EIA data · MI
Michigan: what each way of heating costs
The short answer
In Michigan, electricity averaged 21.28¢/kWh (3.2¢ above the US average). That puts mini-split heat at about $21 per million BTU at rated efficiency, versus $11 for natural gas. A heat pump loses on fuel cost at rated efficiency, and loses at 5°F.
Fuel prices are EIA SEDS 2024 residential averages per million BTU of fuel, divided by 90% furnace/boiler efficiency. Electricity is the EIA trailing-twelve-month residential average. Heat pump efficiency: ENERGY STAR median cold-climate system, HSPF2 10 (COP 2.93) rated, COP 2 at 5°F.
Cities in Michigan
| City | 99% design temp | Heat pump $/yr | Gas $/yr | Oil $/yr | Propane $/yr |
|---|---|---|---|---|---|
| Detroit | 9°F | $1,388 | $648 | $1,448 | $1,463 |
| Grand Rapids | 8°F | $1,556 | $722 | $1,614 | $1,631 |
| Traverse City | 8°F | $1,681 | $776 | $1,733 | $1,751 |
Keep going
- Cost-to-heat calculator: put in a ZIP for your own number instead of a state average.
- All city estimates, sizing by design temperature and incentives.
- States with a similar electricity price: Pennsylvania, Illinois, Wisconsin, Vermont.
Questions people ask
What is the electricity price in Michigan?
EIA reports a residential average of 21.28¢/kWh for Michigan over September 2025 to August 2026; the latest month, August 2026, was 22.99¢/kWh. The US average over the same twelve months was 18.04¢/kWh.
Is a heat pump cheaper than natural gas in Michigan?
Per million BTU of delivered heat, a heat pump at its rated HSPF2 costs about $21 versus $11 for natural gas at 90% efficiency. At 5°F, when efficiency is lowest, the heat pump costs about $31 per million BTU.