HVAC Guide for Indiana
Indiana falls in ASHRAE Climate Zone 5A (Cool-Humid), with an average residential electricity rate of 16.6¢ per kWh. The biggest HVAC challenge for Indiana homeowners is efficient heating during long, cold winters. This guide covers everything you need to know about heating and cooling costs, recommended equipment, and energy-saving strategies specific to Indiana's climate.
Indiana HVAC Quick Facts
Heating and Cooling Costs in Indiana
Based on EIA data, the average Indiana household spends approximately $920 per year on heating and $320 on cooling. That's a combined $1,240 per year on HVAC energy costs alone.
| Cost Category | Annual Estimate | Monthly (Peak Season) |
|---|---|---|
| Heating | $920 | ~$184/month |
| Cooling | $320 | ~$80/month |
| Total HVAC | $1,240 | - |
Source: EIA Residential Energy Consumption Survey, adjusted with 2025-2026 fuel price data.
Climate Zone 5A: What It Means for Your HVAC
Indiana's ASHRAE Climate Zone 5A (Cool-Humid) directly affects which HVAC equipment works best, how much insulation your home needs, and what efficiency ratings to prioritize.
With 5,600 heating degree days annually, Indiana is a heating-dominated climate. Your furnace or heating system runs for much of the year, making heating efficiency (AFUE rating) the top priority.
- Recommended furnace AFUE: 95-98%
- Priority: High-efficiency heating with proper air sealing
- Consider: Cold-climate heat pumps (effective down to -15°F)
- Insulation focus: Wall and attic insulation, air sealing, and weatherstripping
Primary Heating Fuel in Indiana
The dominant heating fuel in Indiana is natural gas. Natural gas is the primary heating fuel in Indiana. A high-efficiency condensing furnace (95%+ AFUE) can reduce heating costs by 15-30% compared to a standard 80% furnace.
Energy-Saving Tips for Indiana Homeowners
- Set your thermostat strategically: The DOE recommends 78°F for cooling and 68°F for heating. Each degree of adjustment saves approximately 1-3% on your HVAC energy costs.
- Schedule annual maintenance: A well-maintained system operates 15-25% more efficiently. Schedule AC tune-ups in spring and furnace tune-ups in fall.
- Change air filters regularly: Dirty filters force your system to work harder, increasing energy use by 5-15%. Check monthly, replace every 1-3 months.
- Seal air leaks: The average home loses 25-40% of heating and cooling energy through air leaks around windows, doors, and ductwork.
- Upgrade to a programmable or smart thermostat: Smart thermostats can save 10-15% on heating and cooling costs by automatically adjusting when you're away or sleeping.
- Insulate your attic: In Indiana's cold climate, upgrading attic insulation from R-19 to R-49 or higher can reduce heating costs by 10-20%.
- Consider a system upgrade: If your HVAC system is 10-15+ years old, a modern high-efficiency system can reduce energy costs by 20-40%. Use our Energy Savings Calculator to estimate your potential savings.
Recommended HVAC Equipment for Indiana
| Equipment Type | Recommended Rating | Why |
|---|---|---|
| Central AC | SEER 14-16 | 1,000 CDD means AC efficiency directly impacts your bills |
| Gas Furnace | 95-98% AFUE | 5,600 HDD means heating efficiency matters |
| Heat Pump | SEER 14-16 / 9+ HSPF | Year-round efficiency for Indiana's cool-humid climate |
| Smart Thermostat | ENERGY STAR certified | Save 10-15% on annual HVAC costs |
Free HVAC Tools
Use our free online tools to make better HVAC decisions:
- BTU Calculator — Find the right system size for your home
- Energy Savings Calculator — See how much you'd save with a more efficient system
- HVAC Cost Estimator — Get a rough estimate for a new system
- Repair or Replace Calculator — Decide whether to fix or upgrade
- Thermostat Savings Calculator — See how thermostat changes affect your bill
- Maintenance Checklist — Stay on top of seasonal HVAC maintenance
HVAC Tax Credits and Rebates
Indiana homeowners may qualify for federal and state incentives when upgrading HVAC equipment:
- Federal 25C Tax Credit: Up to $2,000 for qualifying heat pumps, up to $600 for qualifying AC or furnace
- IRA Home Energy Rebates: Income-qualified rebates up to $8,000 for heat pump installations through state energy offices
- Utility rebates: Many Indiana utilities offer rebates for high-efficiency HVAC equipment — check with your local utility provider
- ENERGY STAR: Purchase qualifying ENERGY STAR certified equipment to ensure eligibility for most rebate programs
Need HVAC Help in Central Texas?
Texas Temp Masters serves Killeen, Waco, Temple, and surrounding Central Texas communities. Call (817) 704-0706 for a free consultation, or contact us online.
Data sources: U.S. Energy Information Administration (EIA), ASHRAE Standard 169-2021, NOAA Climate Normals (1991-2020), U.S. Census American Community Survey. Costs are estimates based on regional averages and may vary based on home size, insulation quality, and equipment efficiency. Last updated February 2026.
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