What drives electric bills in Michigan
Residential electricity in Michigan averaged 21.5¢ per kWh in January–July 2026, up 8.8% from 19.8¢ in the same months a year earlier (the U.S. average went up 6.9%). In July 2026, the latest month available, it was 23.1¢. The typical home here used 618 kWh a month in 2024, 28% less than the U.S. average, so a high bill usually points to the price per kWh or to one big appliance.
- Time-of-use rates. Both DTE and Consumers Energy put most homes on time-of-use plans that charge more on weekday afternoons and early evenings, especially in summer. Running the A/C, dryer and dishwasher during those hours costs more.
- Frequent rate cases. DTE and Consumers file for rate increases often, mostly to pay for poles, wires, tree trimming and new generation.
- Power Supply Cost Recovery. A charge on your bill passes through the cost of fuel and purchased power and is adjusted regularly.
Who supplies your power
DTE Electric serves Detroit and southeast Michigan, and Consumers Energy serves much of the rest of the Lower Peninsula. The Upper Peninsula is served by UPPCO, We Energies and others, plus co-ops and municipal utilities.
Ways to pay less in Michigan
- Check which time-of-use plan you are on and the peak hours printed on your bill. Pre-cool the house before the peak starts and run large appliances in the evening or on weekends.
- DTE and Consumers both offer free or discounted home energy assessments, appliance recycling with a cash reward, and rebates on smart thermostats.
For example, a 1,500 W space heater running 8 hours a day costs about $79 a month at Michigan prices. Check what your appliances cost to run in Michigan.
Help paying your bill in Michigan
- Michigan Energy Assistance Program (MEAP): state-funded help with energy bills and shutoff protection, provided through local agencies. Call 211 to find one.
- Low-income credits: DTE and Consumers offer monthly bill credits for qualifying customers. Seniors and low-income households also get winter shutoff protection from November to March.
Statewide help is in addition to the federal programs, such as LIHEAP and weatherization, that the bill checker above lists. Call 211 to find the agency that handles them near you.
Is solar worth it in Michigan?
A typical 7 kW rooftop system in Michigan produces roughly 8,050 kWh a year, about 100% of what an average home here uses. At the state’s average price of 21.5¢, that power is worth about $1,733 a year. What you actually save depends on your roof, the price you pay for the system, the 30% federal tax credit rules in effect when you buy, and how your utility credits the power you send to the grid. Get at least three quotes before you decide.
How Michigan compares with nearby states
| State | Price per kWh | kWh a month | Typical bill |
|---|---|---|---|
| Michigan | 21.5¢ | 618 | $133 |
| Indiana | 17.0¢ | 901 | $154 |
| Ohio | 18.7¢ | 846 | $158 |
| Wisconsin | 19.0¢ | 645 | $123 |
| U.S. average | 18.2¢ | 863 | $157 |
Price: average residential price, January–July 2026, U.S. Energy Information Administration (Electric Power Monthly, tables 5.6.A and 5.6.B). Usage: average monthly consumption per home, 2024, EIA form EIA-861. Typical bill = typical usage × current average price. Solar output is a rough estimate for a south-facing roof.