How much does it cost to heat and cool a 2,000 sq ft home in Indiana?

In Indiana (16.1¢/kWh via AES Indiana / Duke Energy), a 2,000 sq ft home averages $783/year ($65/month) with a high-efficiency heat pump, $734/year with a natural gas furnace and central AC, and $2,340/year with electric baseboards.

Are heat pumps cheaper to run than gas furnaces in Indiana?

At Indiana's natural gas rate of $1.28/therm, the economic break-even electricity price for a COP 3.1 heat pump is 14.7¢/kWh. Comparing this against Indiana's residential electricity rate of 16.1¢/kWh determines annual operating savings.

Indiana Heating & Cooling Cost Calculator (2026)

2,000 Sq Ft Heat Pump Bill

$65/mo

IN Electricity / Gas Rate

16.1¢ / $1.28

15-Yr Savings vs Baseboard

+$19,755

Indiana Annual Heating & Cooling Bills by Home Size

In Indiana, a 2,000 sq ft home averages $783/year ($65/mo) using a cold-climate heat pump ($716/yr winter heating + $67/yr summer cooling), compared to $734/year with a natural gas furnace and $2,340/year with electric baseboards.

Home Size	Heat Pump (COP 3.1)	Gas Furnace + AC	Baseboard + Window AC	15-Yr Heat Pump Savings
1,000 Sq Ft	$391/yr ($33/mo)	$367/yr ($31/mo)	$1,170/yr ($98/mo)	+$8,085
1,500 Sq Ft	$587/yr ($49/mo)	$551/yr ($46/mo)	$1,755/yr ($146/mo)	+$13,920
2,000 Sq Ft	$783/yr ($65/mo)	$734/yr ($61/mo)	$2,340/yr ($195/mo)	+$19,755
2,500 Sq Ft	$978/yr ($82/mo)	$918/yr ($77/mo)	$2,924/yr ($244/mo)	+$25,590
3,000 Sq Ft	$1,174/yr ($98/mo)	$1,102/yr ($92/mo)	$3,509/yr ($292/mo)	+$31,425
3,500 Sq Ft	$1,370/yr ($114/mo)	$1,285/yr ($107/mo)	$4,094/yr ($341/mo)	+$37,260

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Verify 2026 Federal 25C Tax Credit & AES Indiana / Duke Energy rebate eligibility and compare turnkey contractor pricing for a 3.0-Ton system (2,000 sq ft).

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