Electricity rates in Michigan

Updated with EIA data for August 2026

Michigan electricity rates over time

Average rate, bill and usage by year

Rates are weighted by kWh sold. Bills and usage are averages per residential customer.

Rates by sector (August 2026)

How much does electricity cost in Michigan?

At Michigan's 12-month average residential rate of 21.28¢ per kWh, here is the energy cost for common monthly usage levels, next to the US average. Fixed customer charges, taxes and fees vary by utility and are not included.

Michigan electricity prices month by month

Over the last 12 months, the average residential rate ranged from 19.52¢ (January 2026) to 23.05¢ (July 2026), and homes used the most electricity in July 2026 (914 kWh on average).

Michigan vs neighboring states

Michigan's 12-month average rate is higher than all of its neighbors.

What appliances cost to run in Michigan

All appliance costs · Appliance cost calculator for Michigan

Can you choose your electricity provider in Michigan?

In Michigan, most households buy electricity from their local utility at regulated rates, so shopping for a different supplier is usually not an option. The best ways to lower your bill are to reduce usage and check whether your utility offers time-of-use or other rate plans.

Solar snapshot

Each kW of solar panels in Detroit produces about 1,291 kWh a year (NREL PVWatts). Sized for an average Michigan home, a 6.0 kW system would cost about $15,420 before any incentives and pay for itself in about 9.6 years. See the full Michigan solar estimate.

Guides for Michigan

Electric Bills

Why Electricity Prices Differ So Much by State

Electricity costs several times more per kWh in some states than others. EIA data shows how fuel mix, grid costs, regulation and climate drive the gap.

Nov 8, 2026 · 5 min read

Saving Energy

How to Lower Your Electric Bill: 12 Practical, Sourced Ways

Practical ways to lower your electric bill, from free thermostat and standby-power fixes to LEDs, insulation and rate plans, each backed by DOE, EPA or EIA guidance.

Nov 9, 2026 · 5 min read

Solar

Is Solar Worth It in 2026? What Changed After the Federal Tax Credit Ended

The 25D federal credit ended for systems installed after 2025. Here is what now decides whether solar pays off, and how to estimate your own payback.

Nov 9, 2026 · 6 min read

Michigan electricity calculators

• Electric bill calculatorEstimate a monthly bill at Michigan's average rate.
• Electricity cost calculatorCost of any number of kWh in Michigan.
• Solar panel calculatorSystem size, cost and payback for a Michigan home.
• EV charging costHome charging cost per mile in Michigan.

Source: U.S. Energy Information Administration (EIA), Form EIA-861M monthly sales and revenue data. Latest month: August 2026. Recent months may be preliminary and revised by EIA. See how we calculate.