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Home Energy Rebate Programs

Multifamily houses
Environment, Great Lakes, and Energy

Home Energy Rebate Programs

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.

Contact

EGLE-EnergyServices@michigan.gov 

Stay Updated

Sign up for the Home Energy Rebate Programs Notifications for progress updates 

Eligibility Requirements

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. 

Timeline

Applications opened for program administrators (e.g., States and Indian Tribes) on July 27, 2023 and close January 31, 2025.  

As of August 2023, EGLE is waiting for approval from DOE to use a small portion of the funds to hire a consultant to help with program planning. Below is an estimated timeline for the rollout of Michigan's Home Energy Rebate Programs.
NOTE - Every month DOE delays approval of EGLE's planning award, the subsequent actions in the timeline will also be pushed back. 

Milestone Timeline
DOE awards EGLE planning funds September 2023
EGLE opens a Request for Proposals to find a consultant that will assist with program planning October 2023
EGLE reviews proposals and selects a consultant December 2023
EGLE and consultant conducts research, stakeholder engagement, and develops program application January 2024 - June 2024
EGLE submits program application to DOE July 2024
DOE awards EGLE implementation funds September 2024
EGLE opens program to households
October 2024

Additional Resources