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Michigan energy programs save customers $1.4 billion annually

State's efficiency initiatives ranked among nation's best at reducing energy costs.

SK
Steve Kim
Source: This report is based on an official public release from Michigan Public Service Commission. PULSE organizes and summarizes public government communications.

Michigan's energy waste reduction programs saved customers $1.44 billion in 2026, according to an annual report released by the Michigan Public Service Commission.

The programs, which focus on helping homes and businesses use energy more efficiently, saved 1.76 million megawatt-hours of electricity—enough to power Ann Arbor—and 5.88 million thousand cubic feet of natural gas, the agency said.

Michigan utilities spent more than $595 million on the programs in 2025. For every dollar spent, customers saved $2.42 over the 12-year lifecycle of the efficiency measures, the MPSC reported. Residential offerings include lighting upgrades, heating and cooling improvements, weatherization, and appliance recycling; programs for businesses of all sizes are also available.

The state's efficiency programs ranked first nationally in natural gas savings as a percentage of sales and third nationally for electricity savings, according to the American Council for an Energy-Efficient Economy. More than $162 million of the spending went to programs for low-income customers, representing 27 percent of total program funding.

About 78,000 Michiganders work in the energy efficiency sector, including jobs in certified efficiency upgrades, HVAC systems, renewable heating and cooling, and advanced insulation, according to the U.S. Department of Energy.

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