Through a combination of new state and federal clean energy laws, the average Michigan household can expect to save about $300 on their annual utility bill over the next six years.
MICHIGAN—A new report from 5 Lakes Energy projects that the average Michigan family will end up paying about $300 less on their annual energy bills by the year 2030 under state and federal legislation that’s actively incentivizing the transition to cleaner, renewable energy.
According to the report, Michigan is set to secure at least $15.6 billion in federal investments through the Biden-Harris administration’s Inflation Reduction Act over the next six years. And when paired with recent state legislation that encourages the transition to clean energy, Michiganders can expect those investments to translate to some tangible financial benefits.
“Thanks to the Biden-Harris administration and the historic clean energy package we passed last year, we’ll be able to continue lowering household utility costs, create thousands of good-paying jobs, and bring more federal tax dollars home to Michigan for clean energy projects,” Gov. Gretchen Whitmer said in a statement announcing the latest projections.
Specifically, the new report estimates that by 2030, Michigan’s clean energy laws and federal investments will have driven down household energy bills by $297 a year when compared to the baseline expected energy cost, had federal and state clean energy policies not been enacted.
And by 2040, the average Michigan family will save more than $700 a year, the report states.
“Michigan is building the future of cars, chips, and clean energy, driven by our world-class manufacturing capabilities, talented workers, and unmatched grit,” Whitmer said. “I am so proud to have signed laws that helped us create high-skilled, good-paying jobs, bring supply chains home, lower our dependence on foreign fuels, and build a bright future for our state.”
Overall, the analysis also estimates that state and federal clean energy policies will help lure in at least $15.6 billion in Inflation Reduction Act investments into Michigan by 2030—and $30.7 billion by 2040, assuming that legislation isn’t derailed by Donald Trump, if he wins the November presidential election.
The shift to renewable energy is also set to curb Michigan’s greenhouse gas emissions—which are the largest contributor to climate change—by at least 65% by 2030 and 88% by 2040, the report estimates. In turn, Michiganders can also expect to avoid about $28 billion in estimated healthcare costs, including both hospitalizations and lost work days, through the year 2040.
“The future of our energy sector and a significant part of our economy lies in clean energy,” said state Sen. Sue Shink (D-Northfield Twp). “This proves that prioritizing clean energy isn’t just good for the environment—it’s also a powerful boost for our economy and American workers.”
The report breaks down the anticipated investments, jobs, and savings by region, with metro Detroit, as the state’s most populated region, seeing the majority of the expected investments.
Click here to read the new report and to see the full regional investment breakdown in Michigan.
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