In July 2026, homes in Indiana paid an average of 16.73¢ per kWh, the 23rd most expensive of the 50 states and DC and 8.6% below the U.S. average of 18.31¢.
That price is up 3.4% from a year earlier.
Over the past 12 months the average home in Indiana used 935 kWh a month, for an average bill of $158 (U.S.: $157).
About electricity in Indiana
Coal is still Indiana's largest source of electricity, with natural gas close behind. Most homes are served by investor-owned utilities, with co-ops covering much of the rural state.
- coal 45%
- natural gas 36%
- wind 9%
- solar 6%
- other 3%
The Indiana Utility Regulatory Commission is the state agency that regulates electric utilities in Indiana.
What drives electricity prices in Indiana
Coal is still Indiana's largest source of electricity, though its share has fallen from most of the state's power two decades ago, with natural gas close behind and wind and solar growing. Utilities plan to retire much of the remaining coal fleet over the next decade, but several closures have been pushed back as demand rises, including from new data centers in northern Indiana.
Most homes are served by investor-owned utilities, including Duke Energy Indiana, AES Indiana, NIPSCO, CenterPoint and Indiana Michigan Power, with rates set by the Indiana Utility Regulatory Commission. Rural electric cooperatives serve much of the countryside. There is no retail choice.
Most of the state is in the MISO regional grid, while Indiana Michigan Power's area, including Fort Wayne and South Bend, is part of PJM. Prices are below the national average, and Indiana generates about as much electricity as it uses.
Average electric bill in Indiana
Over the last 12 months the average Indiana home paid $158 a month for electricity, the 21st highest of the 50 states and DC. In July 2026 the average bill was $205 for 1,225 kWh.
Over the last 12 months, homes in Indiana used the most electricity in July, when air conditioning drives usage up: an average of 1,225 kWh and a $205 bill. The lightest month was April, at 688 kWh and $123.
What would I pay?
| Monthly use | Per month | Per year |
|---|---|---|
| 500 kWh × 16.73¢ | $83.65 | $1,004 |
| 1,000 kWh × 16.73¢typical | $167.30 | $2,008 |
| 1,500 kWh × 16.73¢ | $250.95 | $3,011 |
| 2,000 kWh × 16.73¢ | $334.60 | $4,015 |
Estimate your own bill
Cost of electricity in Indiana by month
Businesses in Indiana paid 13.30¢ per kWh in July 2026 (the 26th cheapest for business power), and industrial users paid 9.16¢.
Electric companies in Indiana
46 utilities deliver electricity to homes in Indiana. The largest is Duke Energy Indiana, LLC, serving 808,572 homes.
| Utility | Homes served | Avg. home rate |
|---|---|---|
| Duke Energy Indiana, LLC | 808,572 | 14.98¢ |
| AES Indiana | 469,634 | 14.69¢ |
| Northern Indiana Pub Serv Co | 433,889 | 22.05¢ |
| Indiana Michigan Power Co | 425,007 | 17.16¢ |
| Southern Indiana Gas & Elec Co | 134,700 | 19.78¢ |
| Hendricks County Rural E M C | 38,554 | 13.68¢ |
| South Central Indiana REMC | 35,216 | 17.54¢ |
| Northeastern Rural E M C | 31,034 | 15.43¢ |
| City of Anderson | 29,600 | 12.67¢ |
| Tipmont Rural Elec Member Corp | 29,540 | 16.37¢ |
"Avg. home rate" is what each utility's full-service residential customers paid on average in 2025 (revenue ÷ kWh sold). Delivery-only utilities have no full-service rate.
Can you choose your electricity supplier in Indiana?
No. Households in Indiana buy electricity from the utility that serves their address. Rates are set by the state utility commission (for investor-owned utilities) or by the utility's own board (for co-ops and city-owned utilities).
Indiana compared with neighboring states
| State | Price per kWh | Avg. monthly bill (12 mo.) |
|---|---|---|
| Kentucky | 13.81¢ | $154 |
| Indiana | 16.73¢ | $158 |
| Illinois | 19.22¢ | $132 |
| Ohio | 19.45¢ | $158 |
| Michigan | 23.05¢ | $133 |
Indiana electricity FAQ
What is the average electric bill in Indiana?
The average home in Indiana paid $158 a month over the last 12 months, using 935 kWh. That is the 21st highest of the 50 states and DC. In July 2026 alone, the average bill was $205.
How much does electricity cost per kWh in Indiana?
Homes paid an average of 16.73¢ per kWh in July 2026, 8.6% below the U.S. average of 18.31¢. Businesses paid 13.30¢ per kWh.
Which month has the highest electric bills in Indiana?
July, in the last 12 months of data: the average bill reached $205 (1,225 kWh), compared with $123 in April, the lowest month.
Can I choose my electricity provider in Indiana?
No. Households in Indiana buy electricity from the utility that serves their address, at rates set by regulators or the utility's board.
What are the largest electric companies in Indiana?
By number of residential customers in 2025: Duke Energy Indiana, LLC (808,572), AES Indiana (469,634), Northern Indiana Pub Serv Co (433,889).
Latest IN electric rates, bills and usage: U.S. Energy Information Administration retail sales data (forms EIA-861M and EIA-861), latest month July 2026. Utilities and suppliers: EIA-861 (2025). Bills and usage are revenue and sales divided by customers. Last updated 2026-10-20.