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Home Energy Rebate Programs

Multifamily houses
Environment, Great Lakes, and Energy

Home Energy Rebate Programs

 Provide input on the EGLE Home Energy Rebates through July 2024

EGLE home energy rebates applications are targeted to open in the Fall of 2024. EGLE hosted in-person and virtual engagements sessions across Michigan to prepare for federal home energy rebate funding in March and April. EGLE continues to seek stakeholder input on both the design and implementation of the rebate programs. EGLE is seeking to diversify input, to discuss localized context, and to accommodate those that could not make regional in-person meetings by hosting virtual sessions and accepting online feedback.

Stakeholders can provide input by taking this short survey and submitting comments or suggestions to EGLE-MMD-HER@Michigan.gov.

The Inflation Reduction Act (IRA) authorized the U.S. Department of Energy (DOE) to carry out the Home Energy Rebate Programs to help households save money on energy bills, improve energy efficiency, and reduce indoor and outdoor air pollution. The Home Energy Rebate Programs consists of two programs: the Home Efficiency Rebates (IRA Section 50121) and the Home Electrification and Appliance Rebates (IRA Section 50122).

The Home Efficiency Rebates will provide funding to lower the upfront cost of whole-home energy efficiency upgrades in single-family and multi-family homes aiding retrofitting and electrification efforts. The Home Electrification and Appliance Rebates will help finance the upfront cost of efficient electric technologies in single-family and multi-family homes.

Collectively, the Home Energy Rebate Programs have $8.8 billion in funds for the benefit of U.S. households, to be distributed to households by State Energy Offices and Indian Tribes. Michigan’s Home Energy Rebate Programs will be administered by EGLE’s Energy Services Unit.

Timeline

Applications opened for program administrators (e.g., States and Indian Tribes) on July 27, 2023 and close January 31, 2025. Below is the current estimated timeline for the rollout of Michigan's Home Energy Rebate Programs.

Milestone

Timeline

DOE awards EGLE planning funds November 2023
EGLE opens a Request for Proposals to find a consultant that will assist with program planning December 21 2023
EGLE reviews proposals and selects a consultant February 2024
EGLE and consultant conducts research, stakeholder engagement, and develops program application March 2024 - August 2024*
EGLE submits program application to DOE May 2024*
DOE awards EGLE implementation funds July 2024*
EGLE opens program to households
October 2024*

* Tentative

Eligibility requirements

The specific program design and requirements for the Michigan Home Energy Rebates Program has not yet been designed, and the information below summarizes the maximum allowed rebate amounts defined in the law for different types of home efficiency and electrification projects.

Home Efficiency Rebates (50121)

  • Single-family and multifamily households are eligible for rebates for energy efficiency upgrades that are modeled to save at least 20% of the home’s energy use or measured to save at least 15% of the home’s energy use.
  • Greater energy savings and households with incomes at or below 80% of area median income (AMI) will be eligible for rebates covering a higher percentage of total project costs, with the maximum rebate capped at $8,000.

Home Electrification and Appliance Rebates (50122) 

  • Single-family and multifamily households are eligible for rebates for high efficiency home appliances and equipment.
  • Qualified products and maximum rebates per product are listed below:

Qualified Product

Maximum Rebate

Heat Pump Water Heater $1,750
Heat Pump for Space Heating or Cooling $8,000
Electric Stove, Cooktop, Range, Oven, or Heat Pump Clothes Dryer $840
Building Materials Electric Load Service Center $4,000
Insulation, Air Sealing, and Ventilation $1,600
Electric Wiring $2,500
  • Households with incomes at or below 80% AMI will be eligible for rebates covering a higher percentage of total project costs, with the maximum rebate capped at $14,000.
NOTE: A single address cannot receive a rebate from both 50121 and 50122 for the same measure.   

Funding amount

Michigan received just over $211.1 million for the Home Energy Rebate Programs; of this, $105.9 million is allocated for the Home Efficiency Rebates and $105.2 million is allocated for the Home Electrification and Appliance Rebates. 

Additional resources