Michigan Home Energy Rebates programs roll out to first Michigan households

LANSING, Michigan – Today, the Michigan Department of Environment, Great Lakes, and Energy (EGLE) announced a milestone in the rollout of Michigan’s Home Energy Rebates (MiHER) programs. Supported by the Biden-Harris Administration’s Inflation Reduction Act (IRA), MiHER will help Michigan households save thousands of dollars on energy expenses through home energy improvements and new, efficient appliances.  

“The Michigan Home Energy Rebates programs will lower energy costs for Michiganders,” said Governor Gretchen Whitmer. “Thanks to the Biden-Harris Administration and our hardworking congressional delegation, we have federal resources available to help families upgrade their homes with more energy-efficient home appliances, helping them stay cool in the summer and warm in the winter while saving working families up to $34,000. Let’s keep working together to make a real difference in people’s lives by lowering their upfront home energy upgrade costs and saving them money on their bills in the long run.”  

MiHER kicked off today with a pilot launch involving 50 households in Marquette County and Holland, where the Upper Peninsula Power Company, SEMCO ENERGY Gas Company, and the Holland Board of Public Works have partnered with EGLE to jumpstart the programs. This pilot will test the programs to ensure a successful full launch. With this pilot, Michigan becomes the first state in the Midwest to launch both of the Home Energy Rebates’ two component programs. 

MiHER is set to launch statewide in early 2025. The two component programs described below will serve up to 15,000 households across the state. These two rebate options cover both single and multifamily homes and target energy efficiency and electrification upgrades. Michigan renters and homeowners interested in the programs can learn more on EGLE’s MiHER webpage. 

• $105.7 million in Home Efficiency Rebates (HER) will provide funding to lower the upfront cost of whole-home energy efficiency upgrades, including insulation, air sealing, heating, and cooling. HER covers rebates for energy efficiency upgrades that save between 15-20% of the home’s energy use. Households are eligible for up to $20,000. 

• $105.3 million in Home Electrification and Appliance Rebates (HEAR) will help reduce the upfront cost of efficient electric technologies, with rebates for high-efficiency home appliances and equipment. Among the maximum rebates available are $840 for an electric stove or dryer; $1,750 for a heat pump water heater; $1,600 for insulation, air sealing, and ventilation; $2,500 for electric wiring upgrades; and $8,000 for a heat pump for heating or cooling. Households are eligible for up to $14,000. 

“Michigan’s Home Energy Rebates programs will offer families thousands of dollars to help them upgrade their homes, purchase efficient appliances, and lower their energy costs,” said EGLE Director Phil Roos. “These programs support the goals of the MI Healthy Climate Plan and will grow the state’s booming clean energy economy. EGLE is excited to prove these programs in Holland and Marquette County and launch statewide early next year. We urge contractors to sign up now to help us roll out the programs.”  

Across the two programs, households are eligible for up to $34,000 in rebates. While all Michigan households – homeowners or renters – should pursue energy efficiency upgrades, MiHER will prioritize households with greater energy savings opportunities for incomes at or below 80% of their county’s Area Median Income (AMI), including residents participating in other federal assistance programs.  

Eligible households across the state may apply through the MiHER webpage once the full programs begin in 2025. Households earning greater than 150% AMI are encouraged to consider energy efficiency and electrification upgrades to take advantage of the Home Energy Tax Credit.  

Michigan households can find out about what clean energy federal, state, local, and utility dollars they are eligible for on the Michigan Energy Efficient Upgrade Savings Calculator.  

EGLE’s Materials Management Division will administer MiHER alongside partners CLEAResult and Walker-Miller Energy Services. CLEAResult is North America’s largest provider of energy efficiency, energy transition, and energy sustainability services. Walker-Miller Energy Services, based in Detroit, is one of the largest African American- and woman-owned energy efficiency companies in the U.S. The department is developing a network of prequalified contractors who can work under the programs, offering rebates to eligible households, supporting the growth of clean energy jobs in communities across the state. 

Contractors will be an integral part in the success of MiHER, enrolling families, assessing homes, conducting energy upgrades, and capturing energy savings. Contractors are also eligible to receive bonuses for qualified projects in eligible communities. Contractors are encouraged to sign up now to learn more about program requirements and how to become prequalified to participate in MiHER.  

“The Michigan Home Energy Rebates program is a triple win! It’s going to help contractors and small businesses grow, benefits Michigan residents by reducing their energy consumption and costs, and helps reduce carbon emissions and combat climate change,” said Brynn Cooksey, owner and general manager of Air Doctors Heating and Cooling. 

Governor Whitmer announced MiHER in May, celebrating Michigan’s national leadership in bringing home climate- and clean energy-related federal funding. Michigan received $211 million for MiHER through the IRA, which authorized the U.S. Department of Energy to establish Home Energy Rebates nationally, saving households up to $1 billion annually on energy bills and supporting more than 50,000 U.S. jobs. 

“With winter approaching, we are thrilled that Michiganders can begin to take advantage of these rebate programs,” said Keishaa Austin, principal deputy director in the Department of Energy’s Office of State and Community Energy Programs. “By making home heating, insulation, weatherization, and so many other upgrades more affordable, not only will these programs help people stay warm, but they can help people save hundreds to thousands of dollars in the process.” 

Upgrading appliances can make a big difference in lowering costs for families, as 86% of the energy used in a home comes from heating and cooling spaces, boiling water, cooking, and refrigeration.  

These upgrades also support the goals of the MI Healthy Climate Plan (MHCP), the state’s roadmap to carbon neutrality. The MHCP includes recommendations to lower emissions from homes and businesses 17% by 2030, increase access to clean financing opportunities, provide incentives for efficient appliances, and more.