Michigan · updated for 2026

Michigan Home Energy Rebates & Incentives (2026)

Last updated July 2, 2026

Short answer: As of 2026, Michigan has a live HEEHRA home-electrification rebate program — income-qualified households may get up to $8,000 toward a heat pump (plus more for heat-pump water heaters, induction stoves, and panel upgrades). The federal heat pump (25C) and solar/battery (25D) tax credits expired December 31, 2025, so those are gone. Utility rebates may also apply.

Federal incentives in 2026 (mostly gone)

The One Big Beautiful Bill Act ended several federal home-energy credits after December 31, 2025. In 2026 there is no federal heat pump tax credit (Section 25C), no 30% residential solar/battery credit (Section 25D for solar), and no federal EV purchase credit. The main survivor is the federal credit for geothermal (ground-source) heat pumps, which continues under Section 25D through 2032.

Michigan state rebates (HEEHRA)

Michigan has launched the Home Electrification and Appliance Rebates (HEEHRA) program, funded federally and run by the state. For households below 80% of area median income, the heat pump rebate can reach $8,000; households at 80–150% can get up to $4,000. There are additional caps for heat-pump water heaters, induction stoves, and electrical-panel upgrades.

Always confirm funding. HEEHRA money is limited and some states have paused new applications after demand. Verify current availability before you count on a rebate.

Utility rebates in Michigan

Independent of state and federal programs, many electric utilities offer their own rebates — commonly $300–$1,500 for a qualifying heat pump, and sometimes smaller amounts for smart thermostats, heat-pump water heaters, or EV chargers. With Michigan electricity at about 18¢/kWh, these utility programs are often the most reliable savings still on the table in 2026. Check your utility's "rebates" or "energy efficiency" page.

Solar & EV in Michigan

Without the federal solar credit, rooftop solar in Michigan now pays back through bill savings and net metering rather than an upfront discount — run the numbers with our Solar Calculator. For electric vehicles, the federal purchase credit ended after 2025, though some states and utilities still offer EV or home-charger rebates; compare running costs with our EV vs Gas calculator.

See what actually pays off in Michigan. Rebates are only half the story — the running-cost math matters more. Run the Heat Pump vs Gas Furnace Calculator → (it pre-loads Michigan energy prices).

Frequently asked questions

Are there still heat pump rebates in Michigan in 2026?

Michigan has a live HEEHRA program, so income-qualified households may receive up to $8,000 toward a heat pump. The federal 25C tax credit expired December 31, 2025. Many Michigan utilities also offer their own heat pump rebates.

Is there a solar tax credit in Michigan in 2026?

No federal solar tax credit — the 30% residential credit (Section 25D) expired December 31, 2025. Solar in Michigan now pays back through bill savings and net metering. Some states and utilities offer their own solar incentives; check yours.

How do I find rebates in Michigan?

Start with your state energy office (search "Michigan home energy rebates") and your electric utility's rebate page. Confirm current funding before assuming a rebate — programs change month to month and can run out.

Incentive programs and funding change frequently. This page reflects the situation in 2026; confirm current eligibility and funding with your state energy office and utility before purchasing. Not tax advice.