INDIANA

Indiana Water Heater
Replacement

Licensing, rebates, running costs and local guides for 18 Indiana communities.

Written by Victoria StewartTechnical review by Phil Montoya, licensed plumber, September 30, 2026Updated September 29, 2026How we research

Local guides in Indiana

Licensing in Indiana

The Indiana Plumbing Commission, through the Professional Licensing Agency (PLA), licenses Plumbing Apprentices, Journeyman Plumbers and Plumbing Contractors. State law makes it unlawful to act as a plumbing contractor or journeyman plumber without a license.

Plumbing contractor and journeyman licenses both require an exam and about four years of apprenticeship or equivalent experience.

Indiana PLA license verification ↗ · Indiana PLA plumbing licensing information ↗ · PLA license lookup ↗

Rebates and credits in Indiana

Indiana Energy Saver Program: Home Appliance Rebate (IRA HEAR)

Indiana Office of Energy Development · Active

Up to $1,750 off an ENERGY STAR heat pump water heater, applied as a discount on the product and qualified-contractor installation. Households under 80% of Area Median Income get 100% of project cost covered and those at 80–150% AMI get 50%, up to $14,000 per household.

Apply only through the official IndianaEnergySaver.com portal; the state says program contractors never go door to door. Announced May 14, 2025, and backed by $182 million in federal funding.

Program details ↗

NIPSCO heat pump water heater rebate

NIPSCO (program run by TRC) · Active

$750 off an ENERGY STAR heat pump water heater with a UEF of at least 2.0.

Active NIPSCO residential electric account required, and the AHRI certificate must be included. The application and invoice must be postmarked within 60 days of installation; offer runs January 1 to November 30, 2026.

Program details ↗

Federal Energy Efficient Home Improvement Credit (25C)

IRS · Ended

Covered improvements made through December 31, 2025. Not available for 2026 installations.

Program details ↗

Checked September 29, 2026. Utility rebates are only for that utility’s customers. Each city guide shows the rebates for its utilities.

What it costs to run in Indiana

Estimated yearly energy cost at Indiana’s average residential prices: 17.04¢ per kWh (year to date through July 2026) and $11.49 per thousand cubic feet of gas (2025 annual average).

Estimated yearly energy cost by water heater type in Indiana
Type	Efficiency (UEF)	Energy per year	Est. cost per year
Gas storage tank	0.64	174 therms	$193
Gas tankless	0.93	120 therms	$133
Electric storage tank	0.92	3,556 kWh	$606
Heat-pump tank	3.5	935 kWh	$159

Assumes the Department of Energy’s medium-use test: 55 gallons a day heated 67°F, and typical efficiency ratings for each type. Colder incoming water, larger households and your utility’s actual rates change the result. Sources: EIA Electric Power Monthly, Table 5.6.B ↗ · EIA Natural Gas Prices, residential ↗ · ENERGY STAR test conditions ↗.

Indiana Water HeaterReplacement

Local guides in Indiana

Licensing in Indiana

Rebates and credits in Indiana

Indiana Energy Saver Program: Home Appliance Rebate (IRA HEAR)

NIPSCO heat pump water heater rebate

Federal Energy Efficient Home Improvement Credit (25C)

What it costs to run in Indiana

Start with a photoof your old heater.

Indiana Water Heater
Replacement

Start with a photo
of your old heater.