Electricity Rate in Michigan (2026): 21.20c/kWh Average
Michigan Electricity Rate: What You Need to Know
Michigan electricity averages 21.20 cents per kWh for residential customers as of March 2026, according to the EIA Electric Power Monthly. This is 2.64c above the US average of 18.56c/kWh. The average monthly bill for Michigan households is $127 based on typical usage of 632 kWh.
Generation mix: Natural gas 45%, nuclear 25%, renewables 20%, coal 10%. The fuel mix is a primary driver of electricity rates - states with abundant hydro or nuclear tend to have lower rates, while states dependent on imported petroleum (Hawaii) or natural gas pay more.
Year-over-year change: Michigan rates rose 9.6% year-over-year as of March 2026. This compares to the US average increase of 8.6% over the same period.
Deregulated: You Can Shop for a Better Rate
Limited competitive choice (10% cap) via Michigan PSC
How to shop for a better rate ->Your Michigan Electricity Bill Components
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