How to Finance a New Heating and Air Conditioning in Indiana?

Everyone deserves a comfortable home. But of course, the HVAC units that we rely on to make that possible don’t come cheap, especially if you value having systems that run efficiently, effectively, and for many years. In this quick guide, we’ll explain how to finance heating and air conditioning in your Indiana home, ensuring you can get the systems you need without breaking the bank.

Key Takeaways

• HVAC financing helps make essential heating and cooling installations and upgrades affordable for Indiana homeowners.
• For many people, HVAC financing is the best way to get access to reliable, high-efficiency furnaces, boilers, heat pumps, and air conditioners.
• HVAC financing typically covers the system itself, installation labor, fees, and, in some cases, extended warranties.
• HVAC financing typically requires a credit score between 600 and 700.
• In addition to financing from your HVAC dealer, you can also get access to federal and state rebates, incentives, and tax credits for more savings.
• Dugan Air, Heating & Cooling is proud to offer flexible, affordable financing for homeowners in Indiana looking to upgrade their HVAC systems.

How Much Does a New Furnace or HVAC System Cost in Indiana?

If you’ve ever been quoted to replace a furnace or other HVAC system, you may have been a little shocked. Depending on your home’s size and other factors, the cost of a new furnace ranges from $3,000 to $8,000. Air conditioner installation will run you anywhere from $7,000 to $20,000, and installing a heat pump costs $4,500 to $11,000. This is money that many homeowners don’t have on hand, which is where new HVAC system financing comes in. 

Can You Finance a New HVAC System?

When you consider how much a furnace costs compared to how essential it is during those cold Indiana winters, you can see why so many homeowners opt to finance new HVAC systems rather than purchasing them outright. After all, a day on the slopes at Paoli Peaks just doesn’t sound like much fun when your home is just as cold as the mountain!

For many, the answer is financing new HVAC systems. This dramatically lowers the upfront cost of these units, breaking up the total into small, affordable payments over several months. This is ideal for people upgrading to a two-stage furnace or investing in a more energy-efficient heating system, since you’ll also be accessing efficiency savings with your new unit.

Securing financing for HVAC units begins with selecting the unit you need. A professional can inspect your home and perform the necessary calculations to determine the size of the air conditioner or heater you need. From here, you’ll consider other variables, such as efficiency, to identify the right option for your needs. Then, you apply for financing through your HVAC service provider. If approved, the unit is installed as usual and paid for on a payment plan.

What HVAC Financing Typically Covers

When you work with an HVAC company with financing, you can expect the payment plan to cover the cost of the unit itself, as well as installation labor, and any other associated fees, such as permits and inspection fees. Some HVAC financing even covers labor and parts warranties, adding even more value and peace of mind that you won’t need to replace your furnace (again) anytime soon.

Common HVAC Financing Options Available in Indiana

We’ve looked at whether you can finance a new HVAC system, but what are your options for actually getting that financing? In Indiana, homeowners looking to upgrade their HVAC systems have access to a few financing options, including:

• Dealer financing through HVAC service providers, like Dugan Air, Heating & Cooling
• Manufacturer financing offered in partnership with banks
• Home equity line of credit (HELOC)

Of course, you can also technically finance your HVAC system in other ways, such as putting it on your credit card or getting a personal loan. Depending on your income, you may also qualify for special grants and loans to make energy efficiency upgrades more accessible, helping to reduce those winter heating bills. 

Indiana Rebates, Tax Credits, and Incentives That Can Lower Your Cost

There are a number of useful rebates, tax credits, and other incentives for investing in efficient HVAC equipment. When chosen carefully, these can dramatically reduce your overall costs, saving you money on the systems you need. 

There are a few federal incentives available, including 50%-100% coverage for ENERGY STAR HVAC appliances. You can also get federal tax credits for up to 30% of the costs of insulation, air sealing, and other services that mitigate energy leakage. Additionally, you may qualify for annual incentives for high-efficiency HVAC systems through the Inflation Reduction Act.

In Indiana specifically, you may be able to access certain rebates and incentives for HVAC system upgrades depending on your utility provider. Duke Energy Indiana offers several rebates for homeowners, for instance. Other potential rebates include:

• Heat pump installation rebates
• Natural gas furnace installation rebates
• Natural gas boiler installation rebates
• Rebates for AC and furnace tune-ups
• AC installation rebates

How to Choose an HVAC Company With Financing?

When searching for a company to assist with HVAC financing, look for providers that offer affordable payments and flexible terms. Always check their credit requirements for in-house financing, typically between 600 and 700. Additionally, confirm that a reputable financial partner, such as a bank or lender, provides the financing.

And of course, remember that financing isn’t the only green flag you should be looking for in an HVAC company. It’s just as important that you have faith in the skills and experience of your chosen company, and they should be just as comfortable helping you choose a ductless mini-split AC as walking you through your financing options.

Get the HVAC Systems You Need with Dugan Air

Heating and cooling equipment is expensive, but it doesn’t change the fact that it’s absolutely vital. If you’re tired of overpaying on every energy bill due to inefficiencies in the system, dealing with a suddenly shut-down HVAC unit, or simply want to enjoy the superior comfort and reliability of a modern system, Dugan Air, Heating & Cooling is here to help.

We offer flexible, affordable financing through GreenSky®, helping make even the most big-ticket HVAC purchases accessible to those who need them. With approved credit, you can pay off your new system in monthly installments, subject to fair interest rates and flexible terms. For more information on financing an HVAC system with help from the Dugan Air team, don’t hesitate to get in touch with us today.

Dan Dugan

President
Dan Dugan is the President and co-owner of Dugan Air Heating & Cooling. A licensed HVAC professional with over 25 years of industry experience, Dan brings extensive technical expertise and leadership to the company he and Sue founded in 2009. He remains deeply involved in training, innovation, and maintaining the company’s reputation for integrity-driven service across Central Indiana.