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I would not use a heat pump in Northern Indiana. They are not effective in cold climates. You will not be happy if you do this. But, I do not know what your options are. Here in Central N.J. everyone uses a fossil fuel furnace or boiler because the required fuels are either fed right to the house or are easily available. If that is not the case where you are and your available energy source is electric only. I would seriously consider the potential savings you think you might incur as the heat pump is only effective at outdoor temps of 35* or so and up. Below that you will be relying on electric anyway so your savings would only occur during a few months out of each year and the initial cost of the heat pump installation will buy a lot of electricity. Thus the pay back time would be quite long. For the record my energy cost here is about .11cents per kWh for electric and $1.28 per therm of natural gas.
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