What insulation rebates pay in Ann Arbor
The city lists square footage and R-value rules for each insulation type. We show the amounts and the main rules here. Read the city's technical page before you sign a contract.
A2ZERO insulation
Contractor installation is required. The city also lists combined bonuses of $1,500 ($2,000) for several measures.
A2ZERO air sealing
Needs a blower door test before and after, with at least 20% less air leakage.
DTE attic insulation
For DTE gas customers with at least 500 square feet of attic. The bonus needs a second measure done September 15 to December 15, 2026.
DTE assessment and air sealing
Rebates for the blower door test and for cutting leakage by 10%, 20% or 40%.
DTE Energy Efficiency Assistance
No-cost upgrades for households at or below 250% of the federal poverty level.
Federal 25C and 25D tax credits
The federal home energy credits ended for work finished after December 31, 2025. A quote that counts on them is out of date.
Why this fits Ann Arbor
The Census Bureau's American Community Survey (2020 to 2024) says 63.4% of Ann Arbor homes were built before 1980 and 14.8% before 1940. Utility gas heats 70.7% of homes. In older homes, attics and rim joists are the most common places that heat escapes, and fixing them costs less than new equipment.
Which program to use first
Start with the blower door test, because both programs reward it. The city wants a test before and after with at least 20% less leakage. DTE pays $75, $125 or $150 for 10%, 20% or 40% less leakage. One test can serve both applications if the numbers meet each rule. Ask the contractor to write the results in a form you can send to both.
Check the program rules for stacking
Neither page says you cannot claim both, but neither page says you can. Call both programs and ask in writing. Also remember that a rebate from the city cannot be more than 90% of the cost of the measure.
Get the numbers in writing
Ask each contractor to put the square feet, the R-value and the air leakage target in the quote. Those three numbers decide both applications. If a quote is vague, the rebate may be too.
Condos and attached homes
12.3% of Ann Arbor homes are attached and 8.8% are in buildings of two to four units. DTE's insulation rebates are for single-family homes with no more than two connected units, each with its own meter. The city's program is open to owners and renters of residential property in Ann Arbor, so it may fit homes DTE does not. Confirm with the city.
How to claim insulation rebates in Ann Arbor
- Book a home energy assessment that includes a blower door test.
- Get a written quote for each measure, with the area and R-value.
- Reserve the city rebate before work starts, and plan the DTE bonus dates.
- Finish the work, and get a second blower door test if you are claiming air sealing.
- Send the city application within 90 days of approval, and apply to DTE within six months of buying.
Common questions
How much does the city pay for insulation?
$500 per measure, or $1,000 for households at or below 120% of area median income. The city also lists higher combined bonuses.
What does DTE pay for an attic?
$600 for at least 500 square feet, plus a $250 bonus when you add another measure during the bonus window.
Is air sealing covered?
Yes. The city pays $500 ($1,000) with a 20% leakage cut proven by blower door tests. DTE pays $75 to $150 by how much leakage you cut.
Can I do the work myself?
The city requires contractor installation. DTE's pages ask for an invoice. Plan on hiring a professional.
Does the federal credit apply?
No. The federal insulation credit ended for work finished after December 31, 2025.
What to do next
Back to the Ann Arbor rebate guide, or read about the city's heat pump rebate. For free help at low income, see free weatherization in Michigan.
By Sam Menard. Sources, last read October 6, 2026: City of Ann Arbor: A2ZERO rebates, DTE Energy: insulation and windows, DTE Energy: home energy assessment, IRS: residential clean energy credit, US Census Bureau, ACS 5-year estimates 2020-2024 (heating fuel). All Ann Arbor rebates → Every Ann Arbor A2ZERO rebate →
