Residents in Munster, IN who request quotes on the EnergySage Marketplace spend an average of $299 monthly on electricity. That adds up to $3,588 per year. A different way to look at it is that a typical Munster, IN resident uses 1,571 kWh of electricity per month and 18,852 kWh over the year.
(For what it’s worth: Munster, IN residents shopping for solar on EnergySage may use more electricity than a typical household.)
The easiest way to compare electricity costs across regions is to look at the electricity rate. In the U.S., residential rates generally range from 11 ¢/kWh all the way up to 34 ¢/kWh.
As of February 2026, the cost of electricity in Munster, IN is 19 ¢/kilowatt-hour (kWh)—roughly 4% lower than the national average cost. That number is based on real-world electric bills shared with EnergySage over the past 12 months. You can compare that number to the most recent average state electric price reported by the U.S. Energy Information Administration (EIA).
Indiana’s electricity market is regulated, so you can’t choose which company supplies your electricity. Instead, the state determines your electric utility company based on where you live. There are three primary electricity companies in Indiana, all of which are Investor Owned Utilities (IOUs), meaning they're private for-profit companies:
AES Indiana
Indiana Michigan Power
Northern Indiana Public Service Company
While the IOUs cover much of the state, some towns and cities are served by municipally-owned, not-for-profit electric companies that aren't subject to the same requirements as IOUs. These municipal utilities may offer lower rates, but may not offer benefits like net billing.
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When you pay your electric bill, you’re not only covering the costs to produce that electricity, but also the costs of running and maintaining the electrical grid, as well as public benefit funds that promote things like renewable energy and energy efficiency.
Electric bill costs are rolled into fixed (monthly customer charges) and variable charges (¢/kWh that you use).
Fixed charges, like the flat fee for having a meter, generally remain the same monthly unless your utility makes a policy update.
Your variable charges will change every month and depend on your electricity rate and how much electricity you use.
Your electric bill's variable charges will include a supply (or generation) charge and a transmission and distribution (or delivery) charge. The supply charge covers the cost of electricity generation, while the transmission and distribution charges cover the cost of delivering it to your home.
Most electricity plans in Indiana are fixed-rate. This means you pay the same price for every kWh of electricity and it doesn’t change based on the time of day or by level of demand. Some utility companies offer variable-rate plans, like time-of-use rates or demand charge plans. But those aren't super common for residential customers in Indiana.
How clean is the electricity in Indiana?
Due to the complex nature of utility grids, it's not easy to pin down exact data regarding exactly where the energy that goes to your specific home comes from, but according to the U.S. Energy Information Administration, about 84% of the electricity on Indiana’s utility grid comes from fossil fuels—primarily coal—as of August 2025.
Only about 13% comes from renewable sources. Given that most of the grid’s energy comes from fossil fuels, installing a home solar panel system in Indiana will almost always shrink your carbon footprint.
Some electricity suppliers give you the option to pay a bit more so that most (or even all) of your electricity comes from renewable sources. If you’re unwilling or unable to go solar in Indiana but still want to reduce your carbon footprint, this is a great alternative. It just won’t save you any money in most cases.
As long as you have a suitable roof, one of the surest ways to save on energy is to go solar—ideally with a vetted contractor offering a competitive price.
Solar panels will reduce or even eliminate your electric bills in the short term and protect you against rising electricity costs in the long run, too. The amount you save depends on how much you spend on electricity now and how much of your electric bill you can offset with solar energy.
Solar panels are a big investment, but Munster, IN homeowners who install them—and pay upfront—break even after an average of just 12.31 years. Then, the solar panels will continue to produce free electricity for years to come.
Does Indiana offer net metering?
On sunny days, you can count on your solar panels to produce more energy than your home needs at any given moment.
That extra energy doesn’t go to waste. Utility companies in Indiana (NIPSCO, Indiana Michigan Power, and AES) offer net billing solar buyback programs. Similar to net metering, you can still sell extra energy to the utility, but you’re compensated at a lower rate than what you’ll pay for electricity. How much you’re paid for each kWh depends on the utility, but it’s usually about half the price.
Net billing is not as beneficial to you as net metering. While you can still offset the cost of your energy bills, it’s less likely you’ll cover the entire payment with credits.
How much can you save with solar?
Electricity rates in the Hoosier State are going up, which means you can save big when you go solar in Munster, IN.
Just take a look at how much you'll spend on electricity over time based on your current bill. It’s easy to see how going solar can pay off quickly.
Electricity cost over time in Indiana
Current monthly electric bill | 10-year electricity cost | 20-year electricity cost | 30-year electricity cost |
|---|---|---|---|
$50 | $6,800 | $15,000 | $27,000 |
$100 | $14,000 | $31,000 | $54,000 |
$150 | $20,000 | $46,000 | $80,000 |
$200 | $27,000 | $62,000 | $110,000 |
$250 | $34,000 | $77,000 | $130,000 |
Assuming a 3% annual increase based on inflation and average annual electric rate increases in Indiana.
Let's assume you pay $299 for electricity monthly (the Munster, IN average) and that electricity prices increase by 3% annually. Let's also assume you buy your solar panel system upfront and that it costs you $44,000 before any available incentives.
In the first year with solar, you'll avoid spending $3,600 on electric bills. Over five years, you'll avoid $18,900; by 10 years, you'll have avoided $40,400. Solar panels are usually covered under warranty for 25 years—by then, you'll have avoided spending $124,300 on electric bills in Munster, IN.
The average payback period in Munster, IN is 12.31 years, so by this point, you've already broken even on your investment. When you subtract your upfront installation cost, you'll pocket $79,900 over 25 years with solar.
Your solar savings depend on you
How much your utility company charges for electricity is a big indicator of how much you'll save with solar. But your exact solar savings depend on your unique situation—including your energy usage, roof layout, system size, and how you pay for your system.
Here are some reasons your savings could be below average:
You don’t use much electricity, or your roof is small or has a less-than-ideal layout. You might have a relatively long payback period, so you'll save a little less over time.
You don't install enough solar panels to 100% offset your energy use. You’ll pay less up front but save less in the long run.
You finance your solar panel system with a loan or sign a lease or power purchase agreement (PPA) instead of paying up front. These types of arrangements can make a lot of sense for keeping your capital flexible and will allow you to start saving sooner. But they will cut into your long-term savings.
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