Cost to heat a home in Indiana
Cheapest to run in Indiana is
a heat pump
A heat pump costs about $781 a year less than a gas furnace here. That is a consequence of Indiana's prices, not of the equipment — the same comparison goes the other way in states with cheaper gas.
A heating season compared
| Gas furnace80% AFUE | $2418 |
| Heat pumpcheapestHSPF2 8.5 | $1637 |
| Electric resistanceBaseboard or furnace | $4078 |
At 16.73¢ a kilowatt hour and $2.33 a therm, for a 1,800 square foot home over 5,500 heating degree days.
About the cold
Indiana sees about 125 freezing nights a year. That is enough that a heat pump needs to be a cold-climate model, and backup heat will run on the worst nights — which is already reflected in the figures above.
Common questions
Is a heat pump cheaper than gas heating in Indiana?
Yes. At Indiana's prices a heat pump costs about $1637 a season against $2418 for a gas furnace — roughly $781 less a year for the same heat.
What does it cost to heat a house in Indiana for a winter?
Between about $1637 and $4078 for a 1,800 square foot home, depending entirely on the system. Indiana runs around 5,500 heating degree days a year.
Why is electric resistance heat so much more expensive?
It converts electricity to heat one for one, while a heat pump moves heat rather than making it and delivers two to three times as much per unit of electricity. In Indiana that difference is about $2441 a season.
Work it out for your home
These assume a 1,800 square foot home and typical equipment. The calculator takes your ZIP code, your floor area and your actual furnace efficiency, and includes what switching would cost to install.
Prices from the US Energy Information Administration, residential sector, 2026-07. Heating load estimated from Indiana's heating degree days. An estimate, not a bill — insulation, air sealing, ductwork and thermostat habits all move it, and no calculator can see those.
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