What to know about electricity rates in Michigan
- The average Michigan electricity rate is 19.99 cents per kWh while the average national rate is 16.82 cents
- The cheapest electricity rate is 0.64 cents per kWh for Michigan residents
- Michigan's deregulated electricity market includes 56 providers
Best Michigan electricity rates
Michigan electricity rates range from 0.64 cents to 36.90 cents per kWh. The rates you find vary depending on the providers and plans available to you, and comparing companies is the best way to find better rates. Below are some rates from popular electric companies in Michigan.
What is the cheapest electricity company in Michigan?
| Rank | Provider | Service | Rate (c/kWh) | Customers |
|---|---|---|---|---|
| 1 | Croswell, Michigan Electric Utility | Bundled | 10.03 | 1,305 |
| 2 | Harbor Springs, Michigan Electric Utility | Bundled | 10.31 | 3,936 |
| 3 | Newberry Water & Light | Bundled | 10.58 | 1,465 |
| 4 | Zeeland Board of Public Works | Bundled | 11.22 | 7,157 |
| 5 | Wakefield Electric | Bundled | 11.48 | 1,058 |
| 6 | Daggett, Michigan Electric Utility | Bundled | 12.01 | 139 |
| 7 | Holland BPW - Holland Board of Public Works | Bundled | 12.05 | 31,775 |
| 8 | Niles Utilities | Bundled | 12.06 | 8,289 |
| 9 | Chelsea, Michigan Electric Utility | Bundled | 12.30 | 3,351 |
| 10 | Stephenson, Michigan Electric Utility | Bundled | 13.14 | 501 |
Because Michigan has a deregulated electricity market, you have the flexibility to shop around for a cheaper electricity bill. Many states don't offer this choice. If you're looking to reduce your energy bill, consider switching to a different provider or plan. Michigan electricity providers offer different types of plans for residents and businesses to satisfy a range of needs.
Average cost of electricity in Michigan
According to our data, the average electricity rate in Michigan is 19.99 cents per kWh. This equates to an average residential bill of $127.18 per month. The national average rate is 16.82 cents per kWh, and Michigan ranks as the 39th lowest priced state in the nation.
| Rate | Usage | Bill | |
|---|---|---|---|
| Michigan Average | 19.99c | 636 kWh | $127.18 |
| United States Average | 16.82c | 875 kWh | $147.24 |
Since the average price is 19.99 cents per kWh or $127.18 per month for residential electricity, prices lower than these can be considered affordable. Electricity rates in Michigan depend on your home size and usage, so the kWh rate is more useful when comparing your rate to the average.
Best electricity plans
In Michigan, the best electricity plans provide competitive rates, renewable energy options, and fixed or variable pricing. Top providers offer reliability, transparency, and customer incentives so you can save money and enjoy responsive support.
We've analyzed the prices, terms, and conditions of popular Michigan electricity plans. Below are our picks for the best residential plans in the state.
Compare Michigan electricity providers
There are 56 electricity providers in Michigan. While some providers only serve specific areas, you have multiple options for electricity wherever you are. Different providers can offer different specials, plan types, and sales throughout the year. However, always read the fine print of the energy plans you consider to avoid hidden penalties.
Residential electricity providers in Michigan
| Provider | Service Type | Rate (c/kWh) | Rate State Rank | Bill | Bill State Rank |
|---|---|---|---|---|---|
| Croswell, Michigan Electric Utility | Bundled | 10.03 | 1 | $70.51 | 9 |
| Harbor Springs, Michigan Electric Utility | Bundled | 10.31 | 2 | $58.21 | 2 |
| Newberry Water & Light | Bundled | 10.58 | 3 | $56.68 | 1 |
| Zeeland Board of Public Works | Bundled | 11.22 | 4 | $71.28 | 10 |
| Wakefield Electric | Bundled | 11.48 | 5 | $70.05 | 8 |
| Daggett, Michigan Electric Utility | Bundled | 12.01 | 6 | $77.28 | 13 |
| Holland BPW - Holland Board of Public Works | Bundled | 12.05 | 7 | $69.32 | 7 |
| Niles Utilities | Bundled | 12.06 | 8 | $97.01 | 34 |
| Chelsea, Michigan Electric Utility | Bundled | 12.30 | 9 | $77.07 | 12 |
| Stephenson, Michigan Electric Utility | Bundled | 13.14 | 10 | $79.19 | 16 |
Showing 10 of 56 providers
Business electricity rates in Michigan
Commercial rates are typically cheaper than residential rates in Michigan because businesses consume much more energy than homes on average. Businesses basically get a volume discount on electricity since they use so much. Our data shows the average business in Michigan pays 15.13 cents per kWh for electricity and has an average bill of $704.04 per month.
| Rate | Usage | Bill | |
|---|---|---|---|
| Michigan Average | 15.13c | 4,654 kWh | $704.04 |
| United States Average | 12.43c | 5,742 kWh | $713.88 |
Finding ways to reduce overhead costs is essential as a business owner. You have the opportunity to do that in a deregulated electricity market. Even reducing your electricity by one or two cents per kWh can make a huge difference when you have a high monthly bill. Compare commercial electricity rates to find the plan that makes the most sense for your business.
Best commercial electricity plans
Below are the top commercial electricity plans in Michigan.
| Provider | Contract Term | Rate | Plan |
|---|---|---|---|
3 months | 29.90¢ /kWh | ||
3 months | $3.00 /kWh | ||
6 months | $3.29 /kWh | ||
12 months | $3.49 /kWh | ||
6 months | $3.87 /kWh | ||
6 months | 35.90¢ /kWh | ||
18 months | $3.69 /kWh | ||
6 months | 36.90¢ /kWh | ||
9 months | $4.09 /kWh | ||
9 months | 37.90¢ /kWh | ||
12 months | $3.88 /kWh | ||
12 months | 37.90¢ /kWh | ||
24 months | $3.79 /kWh | ||
12 months | 38.90¢ /kWh | ||
18 months | $3.98 /kWh | ||
18 months | 39.90¢ /kWh | ||
36 months | $3.99 /kWh | ||
24 months | $4.38 /kWh | ||
18 months | 40.90¢ /kWh | ||
24 months | 41.00¢ /kWh | ||
| See All Plans | |||
How to switch Michigan electricity companies
When you're ready to switch electricity providers in Michigan, the process involves several straightforward steps that begin with comparing available rates.
Simply enter your ZIP code into a comparison tool like ours to view local options.
To make the switch:
- Keep your current electric bill handy to compare rates
- Choose a fixed-rate plan from licensed providers
- Complete the enrollment process with your selected Alternative Electric Supplier (AES)
- Pay the $5.00 switch fee if changing from DTE Electric
Your new provider will handle utility notifications, and the switch typically takes effect within one to two billing cycles.
When is the best time to switch energy providers in Michigan?
Choosing the ideal time to switch Michigan energy providers depends heavily on understanding peak versus off-peak usage patterns and seasonal rate variations.
You'll want to evaluate rates during off-peak seasons when pricing is more favorable, typically October through May.
Consider these timing factors:
- Compare DTE Energy's lower off-peak rate against Consumers Energy's rates
- Review summer peak charges (June-September) when rates increase considerably
- Analyze your household's energy usage patterns against each provider's time-of-use windows
- Time your switch before peak summer months to lock in better rates
Making an informed switch during off-peak seasons can maximize your potential savings.
How deregulated electricity works in Michigan
Michigan's deregulated electricity market operates through a unique hybrid system that allows both regulated utilities and alternative energy suppliers (AESs) to serve customers.
This structure was established in 2000 through Public Act 141, which introduced customer choice while maintaining utility ownership of generation assets.
Under current regulations, you can choose between your traditional utility company or an AES, but there's a catch: participation in electric choice programs is capped at 10% of a utility's average weather-adjusted retail sales.
While you might benefit from lower rates through AESs, access is limited since these programs are fully subscribed, with many customers waiting in line.
Types of electricity plans in Michigan
Four primary electricity plan types are available to Michigan residents: fixed-rate, variable-rate, indexed-rate, and renewable energy plans.
Fixed-rate plans provide stability with consistent rates throughout your contract, making budgeting easier.
Variable-rate plans offer flexibility as rates change monthly based on market conditions, potentially saving you money when prices drop.
Indexed-rate plans tie your costs directly to specific market indicators, offering transparency but higher risk.
If you're environmentally conscious, renewable energy plans let you choose 25%, 50%, or 100% green energy sources, with premium rates varying based on your participation level.
Compare Michigan electricity rates
Compare Michigan electricity rates to save money and avoid overpaying in the deregulated market. Your bill can vary greatly depending on the provider and plan structure. Take the time to read the fine print and do the math to figure out which is your best option.
Michigan electricity rates vs other states
Michigan electricity rate FAQs
In Michigan, a good electricity rate falls between 19 cents to 21 cents per kWh. Tired of high bills? Shop during spring and fall to lock in lower prices before HVAC use spikes in the summer or winter.
Michigan electricity rates currently average 19.99 cents per kWh, but you'll likely pay between 18 to 22 cents depending on your provider, location, and plan type.
Your electricity costs may be high in Michigan because DTE and Consumers Energy hold monopoly control. Customers face higher bills from aging infrastructure, frequent outages, and rate hikes for grid improvements.
Electricity rates fluctuate due to energy demand, fuel costs, grid infrastructure, and regulatory policies. While short-term declines may occur, long-term trends often show increases due to inflation, grid modernization, and shifts to renewable energy.