100 to $725 for mini-splits.
Can you still claim the federal heat pump tax credit in 2026?
No. For heat pumps placed in service in 2026, the federal credit is gone. Congress cut the credit short with the One, Big, Beautiful Bill, which became law on July 4, 2025. Equipment qualified only if it was installed by December 31, 2025, per IRS Fact Sheet FS-2025-05, published August 21, 2025.
How do I get a free heat pump in Indiana?
If your household earns under 80% of your county median income, 100% of qualified project costs can be covered through IndianaEnergySaver.com. Under the whole-home path, 100% of costs are covered, up to $12,000, if the upgrades lower energy use by 20% to 34%. The appliance path covers only a switch from non-electric heating, and new construction is not eligible.
For mini-splits, heat pump water heaters, and dual-fuel systems, what extra rules exist in Indiana?
A dual-fuel installation through NIPSCO lets you claim one rebate only, either for the furnace or for the heat pump, never the two together. Under NIPSCO, the $60 ductless mini-split rebate covers at most two units per address each year, and a water heater rebate pays $750. AES Indiana gives a $600 instant discount if the heat pump water heater qualifies.
Get Indiana installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.