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Indiana (IN) electricity and natural gas rates

Electricity

16.73¢

per kWh

Natural gas

$2.33

per therm

Gas and electricity in the same unit

A therm is 29.3 kilowatt hours of energy, so Indiana's gas works out at 7.94¢ per kWh against 16.73¢ for electricity.

That compares the energy you buy, not the heat you get. A furnace throws away a fifth of every therm up the flue, while a heat pump delivers two to three times the heat in a kilowatt hour — so the cheaper unit here is not automatically the cheaper way to heat a house.

Residential sector, US Energy Information Administration, 2026-07. Updated monthly.

How Indiana compares

At 16.73¢ per kWh, Indiana is below the national average of 19.26¢, making it the 29th cheapest of the 51 states we track.

What a typical Indiana household uses

Electricity a month

935 kWh

Bill a month

$158

Households in Indiana use 9% more electricity than the national average and pay 5% more than average. Cheap power absorbs most of that: the meter turns faster here, but at 16.73¢ each unit costs less than it does nationally. The climate is fairly balanced — 5,500 heating degree days against 1,000 cooling ones — so neither season dominates the bill.

More on this: the average electric bill in Indiana, including how far it swings between seasons.

Averaged over twelve months across 3,039,627 residential accounts in Indiana. Source: EIA.

What this means for heating

Indiana sees around 125 freezing nights a year. Whether a heat pump beats a furnace here depends on the gap between those two prices above — not on the equipment.

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