Michigan Heat Pump Rebates

What's available in Michigan

Michigan's 2026 heat pump landscape is anchored by the statewide MiHER program (Michigan Home Energy Rebates), administered by EGLE through CLEAResult, which delivers up to $8,000 per heat pump for income-qualified households at or below 150% AMI plus HOMES whole-home efficiency rebates. MiHER launched statewide April 23, 2025 after a pilot in Marquette County and Holland, and remains open in most of the state, but new income-qualified applications in the EGLE Detroit District (since May 2026) and Warren District (since August 2026) are paused while the program reviews funding capacity. The two largest investor-owned utilities both run residential heat pump rebates: DTE offers $150-$1,200 tiered by efficiency for electric customers replacing electric heat, with the $1,200 top tier reserved for cold-climate ducted units (16+ SEER2 / 9.1+ HSPF2) and ductless mini-splits capped at $1,000; DTE's 2026 funds were about half used by early September. Consumers Energy pays $300 for a ducted air-source unit and $200-$300 for ground-source, both only when replacing an existing heat pump, and $350 for a ductless mini-split replacing any primary electric heat. In the Upper Peninsula, UPPCO pays $300 per ton at SEER2 15+ with stacking bonuses that can reach $700 per ton for a NEEP-listed cold-climate unit. Michigan Saves provides low-interest financing through authorized contractors as a stacking layer. None of the primary program pages publish explicit rules about combining MiHER with utility rebates, so confirm with your contractor. Both federal §25C and §25D credits were repealed December 31, 2025, so utility plus state rebates are the 2026 stack.

HEEHRA in Michigan

HEEHRA rebate: Point-of-sale rebate up to $8,000 for households at or below 80% of area median income. Funded by the IRA, administered by each state. Michigan is finalizing program rules.

How heat pump rebates work in Michigan

Michigan's 2026 heat pump landscape is anchored by the statewide Michigan Home Energy Rebates (MiHER) program, administered by EGLE through CLEAResult, which delivers up to $8,000 per heat pump for income-qualified households under 150% AMI plus up to $4,000 in HOMES whole-home efficiency rebates. MiHER launched statewide April 23, 2025 after a phased pilot beginning October 2024 — making Michigan one of the earlier state HEAR launches at scale. The two largest investor-owned utilities — DTE Energy and Consumers Energy — both run residential heat pump rebate programs: DTE offers $150-$1,200 tiered by efficiency for electric customers replacing electric heat, with only cold-climate ducted systems (16+ SEER2 / 9.1+ HSPF2) earning the $1,200 top tier and ductless mini-splits capped at $1,000. Consumers Energy publishes a 2026 incentive catalog covering ducted air-source, mini-split, and ground-source heat pumps for participating-contractor installs. Michigan Saves provides low-interest financing through authorized contractors as a stacking layer. Federal §25C credits expired December 31, 2025, so utility plus state rebates are the primary 2026 incentive stack.

Michigan rebate programs

6 utility-specific programs not shown here. Enter your ZIP in the calculator to filter to just your utility.

A worked example: electric-resistance retrofit in Detroit

Jamal owns a 1,650 sq ft home in Detroit served by DTE Energy, currently with electric resistance baseboard heat (no central HVAC at all). He gets quotes for a 2.5-ton ducted cold-climate air-source heat pump with new ductwork (since the home has no existing ducts), NEEP cold-climate certified, 17 SEER2 / 9.5 HSPF2. Installed cost: $18,400 including ductwork. Because the install replaces electric resistance heat with a qualifying cold-climate ASHP, he qualifies for DTE's top tier at $1,200. His household income is approximately 75% of Detroit's AMI, placing him below the 80% threshold for MiHER's full-cost-coverage tier. MiHER's heat pump rebate at the 80%-or-below AMI tier covers 100% of project cost up to $8,000 - but as of September 2026 new income-qualified MiHER applications in the EGLE Detroit District are paused while the program reviews funding capacity, so Jamal must wait for the district to reopen or proceed with DTE alone. If the district reopens, $8,000 in MiHER plus $1,200 in DTE = $9,200 in rebate stack against $18,400 and net out-of-pocket of $9,200; until then his stack is $1,200 and net out-of-pocket is $17,200. He coordinates with his DTE-approved, CLEAResult-trained contractor at the quote stage to ensure both rebates are filed at install.

Choosing a contractor in Michigan

Michigan licenses HVAC contractors through the Department of Licensing and Regulatory Affairs (LARA) — Mechanical Contractor license required. Verify at michigan.gov/lara before signing. MiHER (state HEAR + HOMES) requires a contractor trained and registered with CLEAResult, the program administrator. The trained-contractor roster is on michigan.gov via the EGLE Home Energy Rebate Programs page. DTE Energy and Consumers Energy each have their own approved contractor lists for utility rebates; the lists don't fully overlap. Confirm with each program separately before signing.

Common pitfalls for Michigan homeowners

• Trying to claim MiHER HEAR and HOMES on the same heat pump. Federal IRA Section 50121 (HOMES) and 50122 (HEAR) cannot both apply to the same equipment on the same install. Choose the path that pays more for your specific install — HEAR's $8,000 per heat pump is typically larger for single-measure installs, HOMES's whole-home approach wins when bundled with insulation and air sealing. MiHER handles the exclusivity at the application stage.
• Assuming standard ASHPs qualify for DTE's top tier. DTE's $1,200 top tier requires a cold-climate ducted unit at 16+ SEER2 / 9.1+ HSPF2 / 10+ EER2. Ductless mini-splits top out at $1,000 (above 31.5 SEER2 and 10+ HSPF2) or $700 at the standard tier, lower cold-climate tiers pay $900-$1,000, and standard ducted ASHPs receive $150 or $500. Equipment that meets the SEER2 floor but not the HSPF2 ceiling won't qualify for the top tier even with strong cooling efficiency.

Estimate your net cost

How to claim each rebate

1. Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
2. Use a participating contractor. Many programs require a licensed installer from an approved contractor list — especially HEEHRA, which routes through CEC-approved contractors who process the rebate at point of sale.
3. Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
4. Submit utility rebate within 60–90 days of install. Some programs are first-come first-served and close mid-year — funding can run out before the calendar year does.

If you can't afford a replacement in Michigan

Rebates lower the price, but they still assume you can pay the rest. If your heating system is unsafe or has failed and a new one is out of reach, these programs repair or replace equipment at low or no cost for income-qualified households. Heat Pump Pricing Index is an independent information site — we don't fund, discount, or install equipment — so these are the doors to knock on first:

• Weatherization Assistance Program (WAP). Free energy and health-and-safety repairs — an unsafe furnace is exactly the kind of problem it fixes — for households at or near 200% of the poverty line. Apply through your local community action agency: how to apply (energy.gov).
• LIHEAP. Heating-bill help plus, in most states, a crisis component for broken or dangerous heating equipment. Same local agency; Michigan LIHEAP contacts.
• USDA Section 504 Home Repair. For homeowners outside cities: 1% loans up to $40,000, and grants up to $10,000 for homeowners 62 and older to remove health and safety hazards. Program page and state offices (rd.usda.gov).
• Your utility and 211. Most electric and gas utilities run an income-qualified assistance fund — call the number on your bill and ask. Dialing 211 reaches a local specialist who knows which agencies in Michigan currently have funds.

Safety first: if a technician has told you a heat exchanger is cracked, stop using the furnace and make sure you have a working carbon monoxide detector before anything else.

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