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FAQ: Home Energy Rebates
FAQ: Home Energy Rebates
Home energy rebates are available to Michigan residents to help make their homes, and our state, cleaner, efficient, reliable, and more affordable.
The Home Efficiency Rebates (HER) will provide funding to lower the upfront cost of whole-home energy efficiency upgrades in homes and apartments aiding retrofitting and electrification efforts. The Home Electrification and Appliance Rebates (HEAR) will help lower the upfront cost of efficient electric technologies in single-family and multi-family homes.
Frequently asked questions
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When will the program begin? When will rebates be available?
EGLE intends for some rebates to be available in late 2024, with the remaining rebates available by early 2025.
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Where can I find out more about Michigan’s Home Energy Rebates Program?
EGLE is currently designing Michigan’s Home Energy Rebates Program and will expand the program website and distribute outreach materials closer to the anticipated program launch in fall 2024.
In addition, EGLE is awaiting approval from DOE of its Home Energy Rebates Program applications.
In the meantime, anyone interested in the program is encouraged to monitor this webpage for further program updates.
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Can I participate in both the HOMES and HEAR programs?
Yes, under certain circumstances.
A single household may participate in both the Home Efficiency Rebate Program (HOMES) and Home Electrification and Appliance Rebate (HEAR) programs under the following conditions:
- The household meets all income requirements for both the HOMES and HEAR Programs.
- HOMES and HEAR may not be combined with each other for the same single upgrade. Additionally, neither program may be combined with other federal grants or rebates for the same single upgrade.
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What can I do now to prepare for the rebates?
There are many steps homeowners and renters can take now to prepare for Michigan’s Home Energy Rebates Program. If your home needs urgent energy efficiency upgrades, do not wait for the Home Energy Rebates to become available in your area.
If you need financial support to accomplish these upgrades, existing programs like the Weatherization Assistance Program and tax credits may be available.
If you are not sure which energy upgrades may be a good fit for your home, consider contacting your electric utility or getting a home energy assessment from a professional.
In some cases, home energy assessments may be offered at low or no cost from existing programs and may be eligible for tax credits of up to 30% of the assessment cost.
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Who is eligible for rebates?
Rebates are available to households requiring energy efficiency upgrades as determined by an official home assessment.
EGLE intends to prioritize funding for low- and middle-income households as determined by area median income (AMI).
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If I am not eligible for the Home Energy Rebates Program, do I have alternative options to receive incentives for energy efficiency upgrades?
Yes, Michigan residents who are not eligible for the Home Energy Rebates Program are encouraged to apply for other energy efficiency funding, such as the IRA tax credits or utility rebates programs.
Similar to the Home Energy Rebates Program, these initiatives offer financial support to households seeking energy efficiency upgrades.
Additionally, these alternatives offer wide eligibility, with the IRA tax credits and many utility programs being available to all households regardless of income level.
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How much funding can I receive from the Home Energy Rebates Program?
Rebate levels will vary by household depending on income level and necessary upgrades as determined by a home assessment. Rebates for the HEAR program may not exceed $14,000 per household. Rebates for the HOMES program may not exceed $20,000 per household.
To explore all potential funding options for your household, please review the Michigan Home Energy Incentives Calculator. This Michigan-specific resource can help you determine the best available sources for energy efficiency funding.
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Will I be taxed on the rebate amount?
Michigan’s Home Energy Rebates Program will be treated as a reduction in the purchase price or cost of property for eligible upgrades and projects.
The consumer that receives the IRA rebate will not be required to report the value of that rebate as income.
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I need a home energy upgrade now. What should I do?
EGLE does not recommend that households wait to accomplish needed home energy upgrades or projects.
Households looking for home energy upgrades assistance today may be eligible for other federal programs, including tax credits, the Weatherization Assistance Program, and other local utility programs.
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Can I get the rebate retroactively?
EGLE will only fund upgrades completed after the Michigan Home Energy Rebates Program launch.
Additionally, upgrades must be approved prior to installation.
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How will EGLE protect consumers and ensure that retailers and contractors do not inflate prices?
EGLE is developing a Consumer Protection Plan that includes mechanisms to prevent fraud perpetrated by contractors. The Consumer Protection Plan will be posted when it is available.
EGLE is committed to ensuring consumers are informed of best practices for identifying unfair business practices when engaging with contractors.
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Can we use other incentive programs in conjunction with these rebates?
EGLE expects that Michigan residents will be able to use multiple programs, including local utility rebates, with Michigan’s Home Energy Rebates Program. More information on combining incentives will be available when the full program launches in early 2025.
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How is EGLE providing rebates that specifically meet the needs of disadvantaged communities?
EGLE intends to offer larger rebates to households with incomes less than 80% of AMI.
Beyond the rebates, this program will benefit a robust workforce in communities. EGLE will support and develop the state’s contractor network by providing training and outreach to ensure communities have access to high quality contractors qualified to install upgrades.
In addition, EGLE will coordinate with state agencies, utilities, and nonprofits to ensure we provide robust program outreach and education in disadvantaged communities.
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What documentation is required to prove income eligibility?
To determine income eligibility, EGLE will utilize both direct proof of income and categorical eligibility.
For direct proof of income, applicants may provide the following documentation:
- Pay statement with YTD earnings from each employer
- 1040 IRS Tax Form (if self-employed)
- W2/1099 Tax Form (most recent year)
- Unemployment/benefit statement or payment history
- Government benefit statement
- Retirement/pension statement
As an alternative, categorical eligibility is the determination that a household meets income requirements by verifying household participation in another state or federal program. Specifically, these programs include income qualification thresholds at least as stringent as the relevant Home Energy Rebates threshold.
Programs that provide categorical eligibility fall into two categories:
Categorical Eligibility for Households:
- If a household participates in one of the programs listed below, it automatically qualifies for the Home Energy Rebates Program:
- Low Income Home Energy Assistance Program (LIHEAP)
- Medicaid
- Supplemental Nutrition Assistance Program (SNAP)
- Head Start
- Lifeline Support for Affordable Communications (Lifeline)
- Food Distribution Program on Indian Reservations (FDPIR)
- National School Lunch Program -Free (NSLP)
- Housing Improvement Program (HIP)
- Housing Opportunities for Persons with AIDS
- Supplemental Security Income (SSI)
- Weatherization Assistance Program (WAP)*
- Special Supplemental Nutrition Program for Women, Infants, and Children (WIC)**
- Verified government or non-profit program serving Asset Limited Income Constrained Employed (ALICE)
*Only if household is located in an area where 80% AMI is greater than 200% Federal Poverty Level
**Only if household is located in an area where 80% AMI is greater than 185% Federal Poverty Level - Tenants of multifamily buildings participate in one of the below programs are eligible for rebates with their building owner’s permission:
- Renters residing in Public Housing (single- and multifamily buildings owned and operated by Public Housing Authorities)
- Renters residing in units subsidized by project-based assistance (Section 8, Section 202, Section 811)
- Renters receiving tenant-based assistance (Housing Choice Vouchers)
- Renters residing in units that are income-restricted due to Low Income Housing Tax Credits (LIHTC)
Categorical Eligibility for Multifamily Buildings:
Public Housing (housing owned and operated by Public Housing Authorities): Single- and multifamily buildings owned and operated by Public Housing Authorities are fully eligible.Multifamily buildings that are part of one of the programs below may qualify for whole-building eligibility of 50% of the units meet the income requirements.
- Privately owned multifamily buildings receiving project-based assistance (Section 8, Section 202, Section 811)
- Privately owned multifamily buildings that house residents receiving tenant-based assistance (e.g., Housing Choice Vouchers)
- Low Income Housing Tax Credits (LIHTC)
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Are rebates available for new construction?
New construction is not eligible for the Home Energy Rebates Program.
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I am a contractor interested in participating in the program. How can I enroll?
Information about contractor participation in the program, including enrollment, is available at our Contractors and the Home Energy Rebates Program page. Contractors can also: