Michigan Heat Pump Rebates
Stackable incentives available to Michigan homeowners installing a qualifying heat pump in 2026.
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 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. 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 cold-climate and mini-split systems earning the top tier. Consumers Energy publishes a 2026 incentive catalog covering ducted air-source, mini-split, and ground-source heat pumps for participating-contractor installs (specific 2026 amounts still being verified for this listing). Michigan Saves provides low-interest financing through authorized contractors as a stacking layer. Federal §25C credits expired Dec 31, 2025, so utility plus state rebates are the primary 2026 incentive 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 cold-climate and mini-split systems earning the top tier. 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
DTE Energy Air-Source Heat Pump Rebate
$1,200Up to $1,200 for DTE residential electric customers replacing electric heating with a qualifying air-source heat pump; cold-climate (16+ SEER2 / 9.1+ HSPF2) and ductless mini-split systems earn the top tier. Rebates start at $150 for standard configurations and are limited to single-family homes with individual electric meters.
Michigan Home Energy Rebates (MiHER) — HEAR Heat Pump
$8,000Up to $8,000 for a qualifying heat pump (space heating or cooling) under the federally funded IRA HEAR program, administered by Michigan EGLE through CLEAResult. Households below 80% AMI may receive up to 100% of project cost; 80–150% AMI receive up to 50%. Statewide launch announced April 23, 2025.
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% AMI tier covers 100% of project cost up to $8,000. So $8,000 in MiHER plus $1,200 in DTE = $9,200 in rebate stack against $18,400. Net out-of-pocket: $9,200. 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 cold-climate certification (16+ SEER2 / 9.1+ HSPF2) or ductless mini-split configuration. Standard ducted ASHPs at lower efficiency tiers receive smaller rebates ($150 to $800). 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
Used to determine HEEHRA eligibility (under 80% area median income).
- DTE Energy Air-Source Heat Pump Rebate−$1,200
Estimate only. Includes only programs accepting applications today — waitlisted or closed programs are excluded. Mutually exclusive programs (e.g. HEEHRA vs HOMES) and project-cost caps are applied per current program rules; confirm with your installer and utility before signing.
How to claim each rebate
- Get pre-approved (where required). Some utility programs require approval before install. Check program details before signing a contract.
- 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.
- Save documentation. AHRI certificate, model numbers, and itemized invoice are required for most utility rebates.
- 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.