The Home Electrification and Appliance Rebate [HEAR] Program is a State initiative funded Federally in 2022 that gives low-to-moderate-income households an instant discount of up to $14,000 to switch to high-efficiency electric appliances. Unlike a tax credit that you wait months for, this rebate is applied at the time of purchase, essentially acting like a high-value coupon.

1. High-Value Instant Savings in Indiana

You don’t get a check in the mail; you get a lower price on the invoice.

• Heat Pump Water Heaters: Up to $1,750 off.

• Heat Pump Heating/Cooling: Up to $8,000 off.

• Electrical Panels/Wiring: Up to $6,500 off (if needed for new appliances). and more…

2. Eligibility is Income-Based

The program is designed for households earning less than 150% of the Area Median Income (AMI).

• Low Income (<80% AMI): The rebate covers 100% of the cost (up to the caps above).

• Moderate Income (80%–150% AMI): The rebate covers 50% of the cost (up to the caps above).

3. Point-of-Sale Convenience

Because this is a point-of-sale program, you must work with a state-approved contractor or retailer. You simply apply on the State portal and get your State Voucher. The contractor deducts the amount of the voucher directly from your quote.

How to Claim Your Voucher in Indiana (4 Simple Steps)

To get the rebate, you must follow Indiana’s official process before you buy your new water heater.

1. Check Your Eligibility Visit IndianaEnergySaver.com to use the official screening tool. Eligibility is determined by your household’s Area Median Income (AMI):

• Low Income (<80% AMI): Eligible for a rebate covering 100% of the cost (up to $1,750).

• Moderate Income (80%–150% AMI): Eligible for a rebate covering 50% of the cost (up to $1,750).

• Note: Households already enrolled in the Energy Assistance Program (EAP) or SNAP are often automatically eligible.

2. Submit an Application Complete the online application through the IESP Application Portal. You will need to upload:

• A copy of your current electric utility bill (e.g., Duke Energy, AES Indiana, NIPSCO, or Indiana Michigan Power).

• Proof of household income (2024 or 2025 Tax returns, W-2s, or recent pay stubs).

3. Receive Your Approval Once the Indiana Office of Energy Development approves your application, you will receive an Approval Notification (your digital voucher). This notification confirms your rebate amount and is required by your contractor to apply the discount to your invoice. If your Utility offers a rebate we show you how to redeem it.

4. Ready to find a contractor? Select a qualified professional from the Indiana Energy Saver Contractor Directory.

Alternatively, we invite you to come back to NewWaterHeaterDecisions.com and fill in the form below. We will connect you with 3 qualified Indiana installers who are registered with the IESP and typically quote a competitive standard install flat price before stepping into your home.

By clicking “submit” on the form below, you provide your express written consent to be contacted by up to the following 3 Contractors: Summers Plumbing Heating & Cooling, Mister Water Heater, or Masters Heating and Cooling regarding your quote request. You agree to receive communications via phone, text, or email, including automated technology, even if you are on a Do Not Call list. Consent is not a condition of purchase.

5. Redeem your HEAR Discount Present your Approval Notification to your selected contractor. They will verify your eligibility through the state portal and deduct the $1,750 (or your eligible amount) directly from your total bill.