How Consumers Energy rates rose 41 percent
Consumers Energy's average residential electricity price has risen from 14.64 cents per kWh in 2015 to 20.66 cents in 2025, an increase of about 41 percent, or roughly 3.5 percent per year. The chart shows Consumers Energy's average residential price by year. Hover any point for the exact figure.
Current residential rates
Consumers Energy residential rates are shown below, from the utility's published tariffs and the public Utility Rate Database. Rates vary by plan, season, and usage and change over time.
| Plan | Energy charge | Fixed / basic |
|---|---|---|
| Residential Summer Rate (RSP), the default plan | Summer (June to September): about 24.5 cents/kWh on-peak (weekdays 2 to 7 pm) and 19.7 cents off-peak. Non-summer (October to May): about 17.6 cents/kWh flat. Figures exclude the power supply cost recovery factor, system access charge, and taxes. | Monthly system access charge per the MPSC tariff |
Rate RSP is the default residential plan, reflecting the rate case effective 2025. Listed prices exclude the monthly power supply cost recovery factor, the system access charge, and surcharges and taxes, which are billed separately. Alternative plans include a full time-of-use rate and a nighttime EV rate. Confirm current pricing on Consumers Energy's rate pages before making decisions.
Michigan's inflow and outflow tariff
Michigan replaced retail rate net metering with a Distributed Generation program; Consumers Energy's tariff took effect January 1, 2021. It uses inflow and outflow billing: customers buy grid power at full retail rates and receive a credit for exported energy valued at the power supply component of the rate, below full retail. As of early 2024 those outflow credits are applied against all electric charges on the bill. Customers already on legacy net metering are grandfathered for 10 years from enrollment.
Michigan's distributed generation rule
How Consumers Energy credits your solar
Michigan ended traditional retail net metering, and Consumers Energy's Distributed Generation tariff took effect in 2021. It splits your bill in two: the grid power you use (inflow) is billed at the full retail rate, but the solar you export (outflow) is credited only at the power supply component of the rate, below full retail. Since early 2024 those export credits apply against all charges on the bill. Customers already on legacy net metering keep it for 10 years from enrollment. The practical takeaway is that surplus power is worth less than the power you offset directly, so a system sized to your own usage captures the most value.
What lower export credit means for your system
Consumers Energy rates rose about 41 percent since 2015, with the increase steepening after 2021. Higher rates make the power your solar offsets and you use yourself worth about 21 cents.
The export side is where Michigan differs from a net-metering state. Under the Distributed Generation tariff, exported solar earns only the power supply portion of the rate, so surplus is worth less than the power you offset directly. Consumers Energy's default residential rate is also a summer time-of-use plan with a 2 to 7 pm peak, which rewards shifting usage. Whether solar pencils out depends on your usage and roof, so get a site-specific quote.
What rising Consumers Energy rates could cost you
Consumers Energy rates have risen about 3.5% per year. Enter your bill to see what that pace of increase could compound to over time, and what you have likely already absorbed. This is an estimate, not a guarantee.
Estimate only. Projects your current bill forward at Consumers Energy's historical average rate increase (3.5% per year, from EIA data); it assumes your usage stays the same except for any add-ons you select. Actual rates depend on your usage, rate plan, and the utility's future filings, and are not guaranteed. This is general information, not financial advice.
Consumers Energy service area
Consumers Energy serves Much of Michigan's Lower Peninsula outside DTE's southeast Michigan territory, including Grand Rapids, Lansing, Kalamazoo, Flint, Jackson, Bay City, Saginaw, Battle Creek, and Muskegon, spanning about 59 counties..
To confirm whether a specific address is served by Consumers Energy, check your electricity bill. A ZIP lookup tool is coming to this site.
Full data and sources
Per-utility prices are computed from EIA Form 861 (bundled residential revenue divided by sales), which reconciles to the EIA's published figures. These are public-domain U.S. government data.
| Year | Consumers Energy (c/kWh) |
|---|---|
| 2015 | 14.64 |
| 2016 | 15.4 |
| 2017 | 15.86 |
| 2018 | 15.86 |
| 2019 | 15.85 |
| 2020 | 15.59 |
| 2021 | 18.13 |
| 2022 | 18.11 |
| 2023 | 18.82 |
| 2024 | 19.11 |
| 2025 | 20.66 |
Sources: EIA Form 861, Sales to Ultimate Customers (2015 to 2024) · Consumers Energy, Summer Rate (RSP) · Michigan Public Service Commission, Distributed Generation · DSIRE, Michigan Net Metering and Distributed Generation
FAQ
How much have Consumers Energy electricity rates gone up?
Consumers Energy's average residential price rose from about 14.6 cents per kWh in 2015 to about 21 cents in 2025, an increase of roughly 41 percent, per EIA Form 861 data.
Does Consumers Energy have net metering?
Not the traditional kind. Michigan replaced retail-rate net metering with a Distributed Generation program using inflow and outflow billing. Exported solar is credited at the power supply component of the rate, below full retail. Customers on legacy net metering are grandfathered for 10 years.
What is Consumers Energy's default rate plan?
The default residential plan is a summer time-of-use rate (RSP) with a 2 to 7 pm on-peak window that costs more in summer, plus a flat non-summer rate. Full time-of-use and EV plans are also available. Shifting usage away from the peak lowers bills.
Is solar worth it with Consumers Energy?
Rising rates make self-consumed solar worth about 21 cents per kWh, which helps, but exported power earns only the supply rate. A system sized to your own usage, often with a battery, captures the most value. Get a site-specific quote rather than a general estimate.