Last updated: · Sources verified
Michigan is one of the states where federal rebates are actually open. The Michigan Home Energy Rebates (MiHER) program, run by EGLE, is accepting applications from low- and moderate-income households and can cover up to 100% of project costs for eligible homes, paid directly to your contractor.
HEAR and HOMES in Michigan
HEAR and HOMES are the federal rebate programs that replaced most of the help from the expired heat pump tax credit. Each state runs its own version. How HEAR and HOMES work nationwide.
| Program | Status | Details |
|---|---|---|
| HEAR (electrification rebates) | Open | Delivered through MiHER; applications open to low- and moderate-income households (source) |
| HOMES (whole-home efficiency rebates) | Open | Delivered through MiHER; applications open to low- and moderate-income households (source) |
Heat pump rebates and incentives in Michigan
| Program | Amount | Who qualifies | Key requirements |
|---|---|---|---|
| Michigan Home Energy Rebates (MiHER): HEAR and HOMES Open (source) | Up to 100% of project costs for eligible households; limits set by DOE and EGLE; the rebate is paid to your contractor | Low- and moderate-income households; households below 80% of AMI may get enhanced rebates | Apply online first, then pick a contractor from the MiHER-approved directory, get a home assessment, and complete the approved upgrades. You don’t pay upfront for the covered amount |
Example: what a typical household could get
Example: a household below 80% of AMI that heats with electric baseboards applies to MiHER, picks an approved contractor, and gets a home assessment recommending insulation, air sealing, and a heat pump. After the work is approved and completed, the rebate goes straight to the contractor, so the family doesn’t pay upfront for the covered amount, which can be up to the full project cost. Households between 80% and 150% of AMI get a smaller share. Under DOE’s updated guidance (in effect by September 1, 2026), HEAR can no longer pay to replace gas, oil, or propane equipment; it can still help replace existing electric heating. Ask MiHER which pathway fits a home heated with gas or propane.
How to apply, step by step
- Check your eligibility with MiHER’s AMI calculator. Applications are open only to low- and moderate-income households.
- Submit your MiHER application online. For help, call 855-510-7080.
- Choose an approved contractor from the MiHER directory once your application is accepted.
- Get a home assessment. The contractor identifies eligible upgrades and estimates your rebate.
- Complete the work and sign off. After the post-inspection, the rebate is paid to your contractor.
Choosing a heat pump for Michigan’s climate
Michigan winters are long and cold, especially in the Upper Peninsula and northern Lower Peninsula. Ask for a cold-climate heat pump and check its capacity at low temperatures.
MiHER looks at the whole home, not just the equipment: insulation and air sealing come first, so the heat pump can be smaller and work less on the coldest nights.
Michigan heat pump rebate FAQ
Is the Michigan Home Energy Rebates program open?
Yes. MiHER is accepting applications from low- and moderate-income households across the state.
How much can MiHER cover?
For eligible households, up to 100% of project costs, within limits set by DOE and EGLE. Households below 80% of AMI may qualify for enhanced rebates.
Do I have to pay the contractor first?
No, not for the covered amount. MiHER pays the rebate directly to your contractor after the work is completed.
Can I use my own contractor?
Only if they’re in the MiHER-approved directory. If they aren’t, they can apply to join the program.
Can MiHER pay to replace my gas furnace with a heat pump?
Not through HEAR anymore: DOE’s updated guidance, in effect by September 1, 2026, no longer lets HEAR rebates replace gas or other fossil-fuel appliances. Ask MiHER whether a whole-home (HOMES) project could work for your home.
Rebates in nearby states
- Heat pump rebates in Indiana
- Heat pump rebates in Wisconsin
- All states: heat pump tax credit and rebates guide
Sources
Programs change often. We verify every figure against the official source listed above; if something looks out of date, let us know.