Want to know how to lower your electric bill in Michigan? Start with one question. Is your home using more electricity, or is each kWh (kilowatt-hour, the unit on your bill) costing more? Those are two different problems, and they have different fixes.
The answer might be a new rate plan, insulation, a heat pump, a rebate, solar or a battery. Or it might be using less power during expensive hours. Here's a step-by-step plan for DTE Energy (DTE) and Consumers Energy customers in 2026.
Step 1: Compare kWh Before Comparing Dollars
Pull your latest bill and find the same month from last year. Compare the kWh used, not just the dollar total. Say January went from 850 kWh to 1,250 kWh. That's about a 47% jump in usage. Look at the house first: heating, backup heat, weather or new appliances.
If usage stayed flat but the bill rose, you likely have a price problem. Consumers Energy's Energy Use Dashboard shows daily, monthly and year-over-year use. A spike every day around 5 p.m. points to timing or HVAC. Usage that stays high around the clock is a different problem.
Why Bills Rose in 2026, and What's Still Pending
DTE's last approved increase took effect March 5, 2026, adding about $4.93 a month at 500 kWh. DTE's fuel charge (PSCR, the Power Supply Cost Recovery charge) also rose in March, adding roughly $8.14 a month at 500 kWh. Consumers Energy's increase took effect May 1, 2026, adding about $6.46 a month at 500 kWh.
Both utilities have asked for more. In case U-22046, DTE says the average residential bill would rise $11.06 a month, or 9.96%, if approved in full. It expects a final order in late February 2027. Consumers Energy says a typical bill of about $155 would rise about $13 a month starting May 2027 if approved. The Michigan Public Service Commission (MPSC) will decide. These are requests, not approved rates, and neither changes your bill today.
DTE Customers: Watch 3–7 p.m. on Weekdays
DTE's standard plan is Time of Day 3–7 p.m., where the price depends on the time of day. Peak hours are 3–7 p.m., Monday through Friday. From June through September, the base price is 24.13¢/kWh at peak and 18.44¢ off-peak. From October through May, peak drops to 20.05¢, and off-peak stays at 18.44¢.
These are base energy prices only. They don't include the fuel charge, other surcharges, the monthly service charge or taxes. Try moving EV charging, the dryer, the dishwasher and some water heating to after 7 p.m. or weekends.
You don't always need to use less electricity. Sometimes you just need to use it at a cheaper time.
DTE's Overnight Savers Plan
DTE's Overnight Savers plan has a super off-peak price of 11.74¢/kWh from 1–7 a.m. every day. Other hours cost more. From June through September, the weekday 3–7 p.m. peak is 35.56¢, and other hours are 25.46¢. The rest of the year, they're 19.06¢ and 15.55¢. These are base prices, without the fuel charge, surcharges, service charge or taxes.
That spread rewards flexible homes but can punish heavy summer-afternoon use. Test it with DTE's online rate comparison tool first.
Example: When You Charge an EV
Here's a hypothetical. Say an EV uses 400 kWh a month on Overnight Savers. In summer, base prices only, charging at 11.74¢ instead of the 35.56¢ peak saves 23.82¢ per kWh. Across 400 kWh, that's about $95 a month compared with charging it all at peak. The rest of the year, the gap is 7.32¢, or about $29 a month.
Consumers Energy Customers: Know Your Plan
Consumers Energy's standard Summer Rate charges 24.5¢/kWh from 2–7 p.m. on weekdays, June 1 through September 30. Other summer hours are 19.7¢. From October through May, it's a flat 17.6¢. The Smart Hours plan keeps a 2–7 p.m. weekday peak all year, at 19.0¢ peak and 17.4¢ off-peak in winter. Nighttime Savers offers super off-peak prices from 11 p.m. to 6 a.m.
These are base prices. They leave out the fuel charge, the system access charge, other surcharges and taxes.
Get a Home Energy Assessment
Consumers Energy offers a free Home Energy Analysis, which can include a smart thermostat and pipe insulation. Take the free check before you finance a big project.
DTE has a strong offer for electric-heated homes. The home must be single-family, built before 2016, and heated by an air-source heat pump or electric baseboard. If it qualifies, DTE covers 50% of an assessment, air sealing and insulation, up to $5,000, through a participating contractor. The assessment can include a blower-door test (which measures air leaks), thermal imaging and HVAC testing.
Insulation and Air Sealing Pay Off in Michigan
DTE offers up to $600 for attic insulation, with smaller amounts for other areas. That rebate only applies if DTE is your main heating provider, which mostly means DTE gas customers. DTE is also offering a $250 “Do More” bonus for qualifying insulation installs from Sept. 15 to Dec. 15, 2026.
Efficiency can also shrink future solar. Say a home uses 16,000 kWh a year, and poor insulation and resistance heat waste 4,000 of them. After the fixes, the home needs 12,000 kWh. Solar sized after that can be smaller.
Fix Electric Resistance Heat
Electric resistance heat turns electricity directly into heat. A heat pump moves heat instead, so it can use far less electricity. Homes that lean on baseboard heat, an electric furnace or heat-pump backup heat are strong candidates for an HVAC review. If winter kWh look high, check backup heat, thermostat settings, filters and ducts first.
Check HVAC Rebates Before You Buy
DTE offers up to $1,200 for a cold-climate heat pump, $150–$500 for a standard air-source heat pump and $700–$1,000 for a ductless mini-split. Those heat pump and mini-split rebates only apply when you replace electric heat. Central AC rebates run $100 to $300, and an AC diagnostic tune-up earns $75. DTE's funds are limited and first-come, first-served.
Consumers Energy offers $150 or $300 for central AC, $300 for an air-source heat pump and $350 for a mini-split. A high-efficiency furnace earns $100 or $300, and tune-ups earn $65. Don't leave these rebates on the table.
Smart Thermostats and Peak Time Rewards
DTE offers $50 for a qualifying Wi-Fi thermostat if you apply by Dec. 31, 2026. Consumers Energy pays $50 to join its Smart Thermostat Program, plus $25 after each summer you take part.
Consumers Energy's Peak Time Rewards pays a $0.50 credit for each kWh you shift out of 2–6 p.m. on event days. There are up to 14 events between June 1 and August 31, so keep it in mind for next summer.
Michigan Home Energy Rebates (MiHER)
For income-qualified households, Michigan Home Energy Rebates (MiHER) can be the biggest opportunity. EGLE (the Michigan Department of Environment, Great Lakes, and Energy) runs it in two parts. HOMES pays up to $20,000 for whole-home projects that cut modeled energy use at least 20%. HEAR pays up to $14,000 for electric upgrades for households at or below 150% of area median income (AMI).
Below 80% of AMI, rebates may cover up to 100% of costs. Between 80% and 150%, they may cover up to 50%. You can use both programs only if you qualify for both, and never for the same upgrade.
MiHER Rules to Know Before You Start
MiHER is currently open to low- and moderate-income households only. As of fall 2026, new income-qualified applications are suspended in five EGLE districts: Detroit, Warren, Grand Rapids, Lansing and Kalamazoo. Work must be done by a MiHER Registered Contractor, and the rebate is paid to the contractor. Most important, don't install first. HEAR rebates can't be applied after the fact.
Consider Solar After the House Is Efficient
Michigan's old net metering is closed. New solar customers get inflow/outflow billing. Inflow is power you buy. Outflow is extra solar you send to the grid, and its credit is lower than what you pay for power. On DTE's standard plan, it's 14.407¢/kWh at summer peak and 8.709¢ off-peak, plus the fuel charge. It can't offset delivery charges or surcharges. Consumers Energy credits exports at its power-supply rate, including transmission, and those credits can apply to all electric charges.
So self-consumption (using your solar power at home) matters. Say your panels make 40 kWh on a sunny day, and the house uses 30 kWh right away. Those 30 kWh replace power you'd buy. Only the other 10 kWh earn the lower outflow credit.
Size Solar for the Efficient Home
Michigan lets you size a system up to 110% of your prior 12 months of use. That leaves room for an EV or heat pump. But 110% is a limit, not a target. If efficiency work will cut your usage, size solar around the efficient home. Michigan has no statewide residential solar rebate, and the federal solar tax credit isn't available for systems placed in service after Dec. 31, 2025.
Battery Storage Has to Earn Its Cost
A battery can store extra solar and shift use away from peak hours. A wide spread like Overnight Savers makes that interesting, but it doesn't guarantee a payback. Model the price, efficiency losses, wear and your rate plan. Backup is a separate benefit. Grid-tied solar alone usually shuts off in an outage. For a home with a basement, keeping the sump pump running may be reason enough.
Help If You Need It Now
The Michigan Energy Assistance Program (MEAP) is funded by a low-income energy assistance factor. It's set at $1.50 per meter per month, starting with the September 2026 billing month. A new state assistance funding year opened Oct. 1. State Emergency Relief can provide up to $600 per utility type for households at or below 150% of the poverty level.
The 2026 Home Heating Credit window closed Sept. 30, and the next one opens Jan. 1. Consumers Energy says the average credit is about $200. Eligible DTE electric customers may get an $8.50 monthly income-assistance credit. A head of household 65 or older may get a $4.25 monthly senior credit. To find programs near you, call 2-1-1.
The Best Order to Lower Your Electric Bill in Michigan
- Compare kWh year over year.
- Check your rate plan and when you use power.
- Diagnose heating and cooling, especially resistance heat.
- Fix insulation and air leaks.
- Use utility rebates and check MiHER before work starts.
- Shift flexible loads like EV charging and laundry.
- Size solar around the efficient home.
- Evaluate a battery separately.
Switching suppliers isn't a big lever. Consumers Energy's Retail Open Access choice program is capped at 10% of sales, with a waiting list.
Same $300 Bill, Different Fixes
- Home 1: Resistance heat and poor insulation. Best first move: HVAC and weatherization.
- Home 2: A DTE customer charging an EV from 3–7 p.m. Best first move: change the plan and charging schedule.
- Home 3: An efficient, high-use home with a good roof. Best next move may be solar.
- Home 4: Existing solar and repeated storm outages. Best next move may be a battery.
Same bill.
Different diagnosis.
The Ashborn Approach
Before recommending anything, Ashborn Partners looks at your utility, usage history, rate plan, HVAC, resistance heat and insulation. We check utility rebates and MiHER eligibility, then weigh solar, a battery and future plans like an EV. Then we connect you with participating providers.
In Michigan, your best energy investment may be hiding in your walls, your furnace or your rate plan before it ever reaches the roof.
DTE and Consumers Energy prices shown are base energy prices that do not include fuel charges, surcharges, service charges or taxes. Rebates, MiHER availability and assistance programs can change. Pending rate requests have not been approved. Verify current terms and eligibility before making changes.