What an electric water heater costs to run in Michigan
Michigan homes use 2,595 kWh a year on an electric water heater. Priced on top of the rest of the bill, that costs $365.28 to $613.48 a year across 7 published Michigan plans — a $248.20 gap. Checked September 2, 2026.
Every priced plan, average
| Plan | Per year | vs cheapest | Effective |
|---|---|---|---|
| Residential Service Secondary Non-Transmitting Meter Rate (RSM)✓ cheapestflat rate | $365.28 | — | 15.3¢ |
| Residential Smart Hours Rate (RSH)flat rate | $365.28 | — | 15.3¢ |
| Residential Nighttime Savers Rate (RPM)flat rate | $365.28 | — | 15.3¢ |
| Residential Nighttime Savers Rate (RPM)time-of-use | $595.45 | +$230.17 | 24.2¢ |
| Residential Smart Hours Rate (RSH)time-of-use | $602.25 | +$236.97 | 24.5¢ |
| Residential Summer On-Peak Basic Service (RSP)time-of-use | $602.94 | +$237.66 | 24.5¢ |
| Residential Service Secondary Non-Transmitting Meter Rate (RSM)time-of-use · tiered | $613.48 | +$248.20 | 24.3¢ |
Cost across usage levels
The cheapest plan at each consumption level, showing whether the ranking holds as usage changes.
- Lighter use — cheapest $137.28 (Residential Service Secondary Non-Transmitting Meter Rate (RSM)), dearest $226.63, a $89.35 spread
- Average — cheapest $365.28 (Residential Service Secondary Non-Transmitting Meter Rate (RSM)), dearest $613.48, a $248.20 spread
- Heavier use — cheapest $492.96 (Residential Service Secondary Non-Transmitting Meter Rate (RSM)), dearest $836.56, a $343.60 spread
What an electric water heater costs here
Across 7 plans priced in Michigan, an electric water heater adds $365.28 to $613.48 a year — $30.44 to $51.12 a month. The median plan puts an electric water heater at $595.45 a year.
Cheapest for an electric water heater: Residential Service Secondary Non-Transmitting Meter Rate (RSM), Consumers Energy Co. Dearest: Residential Service Secondary Non-Transmitting Meter Rate (RSM), Consumers Energy Co.
Those 2,595 kWh are billed at 14.1¢–23.6¢, against a 24.2¢ whole-bill average on the median plan, so on these plans the two rates are close.
What Michigan homes use
EIA's 2020 residential survey found 2,595 kWh a year across 101 sampled homes that run one, near the national 2,706 kWh. The middle half spans 975 kWh to 3,501 kWh, so an electric water heater varies by 2,525 kWh between one household and another.
Electricity used to heat water for washing, bathing and appliances. That average covers homes with an electric water heater — 27% of homes here, against 47% nationally.
That makes an electric water heater about 31% of the electricity a Michigan home uses. The remaining 5,776 kWh is what an electric water heater is billed on top of, and on a tiered or time-of-use plan that is what sets the rate it meets.
Light and heavy use of an electric water heater
A household in the lighter quarter runs an electric water heater for 975 kWh a year and pays $137.28 on the cheapest plan. One in the heavier quarter runs it for 3,501 kWh and pays $492.96 — $355.68 more for an electric water heater on the same tariff.
Limits
A 2020 survey average for Michigan, not a measurement of any one home, priced against the 7 Michigan tariffs WattClear has ingested — not every plan sold there.
New to these terms? The methodology page explains tiered bands, time-of-use periods and fixed charges, and sets out exactly what the rate engine assumes.
Estimate — your actual bill may differ.
Tariff structures from NREL/OpenEI Utility Rate Database (CC0 1.0), retrieved September 2, 2026.
Location resolved through the US Census Bureau Geocoder (Public domain) at 42.9634, -85.6681.