ARLINGTON, Va. (Michigan News Source) – The state of Michigan ranked 38th nationally in terms of affordable electricity with prices being driven up by state laws that mandate the use of more expensive renewable energy, according to a report by the American Legislative Exchange Council (ALEC).
Michigan has a law that states the retail electric providers have a “renewable energy standard” of 50% by 2030 and 60% by 2035.
“Michigan’s rising electricity prices stem directly from its energy policies,” said Jake Morabito, the Energy, Environment, and Agriculture Task Force Director for the American Legislative Exchange Council. “The state’s Renewable Portfolio Standard (RPS) mandates an increasing reliance on renewable sources, driving expensive investments in wind and solar. Meanwhile, its net metering policy further increases costs. Compounding the issue are the federally required high-priced upgrades to coal and nuclear plants. Coupled with the financial strain of reaching renewable mandates while trying to maintain grid reliability, these policies are placing a heavy burden on customers. As Michigan pushes forward with its renewable energy transition, affordable electricity becomes an increasingly elusive prospect for residents.”
Michigan had the 13th highest average retail price for electricity for the residential sector in the U.S. as of December 2024, according to the federal Energy Information Administration.
Michigan’s average retail price of electricity was 18.41 cents/kWh. Hawaii had the highest at 42.34 cents/kWh. Michigan had the highest of any state in the Midwest.
“States play a pivotal role in unlocking American energy dominance, but misguided policies can drive up prices and lead to unreliability at home,” said State Rep. Phil Green, R-Millington, in a statement. “ALEC’s latest Energy Affordability Report demonstrates how burdensome mandates, such as renewable portfolio standards and government-imposed net metering, directly lead to higher bills for businesses and families. Instead of picking winners and losers when it comes to energy production, states like Michigan should embrace free-market solutions that promote affordability and innovation.”