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Making calculated decisions about personal climate action
June 14, 2024
If you’re like many Michiganders, you’ve thought about installing energy-efficient appliances and technology in your home and wondered about programs to offset the up-front costs. Rewiring America has answers.
Electric vehicles are among the energy-efficient technologies Michigan residents can explore through Rewiring America’s incentives calculator.
The Washington, D.C.-based nonprofit has launched a Michigan-specific calculator to help homeowners and renters estimate how much they can save with clean energy incentives and tax credits created by the Biden-Harris Administration’s historic Inflation Reduction Act (IRA) and other state, local, and utility programs. The programs cover heat pumps, heat pump water heaters, induction stoves, electric vehicles (EV), EV chargers, and other zero-emissions technologies.
The Michigan Energy Efficient Upgrade Savings Calculator is accessible through a link from the Michigan Department of Environment, Great Lakes, and Energy’s (EGLE) website. Michigan is part of the first cohort of states with a custom version of the Rewiring America calculator that incorporates state and local incentives.
To use the calculator, Michigan residents need only input a few details about their households. The calculator will produce personalized estimates of how much they can save on efficient electric appliances and energy-saving technologies. It includes links for further information.
Rewiring America estimates that on average, U.S. households can receive $10,600 in federal incentives to help convert from fossil fuel-powered appliances and technology to electric-powered replacements that in turn can save households an average of $2,000 a year on energy bills.
How would you fare? It’s quick and easy to try the calculator for yourself, but here are few hypothetical scenarios for households around the state:
Ann Arbor
- Homeowner/renter: Renter
- Electric utility: DTE Energy
- Household size: Four
- Tax filing: Head of household
- Income: $130,000
If you were considering transportation options as this renter, you would be eligible for a $1,500 rebate off a new EV and $500 off an EV charger through DTE Energy programs. You also would qualify for up to $7,500 off the price of a new electric vehicle through the federal Clean Vehicle Credit.
Detroit
- ZIP code: 48201
- Homeowner/renter: Renter
- Electric utility: City of Detroit
- Household size: Two
- Tax filing: Married, filing separately
- Income: $75,000
Under federal Home Electrification and Appliance Rebates (HEAR) anticipated this year or next, you would qualify for a discount of up to $8,000 on a heat pump, although rebates will be implemented differently in each state. You also would qualify for a federal Clean Vehicle Credit of up to $7,500 to purchase a new EV and a federal Alternative Fuel Vehicle Refueling Property Tax Credit of up to $1,000 for EV chargers, available in rural or low-income communities.
Goodrich
- ZIP code: 48438
- Homeowner/renter: Homeowner
- Electric utility: DTE Energy
- Household size: Four
- Tax filing: Married, filing jointly
- Household income: $80,000
If you were this homeowner, you’d qualify for either $1,000 off a ductless heat pump, up to $850 off an air source heat pump, or $800 off geothermal heating installation through DTE incentives. You also would qualify for the federal RCEC of 30% up to $2,000 for geothermal heating installation or an air source heat pump. And you also may qualify through HEAR for a heat pump once the programs roll out in Michigan.
Grand Rapids
- ZIP code: 49501
- Homeowner/renter: Homeowner
- Electric utility: Consumers Energy
- Household size: Four
- Tax filing: Married, filing jointly
- Income: $100,000
Considering solar power? You would qualify for a 30% federal Residential Clean Energy Credit (RCEC) for residential solar (uncapped, average $4,600) or solar panel upgrade. Bonuses of 10%-20% may be available for community or leased solar in low-income areas.
Kalkaska
- Homeowner/renter: Renter
- Electric utility: Consumers Energy
- Household size: Two
- Tax filing: Single
- Income: $30,000
You would be eligible for a Clean Vehicle Credit of $7,500 off a new electric vehicle or a 30% tax credit worth up to $4,000 toward a used electric vehicle through the federal Credit for Previously Owned Clean Vehicles, as well as $1,000 off an EV charger through the federal Alternative Fuel Vehicle Refueling Property Credit, available in rural or low-income communities.
Marquette
- Homeowner/renter: Homeowner
- Electric utility: Upper Peninsula Power Co. (UPPCO)
- Household size: One
- Tax filing: Single
- Income: $50,000
You would qualify for $300 per ton off an air source heat pump and up to $600 off a heat pump water heater through UPPCO Heat Pump rebates. You’d also qualify for the RCEC of 30% up to $2,000 for an air source geothermal heat pump and/or heat pump water heater, a 30% federal Energy Efficient Home Improvement Credit (EEHIC) for up to $1,200 off weatherization, and $150 off the cost of an energy audit.
Wayland
- ZIP code: 49348
- Homeowner/renter: Homeowner
- Electric utility: Great Lakes Energy Cooperative
- Household size: Three
- Tax filing: Married, filing jointly
- Household income: $60,000
You would qualify for a $1,200 rebate off a heat pump water heater or $100 off an electric resistance (non-heat pump) water heater from Great Lakes Energy’s Energy Wise program. You also would qualify for the RCEC of 30% up to $2,000 for a heat pump water heater and may qualify for a rebate on a heat pump water heater once the federal HEAR program rolls out in Michigan.
Governor Gretchen Whitmer demonstrated the online tool at its official launch June 10 during the Clean Economy and Community Impact Summit.
“If we face climate change with climate action, we can lower costs, create jobs, and make more American energy using American workers,” the Governor said. “The new Rewiring America calculator will show Michigan families how much they can save using incentives from the Biden-Harris administration’s clean energy programs. You can save money on your next home upgrade, whether it’s a furnace, water heater, stove, rooftop solar, or so much more. You can drive down your monthly bill by up to 20%, better protect the air your kids breathe, and support jobs and investment in your local community. I urge every Michigander to take advantage of these cost-saving programs and improve your quality of life.”
For more information on clean energy and climate-related federal funding opportunities, visit EGLE’s climate and energy funding opportunities webpage.