Nathan Healy
Certified by Nathan Healy
Updated: February 2026
Quality home solutions since 2011
Palmetto serves thousands of customers across 25 states with an over 85% approval rating

01

Benefits of Palmetto Heat Pumps

Say goodbye to clunky old systems and surprise repairs. Palmetto Comfort Plan gives you a brand-new heat pump, installation, and full support, all wrapped into one subscription.

Year round comfort

Year Round Comfort

A high-efficiency heat pump keeps your home cool in summer, warm in winter, and your energy use in check all year long.

Forget the maintenance

Forget the maintenance

With a Comfort Plan subscription, installation and maintenance are fully covered, no surprise bills, no weekend DIY.

Rewards for renewing

Rewards for renewing

Stick with us and earn credits toward your next system upgrade. It’s our way of saying thanks for building a cleaner, comfier future with us.

02

Evansville, IN Heat Pump Load Calculator

Use this calculator to estimate your home’s heating and cooling needs based on square footage. It’s calibrated to ACCA-standard design conditions for Evansville, IN: 91°F for cooling, -5°F for heating, and a 72°F indoor setpoint. For a precise Manual J load calculation and personalized quote, connect with Palmetto’s team. Get in touch with our team for an official quote.

Step 1 of 3

Home location & size

Your home’s location and size directly impact heating needs.

Step 2 of 3

Home attributes

Step 3 of 3

Additional details

Description of what this means for context.

Estimated Heating Needs

Your home’s location falls within the a climate zone with the average extreme winter falling between 10° – 15° F.

Home Details

Get Started

Recommended equipment capacity

60,000 BTU

5 Tons

Calculated Cooling Mode

102,000 BTU

8.5 Tons

03

Buy it or finance it. Your comfort, your call

There's no wrong way to get cozy. Here's how the options stack up, so you can choose what works best for you.

Cash

Loan

Payment schedule $0 upfront, then monthly subscription Full price upfront $0 upfront, then monthly payment
Term length 10 or 12 years None Variable
End of term options Flexible with 25% renewal term credits to new system No credits to new system No credits to new system
Maintenance included
Eligible for incentives
Payment schedule $0 upfront, then monthly subscription
Term length 10 or 12 years
End of term options Flexible with 25% renewal term credits to new system
Maintenance included
Eligible for incentives

Cash

Payment schedule Full price upfront
Term length None
End of term options No credits to new system
Maintenance included
Eligible for incentives

Loan

Payment schedule $0 upfront, then monthly payment
Term length Variable
End of term options No credits to new system
Maintenance included
Eligible for incentives

Local Incentives

Evansville, IN Heat Pump Rebates & Incentives

Local and federal incentive programs can significantly reduce the cost of a new heat pump system. Here are the programs available to Evansville homeowners.

Indiana HOMES Rebate

Up to $8,000

The Home Efficiency Rebate (HOMES) provides cost savings to all Hoosiers on whole-home retrofits achieving a minimum of 20% energy savings, helping homeowners save on energy-efficient upgrades like heat pumps, electric appliances, and insulation.

Eligibility: Available to single family and multifamily residents on whole-home retrofits achieving a minimum of 20% predicted energy savings. Rebate amounts depend on household income and project type, with low-income households potentially qualifying for up to 100% of the project cost.

Learn more →

Indiana HEAR Rebate

Up to $8,000

The Home Appliance Rebate (HEAR) provides additional cost savings to low- and moderate-income households earning less than 150% of the Area Median Income for select, first-time upgrades including heat pump water heaters, heat pump HVAC systems, and electrical upgrades.

Eligibility: Available to low- and moderate-income households earning less than 150% of the Area Median Income. Approved equipment includes heat pump water heaters, HVAC heat pumps (electric only), and insulation or sealing.

Learn more →

NIPSCO Heat Pump Rebate

$800 - $1,000

NIPSCO offers rebates for high-efficiency heating and cooling equipment including heat pumps. Current rebates are available for equipment purchased and installed between January 1, 2026 and November 30, 2026.

Eligibility: Customer must have an active NIPSCO residential electric and/or natural gas account. Rebate amounts vary by SEER2 rating: 15.2-16.1 SEER2 - $800, 16.2-17.0 SEER2 - $900, 17.1+ SEER2 - $1,000.

Learn more →

Federal IRA Tax Credit

Up to $2,000

The Inflation Reduction Act provides a federal tax credit of up to $2,000 for qualifying heat pump installations through 2032.

Eligibility: Available to homeowners who purchase and install a qualifying heat pump system. Claimed on your annual federal tax return.

Learn more →

Evansville homeowners have access to multiple active heat pump rebate programs in 2026. The Indiana Energy Saver Program offers up to $8,000 through the HOMES rebate for whole-home retrofits and the HEAR rebate for income-qualified households. NIPSCO utility customers can also receive $800-$1,000 rebates for qualifying heat pump installations. Combined with the federal IRA tax credit of up to $2,000, homeowners can stack these incentives to significantly reduce heat pump installation costs. Palmetto can help you navigate these programs and maximize your available rebates.

Incentive information is based on publicly available data as of 2026 and may change. Contact program administrators to verify current availability and eligibility requirements.

04

Climate Zones

Evansville sits in IECC Climate Zone 6, which means cold winters (design temps around -5°F) and warm summers (reaching 91°F). That wide temperature swing matters—your heat pump needs to handle both extremes efficiently. At Palmetto, we factor in Evansville's specific climate when sizing and selecting systems, so you stay comfortable year-round without overpaying on energy bills. Explore other climate zones below or enter your ZIP code to confirm yours.

US Climate Zone Map
Your location

Climate Zone 1

Climate zone 1 is not typically seen within the United States outside of Alaska. It represents the coldest climates on the planet.

Climate Zone 1A

Avg. extreme winters: -60° to -55° F

Climate Zone 1B

Avg. extreme winters: -55° to -50° F

05

Evansville Electricity Prices

Understanding electricity costs in Evansville helps you make smarter decisions about home heating and cooling that protect your budget long-term.

Indiana electricity rates have climbed from 13.4 cents per kWh in 2021 to 14.8 cents in 2024. While slightly below the national average, these rising costs still impact your monthly bills significantly.

Heat pumps use 2-3 times less electricity than traditional HVAC systems to deliver the same heating and cooling. This efficiency means you're drawing less power from the grid, even as rates increase.

As electricity costs continue their upward trend, a heat pump's efficiency becomes increasingly valuable. Lower consumption today translates to meaningful savings over the system's 15-20 year lifespan, insulating you from future rate hikes.

Price of Energy: Indiana vs National Average

10¢
20¢
30¢
13.7¢
13.4¢
15.0¢
14.6¢
16.0¢
14.9¢
16.5¢
14.8¢
2021
2022
2023
2024
US Average
Indiana

Evansville Area Utility Providers

Evansville residents are served by two main utility providers: Vectren at 17.2¢ per kWh and Indiana Michigan Power at 16.1¢ per kWh, based on 2023 data (the latest available).

Both providers' rates exceed Indiana's 2023 state average of 14.90¢ per kWh. Vectren's rates also surpass the national average of 16.0¢, while Indiana Michigan Power sits just above it, reflecting regional infrastructure and fuel costs.

While electricity costs matter, efficiency matters more. Heat pumps use significantly less energy than traditional heating and cooling systems, meaning lower total energy bills even where electricity rates run higher than average.

Evansville Utilities Electricity Rates

Vectren
17.20¢
+7%
Indiana Michigan Power
16.10¢
+1%
IN Average
14.90¢
-7%
US Average
16.0¢
06

Palmetto Reviews

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
Palmetto mobile app
07

Let our smart tools do the heavy lifting.

Get personalized tips, usage insights, project tracking, and that daily satisfaction of making your energy work smarter with the Palmetto mobile app.

  • Rewards for smarter energy usage
  • Energy insights & Dashboard
  • Personalized Savings Tools
  • Whole Home Energy Management
  • Support Whenever You Need It
Download the App
08

Repair versus replace

When a heat pump is in need of repair it is worth considering whether a replacement would be a better investment. While each case is unique, we generally recommend investing in a new unit when repairs exceed $5,000.

$5,000
Recommended repair threshold

A heat pump's lifetime is impacted by a number of factors including environment, use and the quality of the unit. It's important to choose the right unit for your climate zone and home's unique attributes.

When you are in need of repair, we recommend choosing a service provider that is an expert in the heat pump brand you have installed, and checking online reviews to ensure you are investing in the right level of service.

Potential repair Cost range Description
Capacitor Replacement $150 - $400 Common issue when unit struggles to start or makes a humming noise. Capacitors store the electrical energy needed to start the compressor and fan motors.
Refrigerant Recharge $250 - $750 Needed when the system loses cooling or heating efficiency due to low refrigerant levels. Includes leak detection, repair of minor leaks, and recharging the system to the manufacturer-specified level.
Reversing Valve Replacement $450 - $900 Required when the unit cannot switch between heating and cooling modes. The reversing valve directs refrigerant flow and is unique to heat pump systems.
Compressor Replacement $1,500 - $3,000 Major repair needed when the unit fails to heat or cool entirely. The compressor is the heart of the system, circulating refrigerant between the indoor and outdoor coils.
Evaporator/Condenser Coil Replacement $1,200 - $2,800 Replacement needed when coils develop leaks or corrosion that cannot be economically repaired. Coil damage reduces heat transfer efficiency and can cause refrigerant loss.
Control Board Replacement $500 - $1,200 Required when the system has electrical failures or erratic behavior. The control board manages all system operations including defrost cycles, fan speeds, and compressor staging.
Full System Replacement $4,500 - $8,000+ When repairs exceed the value of the unit or multiple major components fail simultaneously. Includes removal of the old system and installation of a new heat pump with updated refrigerant lines and electrical connections.

Ready to start saving with a heat pump?

Speak with a Palmetto heating & cooling expert to find out exactly how much you can save.

Get a Free Quote
09

Frequently Asked Questions

Yes, heat pumps make excellent sense in Evansville. As a Climate Zone 6 area with winter temperatures reaching -5°F and summers hitting 91°F, modern heat pumps efficiently handle both heating and cooling needs year-round. With Indiana's electricity rate at 14.8¢ per kWh, heat pumps typically cost less to operate than traditional heating systems while providing consistent comfort.

Evansville homeowners have flexible options to get started. Palmetto's Comfort Plan offers $0 upfront with maintenance included, ideal for avoiding large initial costs. Alternatively, direct purchase may qualify you for up to $2,000 in federal tax credits under the Inflation Reduction Act, plus local rebates, making heat pumps an increasingly affordable investment.

Heat pumps perform very efficiently in Evansville's Climate Zone 6, even during cold winters. Modern heat pumps maintain strong heating performance down to temperatures well below Evansville's design heating temperature of -5°F. With Indiana's electricity rate at 14.8¢ per kWh, heat pumps typically cost significantly less to operate than traditional heating systems like furnaces or baseboard heaters.

During Evansville's hot summers, with design temperatures reaching 91°F, heat pumps provide efficient cooling comparable to traditional air conditioners while using the same equipment for year-round comfort. Whether you choose Palmetto's Comfort Plan with $0 upfront cost and included maintenance, or direct purchase to access federal tax credits up to $2,000, you'll benefit from lower energy bills throughout the year.

The choice between leasing and buying a heat pump in Evansville depends on your financial priorities and homeownership plans. Palmetto's Comfort Plan lease requires $0 upfront and includes all maintenance and repairs, making it ideal if you prefer predictable monthly costs. Direct purchase means you own the system outright and may qualify for up to $2,000 in federal tax credits under the Inflation Reduction Act.

Consider Evansville's Climate Zone 6 conditions, where temperatures range from -5°F in winter to 91°F in summer—your heat pump will work year-round. With Indiana's electricity rate at 14.8¢ per kWh, both options deliver energy savings compared to traditional systems. Leasing removes maintenance worries, while buying maximizes long-term savings and available incentives.

Heat pump costs in Evansville typically range from $5,000 to $20,000 for a complete installation, depending on your home's size, existing ductwork, and the system's efficiency rating. Climate Zone 6 conditions, with winter temperatures dropping to -5°F, often require more robust systems that can handle Evansville's heating demands efficiently.

Palmetto offers two flexible options to fit your budget: a Comfort Plan with $0 upfront and predictable monthly payments including all maintenance, or direct purchase where you own the equipment and may qualify for up to $2,000 in federal tax credits. Both approaches help Evansville homeowners transition to efficient heating and cooling without financial stress.

For Evansville homeowners, heat pumps typically pay for themselves through lower energy bills over time. Heat pumps are 2-3 times more efficient than traditional heating systems, which means significant savings at Indiana's current electricity rate of 14.8¢ per kWh. With federal tax credits up to $2,000 available for direct purchases, the upfront investment becomes even more manageable.

Palmetto makes heat pumps financially accessible through two options: direct purchase for homeowners who want to maximize tax credits and own their equipment, or our Comfort Plan with $0 upfront cost and predictable monthly payments that include all maintenance and repairs. In Evansville's climate, where you need both heating and cooling year-round, a heat pump's efficiency delivers consistent savings in every season.

In Evansville, heat pumps are installed by licensed HVAC contractors who are trained to work with modern heating and cooling systems suited to Climate Zone 6 conditions. Palmetto partners with certified local installers who understand Evansville's unique climate needs, where winter temperatures can drop to -5°F and summers reach 91°F.

Palmetto offers two installation options for Evansville homeowners: a Comfort Plan with $0 upfront cost and all maintenance included, or direct purchase where you own the system outright and may qualify for up to $2,000 in federal tax credits. Both options include professional installation by experienced technicians who ensure your heat pump operates efficiently given Indiana's 14.8¢ per kWh electricity rates.

A heat pump is actually a type of HVAC system. HVAC stands for Heating, Ventilation, and Air Conditioning—it's an umbrella term for all equipment that controls your home's temperature and air quality. Heat pumps are unique because they provide both heating and cooling in one efficient unit, transferring heat rather than generating it through combustion.

In Evansville's Climate Zone 6, where winter temperatures can drop to -5°F and summers reach 91°F, modern heat pumps handle both extremes while typically using less electricity than traditional systems. With Indiana's electricity rate at 14.8¢ per kWh, this efficiency can translate to meaningful savings on your energy bills throughout the year.