Federal rebates for gas-to-electric heating conversions have ended — but electric-to-heat-pump upgrades still qualify. What changed
Open, and it works the way rebates should — the discount comes off the price at installation instead of arriving months later.
Prices pulled August 16, 2026
16.23¢
per kWh, residential electricity
6% below the national average of 17.3¢. 20th most expensive of 51.
Up 21% since 2021 (5% a year), against 27% nationally.
$1.11
per therm, residential natural gas
$11.49 per thousand cubic feet, 2025 annual. National average $1.48/therm.
Up 14% since 2021 (3.4% a year).
Heat pump vs. gas furnace — Close call
Indiana's electricity-to-gas price ratio works out at 4.3-to-1. At these prices the two land near each other on running cost, which puts the decision on installation cost, whether your AC also needs replacing, and how cold your winters get.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
Indiana Energy Saver launched in May 2025 and is accepting applications. That alone puts Indiana ahead of most of its neighbours, several of which are still waiting on federal approval with no date attached.
The mechanic is the good one: rebates land as an upfront discount applied by a qualified contractor at the point of purchase and installation. You are not fronting the full cost and waiting to be reimbursed, which is the version of this that stops people on tight budgets from participating at all.
One application covers both tracks, which is unusual and saves real confusion. Elsewhere you have to work out in advance whether your project is a whole-home efficiency retrofit or an appliance upgrade and apply to the right programme. Indiana takes one application and sorts it out.
The two tracks still have different tests, so know which one you are aiming at. The whole-home track is open to any income but requires the project to be predicted to save at least twenty per cent of the home's energy. The appliance and electrification track is limited to households under 150% of area median income.
Because the discount runs through the contractor, the contractor has to be qualified under the programme. Confirm that before you sign — an excellent installer who is not enrolled cannot apply the discount, and no amount of paperwork afterwards fixes it.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
Open to applications. One application covers both the whole-home efficiency track and the electrification and appliance track; the rebate is applied as an upfront discount by a qualified contractor rather than reimbursed later.
Program detailsThe state agency behind the programme, with programme documents and updates.
Program detailsEnded. No credit for expenditures made after 31 December 2025.
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
These open with Indiana's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
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