Michigan (MI) electricity and natural gas rates
Electricity
23.05¢
per kWh
Natural gas
$1.92
per therm
Gas and electricity in the same unit
A therm is 29.3 kilowatt hours of energy, so Michigan's gas works out at 6.54¢ per kWh against 23.05¢ for electricity.
That compares the energy you buy, not the heat you get. A furnace throws away a fifth of every therm up the flue, while a heat pump delivers two to three times the heat in a kilowatt hour — so the cheaper unit here is not automatically the cheaper way to heat a house.
Residential sector, US Energy Information Administration, 2026-07. Updated monthly.
How Michigan compares
At 23.05¢ per kWh, Michigan is above the national average of 19.26¢, making it the 39th cheapest of the 51 states we track.
What a typical Michigan household uses
Electricity a month
630 kWh
Bill a month
$133
Households in Michigan use 27% less electricity than the national average and pay 12% less than average. That is a price problem rather than a consumption one — at 23.05¢ a kilowatt hour, even a modest amount of electricity adds up. The climate pulls the other way here: 6,600 heating degree days against 700 cooling ones, so how a home is heated matters more than how it is cooled.
More on this: the average electric bill in Michigan, including how far it swings between seasons.
Averaged over twelve months across 4,562,876 residential accounts in Michigan. Source: EIA.
What this means for heating
Michigan sees around 150 freezing nights a year. Whether a heat pump beats a furnace here depends on the gap between those two prices above — not on the equipment.
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