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Aerial view of solar panels in a green field on a sunny day in Goshen, Indiana
Source: Wirestock / Getty

STATEWIDE — Electricity prices are rising nationwide, including in Indiana, as demand for power continues to grow. At the same time, solar energy and battery storage are expanding quickly and now make up a share of new electricity generation added to the grid.

Indiana has emerged as one of the fastest-growing solar markets in the country. In 2025, the state ranked as the third-largest solar market, surpassing traditional Sunbelt states such as Arizona and Florida.

Sean Gallagher of the Solar Energy Industries Association said the state’s growth reflects rising electricity demand from data centers, expanding manufacturing and a growing population.

“Indiana has become one of the most important solar markets in the country,” Gallagher said. “In 2025, the state ranked third for new solar development, even ahead of states that historically dominate the solar industry.”

Gallagher said utilities and customers are increasingly turning to solar power because it can be deployed quickly and affordably.

“Utilities and customers alike understand that solar power is the fastest way to add new power to the grid,” he said. “It’s also one of the most affordable ways to meet rising energy demand.”

Demand is expected to increase significantly as more data centers and artificial intelligence facilities are built across the country.

“Those data centers and AI facilities are some of the largest drivers of new electricity demand,” Gallagher said. “The fastest way to supply those facilities is to build new energy resources, and today the fastest resources to deploy are solar and battery storage.”

Homeowners are also adopting solar and storage systems to manage their electricity costs.

“Customers who want to add solar and battery storage to their homes can often do so in a matter of weeks or months,” Gallagher said. “Once the system is installed, many customers see reductions in their utility bills right away.”

Gallagher said utilities are increasingly recognizing that adding solar generation can help keep costs down across the broader energy system.

“We’re seeing this nationally,” he said. “When you add more solar power — especially when it’s paired with battery storage — it strengthens the grid and helps keep electricity prices lower for everyone.”

Battery storage systems allow excess energy produced during the day to be stored and used later when demand is higher.

“As we add storage to solar facilities and build standalone storage projects, the grid becomes more reliable and more resilient,” Gallagher said.

Support for solar energy also crosses political lines, he added.

“People across the political spectrum support solar power,” Gallagher said. “Polling consistently shows strong support from conservatives as well as liberals.”

However, Gallagher warned that some planned solar projects in Indiana face political challenges that could slow development.

“If we can’t build the solar projects that are planned in Indiana and across the country, we’re likely to see electricity prices rise,” he said. “Solar and storage are some of the most effective tools we have to meet demand and keep energy affordable.”

Can Solar Help Keep Indiana’s Electric Bills Down? was originally published on wibc.com