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Energy Affordability in Michigan: What You Need to Know
Michigan Compares Favorably on Energy Costs Across States

In 2024, Michigan ranked 18th nationally for annual combined home electric and natural gas bills. This means residential customers in 32 states and the District of Columbia pay higher average annual electric and heating costs than Michigan residents, according to the U.S. Energy Information Administration (EIA), which publishes information on the energy costs paid by residential customers in each state and the District of Columbia.

Bar Chart showing the 2024 Annual (Electricity and Natural Gas) Residential Bill State rankings, with Michigan ranking 18th nationally for lowest bills.

Michigan's residential electric bills in Michigan are also lower than both the national and regional average.

  • According to EIA data, the average Michigan household pays $119.31 per month for electricity, 16% lower than the national average of $142.26 per month, and also lower than the $121.66 per month average for the East North Central Region, which includes Michigan, Illinois, Indiana, Ohio, and Wisconsin. In 2024 (the most recent year available), Michigan had the 15th lowest residential electric bills in the country.

While average electric rates are often used to compare states, a comparison of rates alone, while ignoring overall energy costs, provides an incomplete picture of what Michigan customers are paying for their energy.