Indiana's HEAR and HOMES programs launched May 14, 2025 under the Indiana Energy Saver Program, administered by the Indiana Office of Energy Development (OED). Applications are open now at IndianaEnergySaver.com. Heat pump rebates go up to $8,000; the total incentive cap is $14,000 per household. This guide covers rebate amounts, income limits by metro, the contractor enrollment process, and how to stack Indiana Energy Saver rebates with utility programs and 25C credits.
Program name: Indiana Energy Saver Program
Administrator: Indiana Office of Energy Development (OED)
Website: IndianaEnergySaver.com
Phone: 855-4-IN-SAVES (855-446-7283)
Email (program staff): rebates@oed.in.gov
Total federal funding: ~$182 million (HEAR + HOMES combined)
Launch date: May 14, 2025
Application portal: portal.indianaenergysaver.com
Indiana OED, not IHCDA (Indiana Housing and Community Development Authority), is the HEAR/HOMES administrator. Indiana's program uses a Regional General Contractor (RGC) network model — regional contractors oversee project delivery across defined service areas, with individual Qualified Contractors working under the RGC umbrella.
Rebates are applied as discounts at the time of installation — the contractor applies the rebate and submits for reimbursement through the program portal. Households must earn less than 150% AMI to qualify for any HEAR rebate. The per-measure maximums below reflect 100% coverage (≤80% AMI); households at 80–150% AMI receive 50% coverage up to the same caps.
| Measure | Max Rebate (≤80% AMI) | Max Rebate (80–150% AMI) | Notes |
|---|---|---|---|
| Heat pump HVAC (space heating & cooling) | $8,000 | Up to $4,000 (50% of cost) | ENERGY STAR certified; cold-climate qualification required in Zones 5A and 4A |
| Heat pump water heater | $1,750 | Up to $875 (50% of cost) | ENERGY STAR certified, EF ≥2.0 |
| Electric stove / cooktop / range / oven | $840 | Up to $420 (50% of cost) | ENERGY STAR certified |
| Heat pump clothes dryer | $840 | Up to $420 (50% of cost) | ENERGY STAR certified |
| Electric load service center (panel upgrade) | $4,000 | Up to $2,000 (50% of cost) | Required to support electrification upgrades |
| Electric wiring upgrades | $2,500 | Up to $1,250 (50% of cost) | As needed to support installed measures |
| Insulation / air sealing / ventilation | $1,600 | Up to $800 (50% of cost) | Must meet IECC standards |
| Total household cap | $14,000 | $14,000 | Applies across all measures combined |
HEAR income limits are based on HUD Area Median Income (AMI) by county and household size. Indiana's median incomes are lower than many HEAR states — more households qualify for the LMI (100%) tier than in coastal markets. Use the official HUD FY2026 AMI tables or the income calculator at IndianaEnergySaver.com for precise limits by county.
| Metro Area | ~Median HH Income | Est. 80% AMI (4-person) | Est. 150% AMI (4-person) |
|---|---|---|---|
| Indianapolis-Carmel-Anderson | ~$73,000 | ~$58,400 | ~$109,500 |
| Fort Wayne | ~$62,000 | ~$49,600 | ~$93,000 |
| South Bend–Mishawaka | ~$60,000 | ~$48,000 | ~$90,000 |
| Evansville (IN portion) | ~$58,000 | ~$46,400 | ~$87,000 |
| Terre Haute | ~$54,000 | ~$43,200 | ~$81,000 |
| Rural non-metro counties | ~$50,000–56,000 | ~$40,000–44,800 | ~$75,000–84,000 |
Indiana's rural counties — where propane and fuel oil heat is most common — have the lowest AMI figures and thus the most households qualifying for the LMI (100%) rebate tier. A rural household at $45,000 annual income in a 4-person household will typically qualify at ≤80% AMI for both HEAR and HOMES enhanced rebates.
Indiana uses a two-tier contractor structure unique among live HEAR states:
Based on the Contractor Participation Manual requirements (verify at IndianaEnergySaver.com):
Indiana's HOMES (Home Efficiency Rebates) program is also live and administered through the Indiana Energy Saver Program. Unlike HEAR, HOMES is available to all Indiana households regardless of income — but LMI households receive significantly higher rebates.
| Household Income | Energy Savings Tier | Maximum HOMES Rebate |
|---|---|---|
| ≤80% AMI (LMI) | 35%+ modeled savings | $18,000 |
| ≤80% AMI (LMI) | 20–34% modeled savings | $8,000 |
| 80–150% AMI | 35%+ modeled savings | $4,000 |
| 80–150% AMI | 20–34% modeled savings | $2,000 |
| >150% AMI | 35%+ modeled savings | $4,000 |
| >150% AMI | 20–34% modeled savings | $2,000 |
HOMES retroactive window: Indiana's HOMES program has a unique provision — work completed between August 16, 2022 and May 14, 2025 may be eligible for retroactive HOMES rebates. If your clients completed qualifying whole-home improvements in that window, check with IESP about the retroactive application process. HEAR is not retroactive; only HOMES.
HEAR and HOMES stack. A single project can claim both HEAR appliance rebates and HOMES whole-home savings rebates — they are separate programs with separate funding. A heat pump + air sealing + insulation project can generate HEAR rebates (up to $14,000) plus HOMES rebates (up to $18,000 for LMI households at the top tier) on the same installation.
Indiana's major utilities have efficiency programs that stack with Indiana Energy Saver HEAR and HOMES rebates. Utility rebates are typically smaller than federal rebates, but they are available now and apply regardless of AMI qualification.
NIPSCO serves approximately 800,000 electric customers in northern Indiana (Lake, Porter, St. Joseph, Elkhart, and surrounding counties). Their energy efficiency program includes heat pump rebates and a low-income track.
Duke Energy Indiana serves central Indiana including suburban Indianapolis and Bloomington. Their SmartSaver program includes rebates for qualifying heat pumps and weatherization.
AES Indiana serves the Indianapolis urban core. Their efficiency programs include heat pump installation rebates and demand-side management incentives.
Serves northeastern Indiana including Fort Wayne, Muncie, and the southwest Michigan border counties. AEP's WattSaver program includes heat pump and weatherization rebates.
Serves southwest Indiana including Evansville. CenterPoint is primarily a gas utility — their rebate programs favor gas efficiency improvements. Weatherization rebates (insulation, air sealing) may stack with HEAR envelope measures. Verify stacking eligibility with IESP for gas utility rebates combined with federal electrification incentives.
The 25C Residential Clean Energy Credit applies to Indiana homeowners now, regardless of Indiana Energy Saver program status. Critically, 25C credits do not reduce Indiana Energy Saver rebate amounts — they are separate programs calculated independently.
| Measure | Credit | Annual Cap |
|---|---|---|
| Air source heat pump (qualifying) | 30% of cost | $2,000/year |
| Heat pump water heater | 30% of cost | $2,000 (combined with ASHP) |
| Insulation & air sealing | 30% of cost | $1,200/year |
| Exterior windows | 30% of cost | $600/year |
| Home energy audit | 30% of cost | $150/year |
For households above 150% AMI who don't qualify for HEAR, 25C remains the primary federal incentive. For HEAR-eligible households, 25C stacks on top — it is calculated on the gross project cost before HEAR rebates are applied, and it reduces the client's federal tax liability in the filing year.
A homeowner in Marion County (Indianapolis) at 70% AMI converting from a gas furnace to a cold-climate heat pump. Home is 2,400 sq ft, 1980s construction. Project scope: cold-climate heat pump + heat pump water heater + air sealing + attic insulation. Total installed cost: $18,500.
| Program | Amount | Notes |
|---|---|---|
| Indiana Energy Saver HEAR — heat pump (LMI 100%) | $8,000 | Applied at installation; contractor submits via IESP portal |
| Indiana Energy Saver HEAR — HPWH (LMI 100%) | $1,750 | Same application |
| Indiana Energy Saver HEAR — insulation/air sealing | $1,600 | Same application |
| Indiana Energy Saver HOMES (LMI, 35%+ savings) | $8,000–$18,000 | Separate application; LMI tier at ≤80% AMI |
| 25C — heat pump tax credit | $2,000 | Reduces federal tax liability in filing year |
| AES Indiana / Duke utility rebate | ~$200–$250 | Stackable per utility program terms; verify with IESP |
| Total (HEAR + HOMES LMI top tier + 25C + utility) | ~$31,550 | Exceeds $18,500 project cost — net result is zero-cost project for LMI client |
Non-LMI scenario (same project, household at 110% AMI):
Indiana is one of the stronger HEAR markets among live states for three reasons:
The early-mover dynamic in Indiana is real: the contractor pool for HEAR-enrolled contractors is smaller relative to the addressable market than in more mature states. Contractors who complete the provisional approval process now will face less application backlog than those who wait until after the program gains broader visibility.
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