Michigan launched its HEAR program through Michigan Saves, a nonprofit on-bill financing and rebate administrator with an established network of enrolled contractors across the state. This is one of the stronger state implementations: Michigan Saves had existing contractor relationships before HEAR launched, reducing the enrollment backlog that has plagued other states.
Michigan also has significant utility rebate programs — DTE Energy and Consumers Energy both have active heat pump and efficiency programs. The stacking opportunity in Michigan, when combined with 25C credits, is among the better non-coastal options in the country.
Michigan Saves (michigansaves.org) is the designated administrator for Michigan's HEAR program. Their existing infrastructure — developed over 15+ years for on-bill financing and efficiency programs — gave Michigan a significant advantage at launch. Michigan Saves coordinates with utilities and maintains the enrolled contractor network statewide.
| Measure | LMI (<80% AMI) | Moderate (80–150% AMI) | Notes |
|---|---|---|---|
| Heat Pump HVAC (ducted) | Up to $8,000 | Up to $4,000 | Air-source; minimum efficiency requirements per program specs |
| Heat Pump (mini-split/ductless) | Up to $8,000 | Up to $4,000 | ENERGY STAR; cold-climate rated preferred given Michigan winters |
| Heat Pump Water Heater | Up to $1,750 | Up to $875 | ENERGY STAR certified; garage or basement installation common in MI |
| Electric Stove/Induction Cooktop | Up to $840 | Up to $420 | Induction preferred; replacing natural gas most common scenario |
| Heat Pump Dryer | Up to $840 | Up to $420 | ENERGY STAR certified |
| Electrical Panel Upgrade | Up to $4,000 | Up to $2,000 | When panel is capacity constraint; common in older Michigan housing stock |
| Insulation & Air Sealing | Up to $1,600 | Up to $800 | Required documentation varies; typically bundled with HVAC |
| Wiring (240V circuits) | Up to $2,500 | Up to $1,250 | For heat pump, EV charger, appliance circuits |
| Household Maximum | $14,000 | $7,000 | Per household per calendar year across all HEAR measures |
Michigan's HOMES program (whole-home efficiency rebates) is administered alongside HEAR through Michigan Saves. Michigan is one of the better-positioned states for HOMES because of its existing energy audit infrastructure and BPI-certified auditor network.
| Savings Level | Market Rate Rebate | LMI Rebate |
|---|---|---|
| 20–35% energy savings | Up to $2,000 | Up to $4,000 |
| 35%+ energy savings | Up to $4,000 | Up to $8,000 |
Michigan's older housing stock — particularly in Detroit, Flint, Lansing, and smaller industrial cities — often has conditions ripe for deep retrofits. Homes from the 1940s–1970s with minimal insulation and aging gas furnaces can hit 35%+ savings targets, unlocking the maximum HOMES tier.
| Measure | Credit | Annual Cap | Income Limit |
|---|---|---|---|
| Heat Pump HVAC (25C) | 30% of cost | $2,000/year | None |
| Heat Pump Water Heater (25C) | 30% of cost | $2,000/year | None |
| Insulation & Air Sealing (25C) | 30% of cost | $1,200/year | None |
| Electrical Panel (25C) | 30% of cost | $600/year | None |
| Home Energy Audit (25C) | 30% of cost | $150/year | None |
| Solar (25D) | 30% of cost | No cap | None |
Michigan's climate (Zone 5-6) means cold-climate heat pump performance matters. The IRS has confirmed that cold-climate heat pumps (ENERGY STAR cold-climate certified, rated for operation below 0°F) qualify for the 25C credit. When advising Michigan clients on equipment selection, cold-climate rated equipment (Mitsubishi Hyper Heat, Bosch IDS, Carrier Infinity 26, etc.) both qualifies for HEAR/25C and addresses client concerns about Michigan winters.
Michigan's two major investor-owned utilities — DTE Energy (southeast Michigan, Detroit metro) and Consumers Energy (west and central Michigan) — both run active rebate programs that stack with HEAR and 25C credits.
| Measure | Rebate Amount | Requirements |
|---|---|---|
| Heat Pump HVAC (air-source) | $200–$500 | 15+ SEER2; ENERGY STAR; cold-climate models eligible for higher tier |
| Heat Pump Water Heater | $200–$400 | ENERGY STAR certified; 50+ gallon typical; replacing electric or gas |
| Smart Thermostat | $75 | ENERGY STAR; Wi-Fi enabled |
| Insulation (attic) | $0.15–$0.20/sq ft | Up to R-49 final; rebate based on square footage |
| Air Sealing | $200–$400 | Blower door test pre/post; ACH50 improvement required |
Verify at newlook.dteenergy.com/wps/wcm/connect/dte-web/home/save-money-and-energy/for-my-home.
| Measure | Rebate Amount | Requirements |
|---|---|---|
| Heat Pump HVAC | $200–$600 | ENERGY STAR; 15 SEER2 minimum; higher for cold-climate models |
| Heat Pump Water Heater | $150–$350 | ENERGY STAR certified; 40–80 gallon |
| Smart Thermostat | $50–$75 | ENERGY STAR |
| Home Energy Assessment | Free (program-sponsored) | Through Consumers Energy Energy Efficiency Program |
Verify at consumersenergy.com/residential/programs-and-special-offers/clean-energy/energy-efficiency-programs.
Northern Michigan is primarily served by electric cooperatives (Great Lakes Energy, Cherryland Electric, Thumb Electric, others). These co-ops vary in rebate availability — some have adopted Michigan Saves' programs, others have independent programs. Call the specific co-op for clients outside DTE/Consumers territory.
| Metro Area | 4-Person 80% AMI | 4-Person 150% AMI | Notes |
|---|---|---|---|
| Detroit-Warren-Dearborn MSA | ~$79,000 | ~$148,125 | Wayne, Oakland, Macomb counties; broad moderate-income opportunity |
| Ann Arbor MSA | ~$88,000 | ~$165,000 | Washtenaw County; university town with high AMI |
| Grand Rapids-Wyoming MSA | ~$78,000 | ~$146,250 | Kent County |
| Lansing-East Lansing MSA | ~$72,000 | ~$135,000 | Ingham, Clinton, Eaton counties |
| Flint MSA | ~$59,000 | ~$110,625 | Genesee County; significant LMI household opportunity |
| Kalamazoo-Portage MSA | ~$70,000 | ~$131,250 | Kalamazoo County |
| Rural Northern Michigan | ~$52,000–$60,000 | ~$97,500–$112,500 | Varies by county; check HUD tables |
| Program | Status | Max Value (HP HVAC, LMI) |
|---|---|---|
| Michigan HEAR (Michigan Saves) | Live | Up to $8,000 |
| 25C Federal Tax Credit | Available now | $2,000/year |
| DTE Energy Rebate (SE Michigan) | Available now (verify) | $200–$500 |
| Consumers Energy Rebate (W/C Michigan) | Available now (verify) | $200–$600 |
| Michigan HOMES (Michigan Saves) | Live | Up to $8,000 (35%+ savings, LMI) |
Client: Family of 4 in Wayne County, income $65,000 (82% of Detroit AMI — LMI tier). Replacing aging gas furnace + window AC units with dual-zone cold-climate mini-split system, plus heat pump water heater. Total cost: $18,000.
Michigan Saves also offers on-bill financing through participating utilities — this is one of their core original programs. For clients who qualify for rebates but still face significant out-of-pocket costs, on-bill financing can cover the remainder at rates often below market. The rebate reduces the financed principal. This is a stronger client pitch than a rebate alone.
Michigan Saves maintains a contractor network with an established enrollment process. Because Michigan Saves pre-existed HEAR, many contractors in their network were already enrolled when HEAR launched — reducing the backlog experienced in other states.
Program amounts change. Contractor enrollment requirements evolve. The IRA Practitioner Brief tracks Michigan Saves updates and covers income documentation issues, stacking strategies, and contractor tips — weekly, free for three issues.
Last updated: March 30, 2026. Program details subject to change. Verify current rebate amounts and program status at michigansaves.org and with utility program administrators before advising clients.