Residents in Rockford, MI who request quotes on the EnergySage Marketplace spend an average of $189 monthly on electricity. That adds up to $2,268 per year. A different way to look at it is that a typical Rockford, MI resident uses 1,006 kWh of electricity per month and 12,072 kWh over the year.
(For what it’s worth: Rockford, MI residents shopping for solar on EnergySage may use more electricity than a typical household.)
The easiest way to compare electricity costs across regions is to look at the electricity rate. In the U.S., residential rates generally range from 11 ¢/kWh all the way up to 34 ¢/kWh.
As of February 2026, the cost of electricity in Rockford, MI is 19 ¢/kilowatt-hour (kWh)—roughly 5% lower than the national average cost. That number is based on real-world electric bills shared with EnergySage over the past 12 months. You can compare that number to the most recent average state electric price reported by the U.S. Energy Information Administration (EIA).
There are three primary electricity companies in Michigan that provide transmission and distribution: DTE Electric, Consumers Energy, and Upper Peninsula Power Company (UPPCO). These companies are Investor Owned Utilities (IOUs).
Some towns and cities in Michigan get electricity through a Municipal Light Department instead of an IOU. Municipalities, such as Lansing Board of Water and Light, are publicly owned organizations and don’t have the same regulatory requirements as IOUs. Many offer lower rates and reinvest in the community, but may not offer certain benefits like net metering.
In Michigan's deregulated market, you can’t choose your utility company, but you do have the option to choose the company that supplies your electricity. Through Michigan’s Electric Customer Choice program, you can select an alternative energy supplier from your utility’s list of licensed energy companies. While choosing your energy plan can save you money, the Electric Customer Choice programs are capped at allowing only 10% of customers to participate. There is currently a waitlist to join.
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When you pay your electric bill, you’re not only covering the costs to produce that electricity, but also the costs of running and maintaining the electrical grid, as well as public benefit funds that promote things like renewable energy and energy efficiency.
Electric bill costs are rolled into fixed (monthly customer charges) and variable charges (¢/kWh that you use).
Fixed charges, like the flat fee for having a meter, generally remain the same monthly unless your utility makes a policy update.
Your variable charges will change every month and depend on your electricity rate and how much electricity you use.
Your electric bill's variable charges will include a supply (or generation) charge and a transmission and distribution (or delivery) charge. The supply charge covers the cost of electricity generation, while the transmission and distribution charges cover the cost of delivering it to your home.
Many utility companies in Michigan offer energy plans with time-of-use (TOU) rates and demand charges. Depending on your plan, the rate changes based on the time of day, day of the week, or season. But it depends on your utility company and energy plan choice in Michigan.
How clean is the electricity in Michigan?
Michigan’s electricity is moderately clean but still heavily reliant on fossil fuels, according to August 2025 data from the EIA. About 47% of its electricity comes from natural gas and about 22% from coal, while 21% comes from nuclear energy. Only 9% of Michigan’s electricity comes from renewable sources, so if you go solar in Michigan, it will almost always shrink your carbon footprint.
As long as you have a suitable roof, one of the surest ways to save on energy is to go solar—ideally with a vetted contractor offering a competitive price.
Solar panels will reduce or even eliminate your electric bills in the short term and protect you against rising electricity costs in the long run, too. The amount you save depends on how much you spend on electricity now and how much of your electric bill you can offset with solar energy.
Solar panels are a big investment, but Rockford, MI homeowners who install them—and pay upfront—break even after an average of just 10.34 years. Then, the solar panels will continue to produce free electricity for years to come.
Does Michigan offer net metering?
Solar panels are powerful and, when the sun is shining, typically produce more electricity than your home needs at any given moment.
That solar energy doesn't go to waste. Utility companies in Michigan—like Xcel Michigan, DTE, Consumers Energy, and Great Lakes Energy Coop—offer net billing under the Distributed Generation Program. Unlike net metering, which credits you fully for excess electricity, net billing gives you a partial credit for each kWh you send back to the grid—roughly half the rate you pay them for electricity, though rates vary by utility company.
You can use these credits to pay for your electric bill whenever you need energy from the grid, like at night. If you want the best bang for your buck, consider storing and using your self-generated energy with a solar battery.
How much can you save with solar?
While solar incentives in the Great Lake State are somewhat limited, the state's average electricity rates are pricey. That means you can often save on electric bills when you go solar in Rockford, MI.
Just take a look at how much you'll spend on electricity over time based on your current bill. It’s easy to see how going solar can pay off quickly.
Electricity cost over time in Michigan
Current monthly electric bill | 10-year electricity cost | 20-year electricity cost | 30-year electricity cost |
|---|---|---|---|
$50 | $6,900 | $16,000 | $29,000 |
$100 | $14,000 | $32,000 | $57,000 |
$150 | $21,000 | $48,000 | $86,000 |
$200 | $28,000 | $64,000 | $110,000 |
$250 | $34,000 | $81,000 | $140,000 |
Assuming a 3% annual increase based on inflation and average annual electric rate increases in Michigan.
Let's assume you pay $189 for electricity monthly (the Rockford, MI average) and that electricity prices increase by 3% annually. Let's also assume you buy your solar panel system upfront and that it costs you $31,000 before any available incentives.
In the first year with solar, you'll avoid spending $2,300 on electric bills. Over five years, you'll avoid $12,100; by 10 years, you'll have avoided $26,100. Solar panels are usually covered under warranty for 25 years—by then, you'll have avoided spending $82,900 on electric bills in Rockford, MI.
The average payback period in Rockford, MI is 10.34 years, so by this point, you've already broken even on your investment. When you subtract your upfront installation cost, you'll pocket $52,200 over 25 years with solar.
Your solar savings depend on you
How much your utility company charges for electricity is a big indicator of how much you'll save with solar. But your exact solar savings depend on your unique situation—including your energy usage, roof layout, system size, and how you pay for your system.
Here are some reasons your savings could be below average:
You don’t use much electricity, or your roof is small or has a less-than-ideal layout. You might have a relatively long payback period, so you'll save a little less over time.
You don't install enough solar panels to 100% offset your energy use. You’ll pay less up front but save less in the long run.
You finance your solar panel system with a loan or sign a lease or power purchase agreement (PPA) instead of paying up front. These types of arrangements can make a lot of sense for keeping your capital flexible and will allow you to start saving sooner. But they will cut into your long-term savings.
Choosing a high-quality solar installer is the key to getting a top-notch solar panel system that will help you save on electric bills.
We pre-screen all solar companies on EnergySage to ensure they get the job done right. Here are the highest-rated EnergySage installers in Rockford, MI:
Elite InstallerScreened & Verified4.9 /5.064 Reviews
Advanced InstallerScreened & Verified5.0 /5.01 Review
Advanced InstallerScreened & Verified4.6 /5.0521 Reviews
Approved InstallerScreened & Verified5.0 /5.035 Reviews
Approved InstallerScreened & Verified4.7 /5.0624 Reviews
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