Heat Pump Rebates & Panel Requirements in Indiana
Up to $8,900 in confirmed Indiana heat pump rebates from state and utility programs in 2026. See the full breakdown — then check whether your panel has the capacity to support the installation.
IRA 25C expired Dec 31, 2025. The federal tax credit is not available for heat pump systems installed in 2026. State and utility programs below are your primary incentives.
Serving Indianapolis, Fort Wayne, Evansville, South Bend, Carmel and all of Indiana
Available rebates in Indiana
Last verified: March 2026ESTIMATE ONLY — verify amounts and eligibility with program administrators before purchasing.
Federal — All States
EXPIREDIRA 25C Tax Credit
$0
Expired December 31, 2025. Not available for 2026 installations.
Installed before Dec 31, 2025? You can still claim it on your 2025 tax return (IRS Form 5695).
Geothermal only: Section 25D still active — 30%, no cap, through 2032.
HEEHRA — Indiana
LiveHeat Pump Rebate
$8,000
Point-of-sale — no tax liability required
First-come-first-served until funds depleted
State / Utility
Indiana Programs
Duke Energy Indiana Home Energy Improvement
$500Duke Energy Indiana
NIPSCO Residential Energy Efficiency Rebates
$400Northern Indiana Public Service Company (NIPSCO)
Confirmed maximum rebates — Indiana
HEEHRA $8,000 + state programs (IRA 25C expired Dec 2025)
Low income (<80% AMI, where applicable)
up to $8,900
ESTIMATE ONLY. Not all programs are stackable. Income verification required for HEEHRA. IRA 25C tax credit expired Dec 31, 2025 — not included in this estimate. Verify with your state energy office and program administrators before purchasing.
Indiana rebate program comparison
Last verified: March 2026Always confirm current amounts at each program's official source before purchasing.
| Program | Administrator | Heat Pump | Water Heater | Type |
|---|---|---|---|---|
IRA 25C Tax Credit EXPIRED December 31, 2025 Not available for 2026 installations | IRS (all states) | $0 | $0 | Expired |
HEEHRA Income-qualified (≤ 150% AMI) — state-administered | Indiana State Energy Office | Up to $8,000 | Up to $1,750 | Rebate (Live) |
| Duke Energy Indiana Home Energy Improvement Duke Energy Indiana residential customers. ENERGY STAR certified central ASHP. H… | Duke Energy Indiana | $500 | $200 | Rebate |
| NIPSCO Residential Energy Efficiency Rebates NIPSCO electric residential customers in northern Indiana. Qualifying ENERGY STA… | Northern Indiana Public Service Company (NIPSCO) | $400 | $150 | Rebate |
Amounts are per-project maximums unless noted. HEEHRA and state programs may stack where both are active. Program data last verified: 2026-03-25.
Incentive data verified March 2026. Programs change frequently — amounts, eligibility, and availability can change without notice. Confirm current eligibility with your state energy office before purchasing any equipment.
Indiana climate & heat pump sizing
Indiana falls in IECC 2021 Zone 5A — Cool-Humid. Cold climate — a cold-climate ASHP rated to -13°F or better is required for efficient winter operation without excessive resistance heat backup.
Typical installed cost in Indiana: $5,000–$13,000 for a whole-home air-source system (2026). Ductwork, electrical, and panel upgrades add cost.
Before any installation, an NEC 220.82 panel capacity check confirms whether your existing electrical service has headroom — potentially saving $5,000–$10,000 in unnecessary upgrades.
Indiana quick facts
Frequently asked questions — Indiana
What heat pump rebates are available in Indiana in 2026?
In Indiana in 2026, the main incentives are state and utility programs, plus HEEHRA federal rebates (Indiana's program is currently active): up to $8,000 for low-income households (< 80% AMI) or $4,000 for moderate-income (80–150% AMI). Active state/utility programs include: Duke Energy Indiana Home Energy Improvement (Duke Energy Indiana). Note: the IRA 25C tax credit expired December 31, 2025 and is not available for 2026 installations.
Do I need a panel upgrade for a heat pump in Indiana?
Not necessarily. Most 200A panels in Indiana have headroom for a heat pump under the NEC 220.82 Optional Method, which accounts for load diversity rather than simultaneous peak demand. A 100A panel is more likely to require an upgrade — especially if you also plan to add an EV charger or electric range. Our free 3-minute audit calculates your exact available capacity using the same method your electrician would use.
How much does a heat pump cost in Indiana?
In Indiana, a whole-home air-source heat pump typically costs $5,000–$13,000 installed (2026 estimates). That range includes equipment and labor; ductwork modifications, electrical work, or panel upgrades add cost. IECC Zone 5A means a cold-climate rated unit is recommended for reliable operation below 20°F. These cost 10–20% more but run efficiently to -13°F. Combined rebates can offset a portion of the total — verify program availability before purchasing.
Is the IRA 25C tax credit still available in Indiana?
No. The IRA Section 25C non-refundable tax credit expired December 31, 2025. It is not available for heat pump systems installed in 2026. If your system was installed before December 31, 2025, you can still claim it on your 2025 federal tax return (IRS Form 5695). For 2026 installations, the remaining federal incentive is HEEHRA (where your state has an active, funded program). Geothermal heat pumps may still qualify for the Section 25D credit (30%, no cap, through 2032).
What climate zone is Indiana in, and how does it affect heat pump selection?
Indiana is classified as IECC 2021 Zone 5A — Cool-Humid. This is a cool-to-cold climate. A cold-climate ASHP rated to -13°F or better is required for reliable heating without excessive auxiliary electric resistance backup.
Related Resources
Panel Capacity Guide
Can your electrical panel handle a heat pump?
Savings Calculator
Estimate annual savings for Indiana
Cold Climate Guide
Zone 5A — cold-climate rated units recommended
Thermostat Guide
Aux heat vs emergency heat settings
Contractor Directory
Find verified installers in Indiana
Compare Brands
Specs, dealer networks, and cold climate ratings
Similar Climate States
Ready to claim your Indiana rebates?
Every rebate program requires a qualifying installation. Before you schedule a contractor, confirm your electrical panel has capacity for a heat pump — free, in 3 minutes.
Up to $8,900 in confirmed Indiana rebates from state and utility programs.
Incentive data verified March 2026. Programs change frequently. Confirm eligibility with your state energy office before purchasing. ESTIMATE ONLY. Final installation results and rebate eligibility must be verified with a licensed contractor and program administrator.