What Is The Average Electric Bill in Michigan [2024 Updated]

Let's examine the averages of different states across the nation to understand where Michigan stands in terms of electricity consumption, rates, and the average electric bill.

As illustrated in the table above, Michigan residents pay lower prices for electricity than residents of other states, like New York, Texas, and Utah. With an average rate of 19.44 ¢/kWh, Michigan currently ranks 15th in the United States in terms of average electric bill.

What Are The Electricity Rates in Michigan?

Electricity Rates refer to the price consumers pay for each unit of electricity consumed in their apartment or commercial building.

In Michigan, electricity was deregulated in 1998, which means that the residents are free to choose their own electricity service provider. However, as per government policies, electricity retailers are only allowed to cover 10% of the sales volume, which indicates that there are fewer electricity providers compared to other states where electricity is deregulated.

The average residential electric price in Michigan is 19.44 ¢/kWh. The commercial electric price is 14.39 ¢/kWh, and the industrial average is 8.45 ¢/kWh.

Here is a detailed average rate, along with different investor-owned providers in Michigan:

Source: State of Michigan

How Much Does It Cost To Live In Michigan?

With great infrastructure, booming economics, educational centers, and a great culture, people from different states prefer moving to Michigan. Given that more and more people are choosing this state, it becomes important to learn how much it costs to live here.

The average cost of living in Michigan depends upon different factors, like location, utility usage at home, and mode of transport. A typical Detroit, Michigan, household spends yearly $5,496 on their food and $12,566 on transportation.

Some of the most common utilities that one uses in Michigan are:

• Electricity: Electricity is an important utility, and an average resident here pays roughly $126.75 monthly.
• Phone Bill: Mobile data and mobile calling alone would cost roughly $114 per month, depending on a person's monthly usage.
• Gas: Due to fluctuations in weather and inclination towards the use of a stove for cooking, a typical Michigan resident pays $74 per month.
• Water: Like most places, monthly water charges are included in the apartment rent. However, if paid separately, it costs $29 per month.
• Internet: An Internet connection for a 60 Mbps or higher plan would cost roughly $30 monthly. The Internet charges also vary depending on the service provider and the monthly data plans.

Apart from the common utilities mentioned here, several other expenses constitute the average monthly cost of living in Michigan state.

• Housing : On average, Detroit residents spend $21,746 annually on housing, which is roughly 31.6% of their annual budget.
• Food : Detroit-area households spend $5,496 on food, including groceries and other related expenses, which amounts to 12.3% of their annual budget.
• Transportation : In the Detroit area, residents spend $12,566 on transportation, which includes the purchase and upkeep of their private vehicles.

Here's an illustration of the average monthly cost of living in Michigan:

Note: The monthly bills of different utilities are subject to change.

What Impacts the Electric Bill In Michigan?

Electricity prices vary by locality and monthly consumption of electricity. However, the price of electricity is influenced by several factors encompassing the entire process of generating and delivering electricity to the end users. Some of the prominent factors are:

Fuel Prices

The prices of natural gas and petroleum fuels play a very important role in determining electricity prices. If there are fluctuations in the market demand and supply constraints, it will directly impact the expenses associated with generating electricity.

Transmission & Distribution System

The transmission and distribution network facilitates the transportation of electricity from power plants to end-users and also incurs substantial expenses that directly affect the monthly average electric bill. Factors such as construction, operation, and maintenance contribute to the overall electricity prices.

Weather Conditions

Weather patterns also influence electricity prices. As the surge in demand increases upward because of heatwaves and cold spells, electricity consumption also increases.

Appliances

Outdated appliances tend to be less energy-efficient and consume more electricity to perform the same tasks than newer models.

Square Footage

Household size impacts utility costs. The electricity bill in a Michigan apartment with one bedroom and kitchen would be significantly lower than in an apartment with three bedrooms and multiple residents.

How To Save Money On Your Electricity In Michigan?

There are several measures that you can take if you aim to save money on your electricity bill in Michigan, like:

Efficient Use of Electrical Appliances

You can replace your old light bulbs with the Energy Star labels, as they use up to 90% less energy than the standard light bulbs.

Maintenance & Upgrade

You will notice how even a quick maintenance of the air filters can dramatically change the heating efficiency in your Michigan apartment.

Use Solar Energy

Solar energy presents a significant opportunity for homeowners aiming to reduce their monthly electricity bills. By installing an 8.5 kW solar panel system, one can offset 100% of their annual electricity consumption.

The average cost to install a solar panel system might be around $28,000, but one can anticipate substantial savings over time.

With a properly installed solar panel, one can save $2,000 in the first year, $10,600 over the next five years, $22,400 in the next 10 years, and a staggering $50,600 over 20 years on electric bills. As you can see from the following chart, the cost of a one-time investment in solar panels would remain constant, but your savings will increase multiplefold.

That said, if someone is planning to use solar power to reduce their average electricity bill in a Michigan apartment and cannot invest a large amount in the setup, they can get Jackery Solar Generators. The cost of using Jackery Solar Generators is substantially lower, and one can charge 99% of their household appliances.

Jackery Solar Generators for Lowering Your Electric Bills

Jackery is a leading brand in manufacturing and selling solar generators, solar panels, and battery backups. Jackery Solar Generators are equipped with quality  portable power station that can charge up to most of your household devices during power outage. A Jackery Solar Generator can easily be charged using car chargers and AC adapters or by plugging them with Jackery SolarSaga Panels.

The Jackery SolarSaga Panels absorb the sun's rays and convert them into DC electricity through its monocrystalline silicon solar cells. The pure sine wave inverter of the Jackery Explorer Portable Power Station then converts the stored electricity into AC current, which helps in charging household appliances like air conditioners, room heaters, coffee makers, etc. With Jackery Solar Generators, one can substantially reduce their average electric bill in a Michigan apartment.

Jackery Solar Generator 3000 Pro

The Jackery Solar Generator 3000 Pro is equipped with a stable NMC battery with a capacity of 3024 Wh. With a powerful output capacity, it can charge 99% of household appliances, like televisions, coffee makers, electric grillers, etc. The Jackery Explorer 3000 Pro Portable Power Station can be fully charged in under 3.5 hours by plugging it into 6*Jackery SolarSaga 200W Solar Panels.

Jackery Solar Generator 2000 Plus

The Jackery Solar Generator 2000 Plus has a LiFePO4 battery with a capacity of 2042.8 Wh. The Jackery Explorer 2000 Plus Power Station can also be expanded up to 12 kWh and up to 24 kWh when paired with the Jackery Battery Pack 2000 Plus. When plugged in with 6*Jackery SolarSaga 200W solar panels, it will take only 2 hours to fully recharge the Jackery Solar Generator 2000 Plus.

Michigan Average Electric Bill FAQs

What size of solar generator do I need for my house in Michigan?

The size of the solar generator will vary depending on your apartment size and the appliances you intend to use in your Michigan apartment. In some cases, you will require small solar generators, while in others, you will require a high-capacity solar generator, like Jackery Solar Generator 3000 Pro.

Here's a scenario that would help you understand the size of the solar generator that you would need in your Michigan house. Suppose you need to charge an air conditioner (1500 W), a laptop (500 W), and an air purifier (200 W) -- all at the same time with the Jackery Solar Generator 3000 Pro:

Working Hours = Battery Capacity in Wh * 0.85 / Wattage Consumption of the Appliances

Working Hours = 3024 Wh * 0.85/2200 W = 1.16 H.

How much is electricity per month in Michigan?

The average monthly consumption of a Michigan apartment is roughly 652 kWh, and with an average electric price of 19.44 ¢/kWh, the average monthly electricity bill is around $147.70.

Why are Michigan's electric rates so high?

There can be different reasons that might be affecting your monthly electricity bills. However, Michigan's clean energy regulations and new electricity-related laws have significantly increased the electric rates for residents and commercial properties.

How much is the average electric bill in the US per month?

The nationwide average electric consumption is around 899 kWh, and with an average rate of 16.43 ¢/kWh, the monthly average electricity bill in the US comes around to be $135.25

What months are electric bills the highest?

The average electricity consumption in Michigan increases from June to September, leading to a rise in electric bills.

Final Thoughts

The average electric bill in Michigan directly affects the cost of living in this state. Even though the monthly average electricity bill is lower than in a few states, there is always a way to reduce it. If you are considering investing in solar power, Jackery Solar Generators are reliable and efficient solutions. Jackery Solar Generators charge 99% of your home appliances and can help you reduce your average monthly bill in Michigan.