Michigan Heat Pump Rebates
Heating and cooling equipment can get up to $8,000 under Michigan heat pump rebates, which run through the state program Home Electrification and Appliance Rebates. Electric utilities pay $150 to $2,250 for qualifying replacements, and whole-home upgrades go as high as $20,000.
Find the Michigan rebates for your ZIP code
If you have no JavaScript, look up your state in the program table.
Who sends your electric bill?
What are you putting in?
- Largest open standard rebate
- $2,000 Great Lakes Energy Energy Wise Rebates, available to Great Lakes Energy Coop customers
- Geothermal (ground-source) system
- $2,250 Great Lakes Energy Energy Wise Rebates
- If your household income qualifies
- $8,000 Michigan Home Energy Rebates (MiHER)
- HEAR appliance rebates
- Open in part Pays as much as $8,000 toward a heat pump when income qualifies. Run by EGLE. Official page
- HOMES whole-home rebates
- Partly open Paid on the energy saved by a whole-home upgrade. Official page
- The federal 25C tax credit
- Ended No credit for heat pumps installed after 31 December 2025
Rebates for heat pumps in Michigan
Check your household income and your electric utility to learn which state and power company rebates cover your home.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Geothermal | Status | Apply |
|---|---|---|---|---|---|---|---|
| Michigan Home Energy Rebates (MiHER) | Everyone in the state | Up to $8,000 (income-qualified) | None | Up to $1,750 (income-qualified) | None | Open | Official page |
| Consumers Energy Heating and Cooling Rebates | Served by Consumers Energy Co | $300 | $350 | Paid to your contractor, set per job | $300 (EER 17-18.99: $200) | Open | Official page |
| Air Conditioner and Heat Pump Replacement Rebates from DTE Energy | Served by DTE Electric Company | $1200 (lower tiers $1000 / $900) | $1000 (17-31.5 SEER2 and HSPF2 8: $700) | Instant discount (amount not stated) | $800 (17-19.99 EER2: $600) | Open | Official page |
| Great Lakes Energy Energy Wise Rebates | Served by Great Lakes Energy Coop | $450 | $500 per outdoor unit, limit 4 | $100 | $2,250 | Open | Official page |
Claiming Michigan Heat Pump Rebates Step by Step
Whether you keep the money or lose it depends on the rules for timing and contractors. You must review your filing rules before any installation contract is signed, as state agencies and utilities require.
- Apply first for state income-qualified funding via the state rebate portal; equipment purchases come later, and once approved you bring in a registered contractor.
- The rebate is taken straight off your upfront bill by your approved contractor, who also assesses your home and installs the heat pump.
- Hire a participating contractor for Consumers Energy Heating and Cooling Rebates; they must file within 30 days of your 2026 installation.
- A participating contractor files your form online for DTE Energy replacement rebates once installation is finished, and your check arrives six to eight weeks later.
- Under Great Lakes Energy Energy Wise Rebates, use a licensed mechanical contractor and file your application within 60 days of installation.
Who Can Get a Michigan Home Energy Rebate?
The state efficiency program gives its largest upfront discounts to low- and moderate-income households. Eligibility is based on Area Median Income, the middle income for families your size in your county.
- Households earning under 80% of the local middle income get back as much as 100% of qualified project costs.
- For families at 80% to 150% of that benchmark, up to 50% of qualified costs can be covered.
Under Home Electrification and Appliance Rebates, the appliance track, a heat pump earns you as much as $8,000 and a water heater as much as $1,750. Per the official program handout, each household cannot receive more than $14,000 in total appliance rebates. Payments under the whole-home track, Home Efficiency Rebates, depend on modeled energy savings, with up to $20,000 per household. One whole-home rebate per address is allowed under the state program rules.
Status of Michigan Home Energy Rebates and Free Weatherization
The Michigan Department of Environment, Great Lakes, and Energy started its program in fall 2024 with pilot homes in the Upper Peninsula. Federal funding of $105.3 million covers appliance upgrades, and $105.7 million covers whole-home projects, aiding about 15,000 Michigan homes.
The money was split by the state across 10 regional districts, and five districts are still taking new applications right now. The portal help center, however, notes a temporary hold on new income-qualified applications across five districts. Applications paused: Detroit in May 2026, Warren in August 2026, and Grand Rapids, Kalamazoo, and Lansing in September 2026.
Free upgrades through the Weatherization Assistance Program are also open to households earning 200% of federal poverty guidelines or less. This service is run by local Community Action Agencies, and any household getting cash assistance qualifies automatically.
Michigan Heating Fuel Rules and Tax Credits
Federal energy data puts Michigan first for residential propane, while almost eight in 10 of its households heat with natural gas. Fuel furnaces are common, yet the biggest electric utilities still limit rebates based on the heating equipment you already have.
- In a single-family home, replacing the existing electric heat is required for DTE Energy rebates of up to $1,200 on a cold-climate system.
- Consumers Energy rebates between $200 and $350 require replacing primary electric heat or an old heat pump, and gas furnaces are excluded.
- Ground-source units, which draw heat from pipes buried underground, can earn Great Lakes Energy payments of up to $2,250.
There is also a lower Efficient Electric Heating rate from Great Lakes Energy when your primary heat comes from a heat pump. The Internal Revenue Service also confirms that the federal 25C tax credit no longer applies to installs after 31 December 2025 because of Public Law 119-21.
Common Questions About Michigan Heat Pump Rebates
What caused the Detroit district to pause new state rebate applications?
The state split its regional rebate budget over 10 districts, giving every area fair access to money. The largest single share, $26,138,495.59, went to Detroit, but heavy demand made program administrator CLEAResult pause new entries. Applications filed before the pause are still working through home assessments and installations.
Can I claim a DTE Energy rebate for a tune-up or a home that is newly built?
DTE Energy replacement rebates are not available for new construction or first-time installations, and a home may have no more than two units. If a heat pump you already own gets a professional diagnostic tune-up, though, DTE Energy pays a $75 rebate.
Which rebates can I get for a heat pump water heater in Michigan?
DTE Energy and Consumers Energy electric customers can get an instant discount on a high-efficiency heat pump water heater. A participating contractor is required by Consumers Energy, and only tanks of 55 gallons or smaller qualify. An ENERGY STAR model installed by a licensed plumbing or mechanical contractor earns Great Lakes Energy members $100.
At Great Lakes Energy, how many ductless mini-split units are eligible for rebates?
For each outdoor ductless mini-split unit, Great Lakes Energy pays $500, with up to four units allowed per member account. An air-to-water heat pump also qualifies for $800 from the cooperative; it heats water for radiators or floor tubing. $450 is available for central air-source heat pumps through the Energy Wise program, if a licensed mechanical contractor installs them.
Get Michigan installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.