IN state report

Is a home battery worth it in Indiana?

In Indiana the 2026 case for a battery is mostly self-consumption plus storm backup, because net billing pays far below retail for exports. There is no state or utility residential battery rebate, so buyers should not expect an incentive to carry the economics.

✓ Verified 2026-07-01

Indiana at a glance

Average residential rate: 18 cents per kWh
Net metering: Retail net metering was phased out by Senate Bill 309 (2017) and upheld by the Indiana Supreme Court. Investor-owned utilities now use net billing: exports are netted instantaneously and excess is credited at 1.25 times the utility's wholesale locational marginal price (LMP), which is well below retail. This is a below-retail avoided-cost-style credit, not one-to-one. Legacy net-metering customers keep their arrangement for a set grandfather window.
State battery incentive: None we can source for 2026
Time-of-use plans: Less central here

What drives battery value here

Tornadoes, severe summer thunderstorms and straight-line wind, plus winter ice storms can cause multi-hour to multi-day outages. Backup is the clearest honest value driver here. With exports paying only about 1.25x wholesale, a battery is better used to store your own solar and provide storm backup than to sell to the grid.

The federal picture in 2026

The federal residential purchase credit (Section 25D) expired on December 31, 2025, so a 2026 cash buyer gets nothing federal. The only surviving federal pathway is Section 48E, which a company claims on a lease or PPA. State and utility programs, where they exist, now do the heavy lifting.

Sources

Rates and incentive amounts change; always confirm current terms with your utility or program administrator.

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Indiana home battery FAQ

Is there a state battery incentive in Indiana?

Indiana has no statewide home-battery rebate we can source for 2026. The federal residential purchase credit (Section 25D) also expired at the end of 2025, so a cash buyer gets nothing federal; the only federal pathway left is Section 48E through a lease or PPA, where the owner claims it.

What is the average electricity rate in Indiana?

About 18 cents per kWh on average (EIA, April 2026). Your own rate and rate plan matter more than the state average; run your utility's numbers in the calculator.

Does Indiana have net metering?

Retail net metering was phased out by Senate Bill 309 (2017) and upheld by the Indiana Supreme Court. Investor-owned utilities now use net billing: exports are netted instantaneously and excess is credited at 1.25 times the utility's wholesale locational marginal price (LMP), which is well below retail. This is a below-retail avoided-cost-style credit, not one-to-one. Legacy net-metering customers keep their arrangement for a set grandfather window.