Michigan Heat Pump Rebates & Incentives (2026)
Federal tax credits are gone, but Michigan's $210 million MiHER program offers up to $8,000 per heat pump for income-qualified households — with applications currently limited to low- to moderate-income households, and new income-qualified applications paused in the EGLE Detroit District. Utility rebates add $150–$1,200 from DTE and Consumers Energy. This guide covers all major Michigan heat pump incentives available in 2026, including MiHER HEAR and HOMES, utility rebates from DTE, Consumers Energy, TCLP, and BWL, plus Ann Arbor's A2ZERO program. Here's what's actually available.
Updated July 13, 2026 — verified against official program sources
Rates and program availability may change after this date.
Michigan
Limited / Region-Dependent
Michigan's $210 million MiHER program offers up to $8,000 for heat pumps at point of sale — but as of July 2026, applications are open to low- to moderate-income households (≤150% AMI) only, and new income-qualified applications are paused in the EGLE Detroit District. DTE Energy rebates run $150–$1,200 (electric-heat replacements only). Consumers Energy offers $300–$350 (existing-heat-pump replacements for ducted/GSHP). TCLP's up-to-$3,000 rebate and Ann Arbor A2ZERO's $4,000–$5,500 belong to 2025–26 program years that ended June 30, 2026; new schedules were pending. Federal tax credits (25C/25D) ended December 31, 2025.
Sources:
The Short Version
✓ MiHER HEAR Rebates
Up to $8,000 per heat pump at point of sale for households ≤150% AMI. Enhanced rebates (100% of costs) for ≤80% AMI. Covers fuel-switching from gas/propane. $14,000 total household cap. As of July 2026, applications are open to low- to moderate-income households only, and new income-qualified applications are paused in the EGLE Detroit District.
✓ Utility Rebates
DTE Energy up to $1,200. Consumers Energy $300–$350. BWL up to $600. All stack with MiHER. TCLP's up-to-$3,000 rebate and Ann Arbor A2ZERO's $4,000–$5,500 both belong to 2025–26 program years that ended June 30, 2026 — new schedules were pending as of July 2026.
✓ Total Potential Savings
Up to ~$9,200 today for income-qualified households (HEAR $8,000 + DTE $1,200 where eligible). Households above 150% AMI are currently limited to utility rebates ($150–$1,200, and only when replacing existing electric heat). If A2ZERO renews at prior levels, low-income Ann Arbor stacks can again reach ~$14,700.
✗ Federal Tax Credits Expired
Both Section 25C ($2,000/year for heat pumps) and Section 25D (30% for geothermal) expired December 31, 2025. Not available for 2026 installations.
⚠ DTE and Consumers Energy Restrict Gas-to-Electric Conversions
Michigan's two largest utilities exclude gas-to-electric conversions. DTE limits heat pump rebates to electric customers replacing existing electric heating. Consumers Energy is stricter: ducted air-source and ground-source rebates require replacing an existing heat pump, and only the mini-split rebate allows replacing any primary electric heat system. Since most Michigan homes heat with gas, this pushes fuel-switching households toward MiHER HEAR, which specifically covers gas-to-electric conversions.
Federal Tax Credits: Both Expired
The One Big Beautiful Bill Act (signed July 4, 2025) terminated both residential energy tax credits effective December 31, 2025. Section 25C had provided up to $2,000/year for heat pumps. Section 25D had covered 30% of geothermal heat pump costs with no cap. Equipment must have been installed by December 31, 2025 to qualify — the IRS defines the expenditure date as when installation is completed, not when equipment is purchased or paid for. For 25D, unused credit from qualifying 2025 expenditures can be carried forward to future tax years. Section 25C offers no carryforward. As of July 2026, no replacement federal heat pump credit is active. Full details on the federal credit expiration →
MiHER: Michigan's $210 Million State Rebate Program
Michigan launched both components of the Michigan Home Energy Rebates (MiHER) program statewide on April 14, 2025, administered by the Department of Environment, Great Lakes, and Energy (EGLE). Total IRA funding: $210 million. CLEAResult handles implementation and application processing (call center: 855-510-7080).
⚠ Current Application Status (July 2026)
EGLE states that applications are currently open to low- to moderate-income households only — households above 150% AMI cannot currently apply. In addition, new income-qualified applications for properties in the EGLE Detroit District are temporarily suspended while the program reviews submitted applications against its regional funding allocations; Detroit District participation is approaching the program's single-family funding cap. Applications already submitted continue to be processed, and applicants whose applications expire during the suspension will be permitted to reapply once intake reopens.
HEAR (Home Electrification and Appliance Rebates)
Point-of-sale rebates applied as a discount at installation through approved MiHER contractors. Specifically supports fuel-switching (gas/propane to electric heat pump). Rebate income is not taxable per IRS Announcement 2024-19.
| Measure | Maximum Rebate |
|---|---|
| Heat pump (space heating/cooling) | Up to $8,000 |
| Heat pump water heater | Up to $1,750 |
| Electric panel upgrade | Up to $4,000 |
| Insulation, air sealing, ventilation | Up to $1,600 |
| Electric wiring | Up to $2,500 |
| Electric stove or dryer | Up to $840 |
| Total household cap | $14,000 |
Income determines the rebate percentage:
| Income Tier | Rebate Coverage | HEAR Eligible? |
|---|---|---|
| ≤80% AMI | Up to 100% of approved costs | Yes (enhanced) |
| 81–150% AMI | Up to 50% of approved costs | Yes (standard) |
| >150% AMI | Not eligible for HEAR | No — and cannot currently apply to MiHER at all (as of July 2026) |
All work must be pre-approved and performed by an approved MiHER contractor. Retroactive claims are not accepted.
⚠ Common Mistake: Pre-Approval Is Required
MiHER does not accept retroactive claims. Your project must be pre-approved before installation starts. If you install a heat pump before getting MiHER approval, you cannot receive the rebate after the fact — even if you would have qualified.
HOMES (Home Efficiency Rebates)
Whole-home performance approach. Rebates scale with modeled energy savings. HOMES was designed to serve all income levels, but as of July 2026 EGLE is accepting MiHER applications from low- to moderate-income households only — so households above 150% AMI cannot currently access HOMES either.
| Energy Savings | Standard Rebate | ≤80% AMI Rebate |
|---|---|---|
| 20–34% savings | $2,000 | $4,000 |
| 35%+ savings | $4,000 | $8,000 |
| Low-income cap | — | Up to 80% of costs, $20,000 max |
HOMES and HEAR cannot be combined for the same individual measure but can fund different upgrades within the same project.
Utility Rebates
Michigan's utility rebates vary enormously, and neither DTE nor Consumers Energy covers gas-to-electric conversions. DTE limits heat pump rebates to electric customers replacing existing electric heating; Consumers Energy requires replacement of an existing heat pump for its ducted air-source and ground-source rebates (only its mini-split rebate allows replacing any primary electric heat system). Since most Michigan homes heat with natural gas, this pushes fuel-switching households toward MiHER HEAR.
Traverse City Has Offered Michigan's Best Utility Rebates
TCLP's 2025–26 program year paid up to $3,000 per cold-climate heat pump system — far more than DTE's $1,200 or Consumers Energy's $350. That program year ended June 30, 2026, and TCLP had not posted a new-year schedule as of July 2026; confirm current amounts at 231-922-4940 before purchase. TCLP also offers on-bill financing ($5,000–$30,000).
DTE Energy
Detroit metro, ~2.3 million electric customers
| Equipment | Rebate |
|---|---|
| Cold-climate ASHP (16+ SEER2, 9.1+ HSPF2, EER2 ≥10) | $1,200 |
| Cold-climate ASHP (lower efficiency tiers) | $900–$1,000 |
| Standard ASHP (non-cold-climate) | $150–$500 |
| Ductless mini-split | $700–$1,000 |
| Ground-source heat pump | $600–$800 |
All equipment must be AHRI-certified matched systems. Rebates limited to customers replacing existing electric heating. Funds are first-come, first-served and limited — DTE's rebate page shows a live funds-remaining gauge, so check availability before committing.
Consumers Energy
Western/central Michigan, ~1.9 million electric customers
| Equipment | Rebate |
|---|---|
| ASHP (SEER2 15.2+) | $300 |
| Ductless mini-split (SEER2 17+, HSPF2 8+) | $350 |
| Ground-source heat pump | $200–$300 |
2026 program covers installs January 1 – December 31, 2026, first-come, first-served while funds last. Does not differentiate between cold-climate and standard ASHPs. Eligibility is narrow: the ducted ASHP and ground-source rebates require replacement of an existing heat pump; the mini-split rebate allows replacement of any primary electric heat system. Equipment must be installed by a participating Trade Ally, who submits the application.
Traverse City Light & Power (TCLP)
Traverse City area — Michigan's most generous utility rebates in 2025–26; new program year pending
| Equipment | Rebate |
|---|---|
| Cold-climate ducted ASHP (SEER2 ≥15.2, EER2 ≥9, HSPF2 ≥8.1, COP ≥1.75 at 5°F) | $3,000/system |
| Standard ducted ASHP (SEER2 ≥15.2, no COP requirement) | $1,500/system |
| Cold-climate ductless mini-split (SEER2 ≥16, COP ≥1.75 at 5°F) | $3,000/system |
| HPWH (≤55 gal, UEF ≥2.2) | $1,000 |
| Electric panel upgrade | $1,000 |
Amounts above are from TCLP's 2025–26 program year (July 1, 2025 – June 30, 2026), which has ended; TCLP had not posted a 2026–27 schedule as of July 2026. The panel upgrade rebate required installation of an EV charger or a 240V appliance. On-bill financing available ($5,000–$30,000). Confirm current offers at 231-922-4940.
Lansing Board of Water & Light (BWL)
Lansing area — Hometown Energy Savers® program
| Equipment | Rebate |
|---|---|
| Central ASHP (tiered by SEER2: 15.2–21+) | $200–$600 |
| Mini/multi-split | $300 ($500 if replacing electric resistance) |
| HPWH (ENERGY STAR, EF ≥2.0) | $500 |
Program runs January–December 2026. Administered by Michigan Energy Options.
Other Michigan Utilities
UPPCO (Upper Peninsula)
Offers heat pump rebates and an EMPOWER program with free upgrades for income-qualified customers. UPPCO territory was a MiHER pilot region. Contact (906) 449-2222 or energyefficiency@uppco.com for current rebate amounts.
Great Lakes Energy (cooperative)
Air-source heat pump rebates of $250–$750. Geothermal rebates of $500–$750. Members using heat pumps as primary heat may qualify for the Efficient Electric Heating (EEH) rate — a 3¢/kWh credit on heat pump energy use during the November–May heating season. Contact (888) 485-2537 for current program details.
Cherryland Electric (cooperative)
Most recent published schedule (2025): $500 for centralized ASHPs, $500 for mini-splits, $500 for HPWHs, $1,000 for geothermal. $10,000 annual cap per membership. Supports fuel-switching from gas/propane. Contact (231) 486-9261 to confirm 2026 availability.
Ann Arbor: A2ZERO Home Energy Rebate Program
Ann Arbor operates Michigan's only major city-level heat pump incentive, funded by a voter-approved Community Climate Action Millage ($1.9M annually). Dual-fuel systems (heat pump + gas furnace backup) are not eligible — the program pushes toward full electrification. Equipment must be NEEP-listed with minimum SEER2 15.2 and HSPF2 8.0. Rebates are capped at 90% of project cost; up to two mini-split systems per address can each earn the heat pump rebate. The amounts below are from the 2025–26 program year, which closed June 30, 2026 — see the note under the table.
| Measure | Market Rate | Income-Qualified (≤120% AMI) |
|---|---|---|
| Cold-climate HP (central or mini-split) | $4,000 | $5,500 |
| Ductwork modifications | $1,500 | $2,500 |
| Heat pump water heater | $1,000 | $2,000 |
| Electric panel upgrade | $1,000 | $2,000 |
The 2025–26 program year closed June 30, 2026 — rebate amounts were valid through that date, and applications were due by it. The city has said it plans to offer these rebates in future years under the Community Climate Action Millage, but a 2026–27 application had not been posted as of July 2026; check osi.a2gov.org/rebates for the new program year. Ann Arbor explicitly encourages stacking A2ZERO with MiHER and utility rebates.
How Programs Stack
Utility rebates, MiHER (HOMES/HEAR), and A2ZERO draw from different funding sources and can stack. The key constraint: HOMES and HEAR cannot cover the same measure. Two program-status caveats shape every scenario as of July 2026: MiHER applications are open to low- to moderate-income households only (with new income-qualified applications paused in the EGLE Detroit District), and A2ZERO is between program years. Scenario: $17,500 whole-home ducted cold-climate ASHP installation.
Above 150% AMI — Utility Only (for now)
- HEAR: not eligible
- HOMES: not currently available — MiHER applications are limited to ≤150% AMI households as of July 2026
- Utility rebate: $150–$1,200 (DTE, only when replacing existing electric heating; Consumers only when replacing an existing heat pump or, for mini-splits, electric heat)
- Federal 25C/25D: $0 (expired)
Realistic maximum: $0–$1,200 (often $0 for gas-heated homes)
Above 150% AMI in Ann Arbor
- HOMES: not currently available (see above)
- A2ZERO (market rate, $4,000 in 2025–26): between program years — renewal planned but not yet posted
- DTE rebate: up to $1,200 (electric-heat replacements only)
Realistic maximum today: $0–$1,200; ~$5,200 if A2ZERO renews at prior levels
80–150% AMI — HEAR + Utility (the live stack)
- HEAR heat pump rebate: up to $8,000 (new applications paused in the EGLE Detroit District)
- DTE or Consumers rebate: $150–$1,200 where the replacement rules above are met
Realistic maximum: ~$8,000–$9,200
Below 80% AMI in Ann Arbor — Best Case (when A2ZERO reopens)
- HEAR heat pump rebate: up to $8,000 (up to 100% of approved costs at this income tier)
- A2ZERO (income-qualified, $5,500 in 2025–26): between program years
- DTE rebate: up to $1,200 (electric-heat replacements only)
Realistic maximum today: ~$9,200; ~$14,700 if A2ZERO renews at prior levels
What You'll Actually Pay
On a $17,500 project as of July 2026: roughly $8,300 (income-qualified with HEAR $8,000 + DTE $1,200) up to the full $17,500 (above 150% AMI in a gas-heated home, where no rebate currently applies). Qualifying households (≤150% AMI, outside the paused Detroit District) will see up to $8,000 in MiHER incentives on the heat pump itself — and households ≤80% AMI can have up to 100% of approved costs covered within HEAR's caps. If A2ZERO reopens at prior levels, low-income Ann Arbor out-of-pocket can fall to ~$2,800. The loss of the $2,000 Section 25C credit is most acutely felt by households above 150% AMI, who currently have no MiHER path at all. No state tax credit exists for air-source heat pumps in Michigan.
The 25C loss adds ~$2,000 to out-of-pocket for above-150% AMI households. HOMES was designed to partially offset this for whole-home projects achieving 35%+ energy savings, but is not currently open to that income group while MiHER intake is limited to low- to moderate-income households.
Weatherization & Financing
Michigan Saves
Michigan Saves offers unsecured financing through participating credit unions, with advertised rates as low as 6.24% APR and terms up to 180 months. Maximum loan amounts vary by lender and can reach $100,000 in some cases. Can be combined with all rebate programs.
Weatherization Assistance Program (WAP)
Michigan's WAP provides free energy upgrades — potentially including heat pump installation — for households at or below 200% of the Federal Poverty Level. Administered by the Michigan Department of Health and Human Services through 26 Community Action Agencies across the state.
✓ Best Candidates for Heat Pumps in Michigan
Households ≤150% AMI who qualify for MiHER HEAR (up to $8,000), outside the paused EGLE Detroit District. Homeowners switching from propane or fuel oil in rural and northern Michigan (largest operating cost savings). Ann Arbor residents, once A2ZERO's next program year opens, who can stack A2ZERO + MiHER + DTE. TCLP customers in Traverse City if TCLP renews its up-to-$3,000 rebate. Low-income households who may qualify for both WAP and HEAR.
Cold Climate: Why Equipment Choice Matters
Michigan spans IECC Climate Zones 5A through 7. Cold-climate ASHPs meeting ENERGY STAR criteria (COP ≥1.75 at 5°F) are essential statewide, and equipment rated to −15°F or lower is strongly recommended for northern Michigan and the Upper Peninsula.
| City | Design Temp | Primary Heating Fuel |
|---|---|---|
| Detroit | 0°F | Natural gas |
| Grand Rapids | ~0°F | Natural gas |
| Lansing | −3.5°F | Natural gas |
| Marquette | −8 to −10°F | Propane / fuel oil |
Natural gas dominates southern Michigan heating. Propane and fuel oil concentrate in rural areas, northern Michigan, and the UP. Heat pumps are most economically attractive where they displace propane or fuel oil, making rural and UP households the strongest economic candidates for conversion — and also the areas requiring the most capable cold-climate equipment.
Manual J load calculations are important in Michigan's climate. Proper ductwork assessment matters too — many Michigan homes have aging duct systems designed for furnaces that may need modification for optimal heat pump performance. For information on pairing heat pumps with home battery storage, see our guide to home batteries in 2026.
How to Apply
Check your income eligibility
HEAR requires ≤150% AMI. Enhanced rebates at ≤80% AMI. Use your household size and county to determine your AMI level. As of July 2026, MiHER applications are open to low- to moderate-income households only, and new income-qualified applications are paused for properties in the EGLE Detroit District.
Find an approved MiHER contractor
HEAR rebates must go through an approved contractor who applies the discount at point of sale. Call 855-510-7080 for the contractor list.
Get pre-approval before work begins
MiHER does not accept retroactive claims. Your project must be pre-approved before installation starts.
Apply for your utility rebate separately
Utility rebates use their own application processes. Your contractor can often help with this. Ann Arbor residents should also watch for A2ZERO's next program year through the City of Ann Arbor — it stacks with MiHER and utility rebates when open.
What to Watch
MiHER Intake Restrictions
As of July 2026, MiHER applications are open to low- to moderate-income households only, and new income-qualified applications are paused in the EGLE Detroit District while the program assesses participation against its regional funding allocations. EGLE has said the Detroit District will reopen if its assessment finds sufficient capacity, and that applicants whose applications expire during the pause can reapply once intake reopens. Either restriction lifting — or the pause widening — changes this page's numbers.
IRA Funding Runway
MiHER's $210 million in IRA funding is expected to last until September 2031 or until depleted — and the Detroit District pause shows regional allocations can bind much sooner. Federal policy changes could affect the timeline. Monitor fund levels at michigan.gov/egle or call 855-510-7080.
DTE Funding Availability
DTE rebate funds are first-come, first-served and limited; DTE's rebate page displays a live funds-remaining gauge. When funds run out, the program pauses until the next cycle. Check availability before committing to a project.
TCLP and A2ZERO New Program Years
Both TCLP's residential incentive program and Ann Arbor's A2ZERO rebates ran on program years that ended June 30, 2026. Ann Arbor has said it plans to offer rebates in future years under the Community Climate Action Millage; TCLP's posted measures list still shows the 2025–26 year. New schedules for either could raise or change the amounts on this page.
Utility Gas-to-Electric Policy
DTE currently limits heat pump rebates to electric-heat replacements, and Consumers Energy requires an existing heat pump for its ducted and ground-source rebates. If either utility expands to cover gas-to-electric fuel-switching, it would significantly change the rebate landscape for most Michigan homeowners.
Frequently Asked Questions
What heat pump rebates are available in Michigan in 2026?
Michigan’s main heat pump rebate is the MiHER HEAR program, which offers up to $8,000 for a heat pump at point of sale for households at or below 150% of Area Median Income. Utility rebates add $150–$1,200 from the major utilities: DTE Energy offers $150–$1,200, Consumers Energy offers $300–$350, and Lansing BWL offers $200–$600. Traverse City Light & Power offered up to $3,000 in its 2025–2026 program year, which ended June 30, 2026; a new schedule had not been posted as of July 2026. The federal Section 25C tax credit expired December 31, 2025.
Is the Michigan MiHER program still open?
Yes, with two important restrictions as of July 2026. EGLE states that applications are currently open to low- to moderate-income households only (at or below 150% of Area Median Income), and new income-qualified applications for properties in the EGLE Detroit District are temporarily suspended while the program reviews current applications against its regional funding allocations. Elsewhere in Michigan, income-qualified households can apply. MiHER includes both HEAR (appliance-specific rebates) and HOMES (whole-home performance rebates), with $210 million in total funding.
Can I get a heat pump rebate if I heat with natural gas in Michigan?
Not from the big utilities. DTE Energy restricts heat pump rebates to electric customers replacing existing electric heating. Consumers Energy is stricter still: its ducted air-source and ground-source rebates require replacement of an existing heat pump, and only its mini-split rebate allows replacing any primary electric heat system. Neither covers gas-to-electric conversions. However, the MiHER HEAR program specifically supports fuel-switching from gas or propane to electric heat pumps. Ann Arbor’s A2ZERO program also covered gas-to-electric conversions in its 2025–2026 year, which closed June 30, 2026, with renewal planned.
Do I need a cold-climate heat pump in Michigan?
Yes. Michigan’s winter design temperatures range from 0°F in Detroit and Grand Rapids to -10°F in Marquette. Cold-climate heat pumps rated to operate efficiently at 5°F or below are essential statewide. Look for equipment meeting ENERGY STAR cold-climate criteria: COP of 1.75 or greater at 5°F.
Can I stack Michigan heat pump rebates?
Yes. Utility rebates, MiHER (HEAR or HOMES), and local programs like Ann Arbor’s A2ZERO draw from different funding sources and can stack. The key constraint is that HOMES and HEAR cannot cover the same individual measure. When A2ZERO’s 2025–2026 year was open, a low-income Ann Arbor household could combine HEAR ($8,000) + A2ZERO ($5,500) + DTE ($1,200) for over $14,000 toward a cold-climate system; with A2ZERO between program years as of July 2026, the live stack is HEAR plus a utility rebate where eligible.
What happened to the federal heat pump tax credit?
Both the Section 25C ($2,000/year for heat pumps) and Section 25D (30% for geothermal) federal tax credits expired December 31, 2025 under the One Big Beautiful Bill Act. As of July 2026, the IRS guidance reflects the credits as ended and no replacement federal heat pump credit is active.
Sources
- MiHER Home Energy Rebates (EGLE)
- MiHER: How to Get Your Rebate
- MiHER Program Status Notice (CLEAResult Help Center)
- DTE Energy Heat Pump Rebates
- Consumers Energy 2026 Qualifying Measures (PDF)
- TCLP Residential Incentives (2025–2026 PDF, program year ended June 30, 2026)
- Lansing BWL 2026 Rebate Application
- Ann Arbor A2ZERO Home Energy Rebates (2025–26 year closed June 30, 2026)
- Michigan Saves Financing
- IRS 25C (expired)
Disclaimer: This page covers the main statewide, utility, and local heat pump incentives available to Michigan homeowners in 2026. It does not calculate savings, guarantee eligibility, or represent any incentive program. Michigan has additional cooperatives and municipal utilities that may offer rebates not listed here. We verify status regularly but programs can change without notice. Always confirm current amounts and eligibility with EGLE, your utility, and your contractor before making decisions.
See how this state compares → Heat Pump Rebates by State (2026)