What drives electric bills in Indiana
Residential electricity in Indiana averaged 17.0¢ per kWh in January–July 2026, up 7.4% from 15.9¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 16.7¢. The typical home here used 901 kWh a month in 2024, close to the U.S. average.
- Rate cases and plant replacements. As coal plants retire, utilities build new generation, and the investment is recovered through higher base rates.
- Fuel adjustment charges. A line on your bill passes the cost of fuel straight through, so it rises when natural gas or coal prices do.
- Above-average usage. Indiana homes use more electricity than average, especially homes with electric furnaces or older heat pumps.
Who supplies your power
Duke Energy Indiana, AES Indiana (Indianapolis), NIPSCO (northern Indiana), Indiana Michigan Power (I&M) and CenterPoint Energy Indiana (Evansville) are the main investor-owned utilities. Rural co-ops and municipal utilities serve many smaller towns.
Ways to pay less in Indiana
- If you heat with an electric furnace or baseboard heat, sealing air leaks and adding attic insulation is the most valuable upgrade. Ask your utility about an energy audit.
- Look at your utility’s budget billing and rebate programs. Most offer rebates on smart thermostats, heat pumps and efficient appliances.
For example, a 1,500 W space heater running 8 hours a day costs about $62 a month at Indiana prices. Check what your appliances cost to run in Indiana.
Help paying your bill in Indiana
- Energy Assistance Program (EAP): Indiana’s LIHEAP program, handled by local community action agencies. It also protects eligible households from disconnection from December 1 to March 15.
- Utility hardship funds: most Indiana utilities have a fund that helps customers who don’t qualify for state aid, such as Duke Energy’s Share the Light.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in Indiana?
A typical 7 kW rooftop system in Indiana produces roughly 8,750 kWh a year, about 81% of what an average home here uses. At the state’s average price of 17.0¢, that power is worth about $1,491 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How Indiana compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| Indiana | 17.0¢ | 901 | $154 |
| Kentucky | 14.3¢ | 1,047 | $149 |
| Ohio | 18.7¢ | 846 | $158 |
| Illinois | 19.2¢ | 693 | $133 |
| Michigan | 21.5¢ | 618 | $133 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.