How Michigan's rebates are organized
Most Michigan homes heat with gas, so most of the money is for furnaces, insulation and thermostats, not heat pumps. Your electric and gas companies run their own programs, a few cities run their own, and the state runs one large program for lower-income households. The page for each city shows the offers that apply there. We read every official page we cite, and we mark any amount we could not confirm.
Which company serves you
Look at your bill. In the four cities we cover: Detroit and Ann Arbor homes usually buy from DTE Energy. Grand Rapids homes usually buy from Consumers Energy. Lansing homes usually buy electricity from the Board of Water and Light and gas from Consumers Energy. Ann Arbor also has its own A2ZERO city rebates. If your address is outside these cities, start with the company named on your bill.
Heat pumps are the exception, not the rule
The Census Bureau's American Community Survey (2020 to 2024) says utility gas heats 80.5% of Detroit homes, 82.5% of Grand Rapids homes, 70.7% of Ann Arbor homes and 74.6% of Lansing homes. DTE and Consumers pay little or nothing to switch a gas home to a heat pump. The big exceptions are Ann Arbor's city program and the Lansing Board of Water and Light. That is why this page leads with them.
What is paused or ended
The state's MiHER program can cover up to the full project cost for lower-income households, with caps of $14,000 for electric equipment and $20,000 for whole-home efficiency. Its page says new income-qualified applications are temporarily unavailable in the Detroit, Warren, Grand Rapids, Lansing and Kalamazoo districts. The state page names districts, not counties, and Ann Arbor's district is not named, so look up your county on the state's map. The federal home energy tax credits (25C and 25D) ended for work finished after December 31, 2025.
Free and low-cost help
Michigan's weatherization program is free for households at or below 200% of the federal poverty level. DTE's Energy Efficiency Assistance covers 250%. Read our free weatherization guide. If you pay yourself, Michigan Saves offers fixed-rate loans through credit unions at 6.24% to 6.99% APR. For smaller upgrades, see our water heater guide and smart thermostat guide.
Cities we cover
- Detroit: DTE Energy furnace, insulation and thermostat rebates.
- Grand Rapids: Consumers Energy furnace and insulation rebates.
- Ann Arbor: the city's A2ZERO rebates plus DTE.
- Lansing: the Board of Water and Light heat pump rebate.
Statewide guides: water heaters, smart thermostats and free weatherization.
Common questions
Read the questions and answers
Is there a statewide heat pump rebate in Michigan?
Not from the utilities. The state's MiHER program covers heat pumps for lower-income households, but new income-qualified applications are paused in five districts. Ann Arbor and Lansing have local heat pump rebates.
Which Michigan city pays the most for a heat pump?
Of the four cities we cover, Ann Arbor pays $4,000 ($5,500 lower income) and Lansing's Board of Water and Light pays $4,000 to $5,000 for a gas-to-heat-pump switch.
Can I still get the federal tax credit?
No. The federal home energy credits ended for work finished after December 31, 2025.
What is the easiest rebate to claim?
A $50 smart thermostat rebate from DTE or Lansing BWL. Consumers Energy lists $50 to $100.
Where do I find free help?
The state weatherization program covers households at or below 200% of the federal poverty level, and DTE covers 250%. See our free weatherization guide.
By Sam Menard. Sources, last read October 10, 2026: Michigan EGLE: Home Energy Rebates, Michigan Saves home energy loans, Michigan weatherization assistance, US Census Bureau, ACS 5-year estimates 2020-2024 (heating fuel).
