Indiana Energy Rebates Overview
Indiana's home energy incentive landscape in 2026 is built around InHER (Indiana Home Energy Rebates), the state's IRA-funded HEAR program administered by the Indiana Office of Energy Development (OED). This program targets income-qualified households across the state with rebates for heat pumps, insulation, and water heaters.
Indiana's utility landscape is more complex than many states — the major utilities serving Indiana are Duke Energy Indiana (central and southern Indiana), Indiana Michigan Power (AEP) (northern Indiana, Fort Wayne area), NIPSCO (northern Indiana, South Bend and Gary), and Vectren/CenterPoint Energy (southwestern Indiana, Evansville). Each operates its own rebate programs.
✓ How to Apply for InHER
Contact the Indiana Office of Energy Development at energy.in.gov or call 317-234-2490. You must use a registered InHER contractor — the rebate is paid directly to the contractor after project completion. Income documentation required at application.
Indiana Utility Rebate Programs
Check your electric bill to confirm which utility serves your home — rebates are only available from your own utility
| Utility | Heat Pump | Water Heater | Insulation | Phone |
|---|
Duke Energy Indiana Central & southern Indiana | Up to $800 | Up to $350 | Up to $300 | 800-521-2232 |
Indiana Michigan Power (AEP) Northern Indiana (Fort Wayne area) | Up to $500 | Up to $200 | Up to $200 | 800-311-4634 |
NIPSCO Northern Indiana (South Bend, Gary) | Varies | Varies | Varies | 800-464-7726 |
Vectren (CenterPoint Energy) Southwestern Indiana (Evansville) | Up to $400 | Up to $200 | Up to $150 | 800-227-1376 |
Indiana Electric Cooperatives Rural Indiana | Varies by co-op | Varies | Varies | Contact local co-op |
All 10 Indiana Programs (2026–2027)
Data sourced from Rewiring America API · Verified July 2026 · Confirm at in.gov/oed, duke-energy.com, and indianamichiganpower.com
| Program | Applies To | Benefit | Income |
|---|
InHER — HEAR Heat Pump (Enhanced) Indiana OED · Rebate View Official Program → | Heat pump (ducted or ductless) | Up to $8,000 | Below 80% AMI |
InHER — HEAR Heat Pump (Standard) Indiana OED · Rebate View Official Program → | Heat pump (ducted or ductless) | Up to $4,000 | 80–150% AMI |
InHER — HEAR Heat Pump Water Heater Indiana OED · Rebate | Heat pump water heater | Up to $1,750 | Below 150% AMI |
InHER — HEAR Insulation & Air Sealing Indiana OED · Rebate | Insulation, air sealing | Up to $1,600 | Below 150% AMI |
Duke Energy Indiana — Cold Climate Heat Pump Duke Energy · Rebate View Official Program → | Cold climate heat pump (16+ SEER2) | Up to $800 | Duke electric customers |
Duke Energy Indiana — Standard Heat Pump Duke Energy · Rebate View Official Program → | Standard air-source heat pump | Up to $300 | Duke electric customers |
Indiana Michigan Power (AEP) — Heat Pump Indiana Michigan Power · Rebate View Official Program → | Air-source heat pump | Up to $500 | AEP electric customers (N. Indiana) |
NIPSCO — Heat Pump Rebate NIPSCO · Rebate View Official Program → | Ducted and ductless heat pump | Varies by tier | NIPSCO customers (N. Indiana) |
Federal 25C — Heat Pump Tax Credit IRS (Form 5695) · Tax Credit View Official Program → | Heat pump (all types) | 30%, up to $2,000/yr | No income limit |
Federal 25C — Heat Pump Water Heater IRS (Form 5695) · Tax Credit | Heat pump water heater | 30%, up to $2,000/yr | No income limit |
FAQ — Indiana Energy Rebates
Who qualifies for InHER in Indiana?
InHER Enhanced Rebates are for households below 80% of Area Median Income. Standard Rebates are for households between 80–150% AMI. Both homeowners and renters of single-family homes may qualify. Federal assistance program participants (SNAP, Medicaid, SSI, Section 8) typically qualify automatically — ask the Indiana OED for the automatic qualification list.
What utility serves my Indiana home?
Indiana has four major electric utilities. Duke Energy serves central and southern Indiana including Indianapolis, Bloomington, and Terre Haute. Indiana Michigan Power (AEP) serves the Fort Wayne area and northeastern Indiana. NIPSCO serves northern Indiana including South Bend, Gary, and Michigan City. Vectren (CenterPoint Energy) serves the Evansville area in southwestern Indiana. Your utility name appears on your electric bill.
Can I get InHER and a Duke Energy rebate on the same project?
Yes — InHER and Duke Energy rebates are separate programs and can be combined as long as total incentives don't exceed the project cost. An income-qualified Duke customer in Indiana can stack InHER $8,000 + Duke $800 + 25C $2,000 = $10,800 total savings on a qualifying heat pump installation.
Does Indiana have a weatherization program for low-income households?
Yes — the Indiana Weatherization Assistance Program (WAP) provides free energy efficiency improvements for very low-income households (at or below 200% of the federal poverty level). This includes insulation, air sealing, heating system repair, and health and safety measures. Contact your local community action agency or call 317-232-7777.
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More Energy Rebate Guides
This guide is for educational purposes only. Program details change frequently. Always verify with in.gov/oed, duke-energy.com, indianamichiganpower.com, or nipsco.com before starting a project. Data sourced from Rewiring America API, verified July 2026.