The average residential electricity rate in Indiana (IN) is $0.1440 per kWh as of April 2026, according to the US Energy Information Administration (EIA). This is far below the national average of $0.1805/kWh, ranking Indiana #23 out of 51 (all 50 states plus Washington DC), where #1 is the cheapest and #51 is the most expensive. The average Indiana household consumes 1,063 kWh per month, resulting in a monthly electric bill of approximately $153 and annual electricity costs of about $1,836.
Indiana reduced coal from 70%+ of generation in 2015 to about 30% in 2026, helping keep rates competitive.
This comprehensive guide covers Indiana electricity rates, historical trends, utility providers, bill calculation, solar savings potential, and actionable tips to reduce your electric bill. All rate data is sourced from the US EIA and updated monthly. Use our electricity cost calculator for personalized estimates.
Indiana residential electricity rates have increased 16% over the past six years. The table below shows the trajectory compared against the national average.
| Year | Indiana ($/kWh) | National Avg | Difference |
|---|---|---|---|
| 2020 | $0.1237 | $0.1322 | -6% |
| 2022 | $0.1350 | $0.1492 | -10% |
| 2024 | $0.1400 | $0.1680 | -17% |
| Apr 2026 | $0.1440 | $0.1805 | -20% |
Indiana has a regulated electricity market. The primary providers are: Indiana Michigan Power, Duke Energy Indiana, AES Indiana.
Indiana generates electricity from: Natural gas 35%, Coal 30%, Wind 18%, Solar 9%, Other 8%.
Your monthly electric bill = kWh Used × Rate per kWh. The average Indiana household uses 1,063 kWh/month.
Indiana has historically relied on coal but is rapidly transitioning to natural gas, wind, and solar. AES Indiana and Duke Energy are retiring coal plants.
Universal strategies: adjust thermostat 2-3 degrees (saves 5-10% on HVAC), switch to LEDs (see our LED savings calculator), unplug phantom loads (saves $100-200/year), and run major appliances during off-peak hours if your utility offers time-of-use pricing. For larger investments, consider a heat pump, better insulation, or a smart thermostat.
Indiana receives 4.2 peak sun hours/day. A 6 kW system produces ~7,542 kWh/year, saving ~$1,086/year. With the 30% federal ITC, payback is typically 6-9 years. Use our solar panel calculator and solar ROI calculator for personalized estimates.
| State | Rate ($/kWh) | Avg Bill | Market |
|---|---|---|---|
| Indiana (IN) | $0.1440 | $153 | Regulated |
| Illinois (IL) | $0.1530 | $117 | Deregulated |
| Kentucky (KY) | $0.1198 | $143 | Regulated |
| Michigan (MI) | $0.1810 | $129 | Partially Deregulated |
| Ohio (OH) | $0.1490 | $125 | Deregulated |
Data source: US Energy Information Administration (EIA), Electric Power Monthly, April 2026. Rates shown are average residential rates and may differ from your specific utility tariff. Solar estimates assume a 6 kW system with 82% efficiency factor. Always verify current rates with your utility provider.