Indiana Energy Rebates 2026
Indiana residents can access HEAR and HOMES federal rebates in 2026, administered through the Indiana Housing and Community Development Authority (IHCDA). Duke Energy Indiana serves Indianapolis and much of southern Indiana, AES Indiana (now part of AES Corporation) also serves the Indianapolis area, and NIPSCO (Northern Indiana Public Service Company) covers the northern part of the state. Both Duke and NIPSCO offer energy efficiency rebate programs for their customers.
HOMES Rebate Program in Indiana
| Income Level | Max Rebate | Cost Coverage |
|---|---|---|
| Low income (≤80% AMI) | Up to $8,000 | 80% of project cost |
| Moderate income (80-150% AMI) | Up to $4,000 | 50% of project cost |
| Above 150% AMI | Not eligible | N/A |
Indiana HOMES rebates are administered by IHCDA. Households at or below 80% AMI can receive up to $8,000 for qualifying whole-home energy retrofits achieving measurable savings, while moderate-income households (80–150% AMI) may receive up to $4,000. Contact IHCDA or your local utility to begin an energy audit and application process.
HEAR (HEEHRA) Rebates in Indiana
| Equipment | Max Rebate |
|---|---|
| Heat Pump HVAC | Up to $8,000 |
| Electrical Panel | Up to $4,000 |
| Wiring Upgrade | Up to $2,500 |
| Heat Pump Water Heater | Up to $1,750 |
| Insulation & Weatherization | Up to $1,600 |
| Electric Stove/Cooktop | Up to $840 |
Maximum total: $14,000 per household (low-income, ≤80% AMI). Moderate income (80-150% AMI) can receive up to $7,000.
Indiana State Incentive Programs
Duke Energy Indiana Smart Saver Program
Duke Energy Indiana's energy efficiency rebate program offering incentives for heat pumps, smart thermostats, insulation, and home energy assessments for residential customers in Indianapolis and surrounding service territory.
Learn moreNIPSCO Home Energy Savings Program
NIPSCO's efficiency program providing rebates and incentives for heat pumps, insulation, programmable thermostats, and home energy audits for residential customers in northern Indiana.
Learn moreIndiana Weatherization Assistance Program
State-administered federal WAP program providing free weatherization services — air sealing, insulation, HVAC tune-ups — for income-eligible Indiana households through IHCDA and local community action agencies.
Learn moreUtility Rebate Programs in Indiana
Area Median Income (AMI) in Indiana
HOMES and HEAR rebate amounts depend on your household income relative to the Area Median Income in your area. AMI varies by county and household size.
| Area | 80% AMI (Family of 4) | 150% AMI (Family of 4) |
|---|---|---|
| Indianapolis-Carmel-Anderson MSA | $72,000 | $135,000 |
| Fort Wayne MSA | $64,800 | $121,500 |
| South Bend-Mishawaka MSA | $64,000 | $120,000 |
Frequently Asked Questions
What energy rebates are available in Indiana in 2026?
Indiana residents in 2026 can access HEAR rebates (up to $14,000 for heat pump HVAC, water heaters, and electric appliances) and HOMES rebates (up to $8,000 for whole-home energy improvements), administered by the Indiana Housing and Community Development Authority (IHCDA). Duke Energy Indiana's Smart Saver program and NIPSCO's Home Energy Savings program provide additional utility-funded rebates. The Indiana Weatherization Assistance Program offers free upgrades for income-eligible households through local community action agencies.
Are federal tax credits still available in Indiana?
No. The One Big Beautiful Bill Act (P.L. 119-21, signed July 4, 2025) terminated Section 25C and 25D federal energy tax credits for installations after December 31, 2025. Indiana homeowners who installed qualifying heat pumps, insulation, windows, solar panels, or other eligible equipment in 2025 or earlier can still claim those credits on their 2025 federal tax return. For 2026 installations, HEAR and HOMES rebates plus Duke Energy and NIPSCO utility programs are the primary federal and utility benefits available.
What does Duke Energy Indiana's Smart Saver program offer?
Duke Energy Indiana's Smart Saver program provides utility rebates for energy efficiency improvements including heat pump HVAC systems, smart thermostats, insulation, and home energy assessments. These rebates are available to Duke Energy Indiana residential customers in the Indianapolis metro and surrounding service territory, and can be combined with HEAR federal rebates for maximum savings. Visit duke-energy.com to see current rebate amounts — these can change annually based on program funding.
What are the income limits for HEAR and HOMES rebates in Indiana?
Indiana HEAR rebates target households earning up to 150% of Area Median Income (AMI), with maximum rebate amounts for those at or below 80% AMI. In the Indianapolis-Carmel-Anderson metro area, 80% AMI for a 4-person household is approximately $72,000. In Fort Wayne, it's about $64,800; in South Bend, about $64,000. These income thresholds mean a significant portion of Indiana households can qualify for meaningful HEAR rebates, particularly in smaller metro and rural areas.
Is NIPSCO a good option for energy rebates in northern Indiana?
Yes. NIPSCO's Home Energy Savings program provides rebates for heat pumps, insulation, smart thermostats, and home energy audits for residential customers in northern Indiana including South Bend, Fort Wayne, Gary, and the Lake County area. NIPSCO rebates can be stacked with HEAR and HOMES federal rebates. As a natural gas and electric utility, NIPSCO also offers incentives for high-efficiency gas equipment — though with 25C tax credits expired, the financial advantage of electric heat pumps over high-efficiency gas has changed in 2026. Contact NIPSCO directly for current program availability and rebate amounts.
How to Claim Your Indiana Rebates
