Michigan - Residential Energy-Efficient Appliance Rebate Program (Heating and Water Heating)

September 28, 2010


Note: Under the American Recovery and Reinvestment Act of 2009, the U.S. Department of Energy (DOE) is providing a total of $300 million to U.S. states, U.S. territories and the District of Columbia to establish rebate programs for new energy-efficient appliances that replace existing appliances. Each state and territory has designed its own program. Rebates will be available until the state or territory program's funding is exhausted. Be sure to confirm that rebate funds are still available in your state or territory before making purchasing decisions. Michigan is offering rebates for the purchase of certain energy-efficient appliances by state residents. The list of eligible measures includes propane or oil furnaces, natural gas furnaces, propane water heaters, natural gas water heaters and solar water heaters. Rebate amounts vary from $300 for water heaters, to $650 for qualifying furnaces, and to 25% of the system cost up to $2,500 for solar water heaters. The program goals, as reflected in the details of the program, are to complement existing utility programs by offering rebates for appliances not covered by such programs, to reach rural areas not served by existing utility natural gas programs, and to support the growth of a marketplace for appliances that exceed federal Energy Star standards. In order to qualify for a rebate, solar water heaters, propane or oil furnaces and propane water heaters must be purchased on or after February 10, 2010. Natural gas furnaces and water heaters must be purchased on or after August 1, 2010. All equipment must meet certain minimum energy-efficiency requirements which are specified on the program web site. In general, equipment must be Energy Star rated in order to qualify for a rebate, although in some cases higher efficiency levels are required. As noted above, because appliances must replace existing appliances, appliances installed as part of new construction are not eligible for this rebate program. Residents may only receive one rebate per appliance type. Rebates can be reserved on-line or over the phone. For further information on rebates for furnaces and water heaters, visit the web site listed at the top of this page or call 1-888-MICHNRG (1-888-642-4674). For further information on rebates for refrigerators, clothes washers, and dishwashers, click here.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: Michigan
Incentive Type: Rebate Program
Web Site: http://www.michiganenergyoptions.org/programs/mi-appliance-rebate
Administrator: Michigan Energy Options
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Water Heaters
  • Furnaces
Incentive Amount: Solar water heater: 25% of cost
Furnaces (propane or oil): $500
Furnaces (natural gas): $500
Furnaces with ECM (natural gas): $650
Water Heaters (propane): $300
Water Heaters (natural gas): $300
Maximum Incentive: Solar water heater: $2,500
Equipment Requirements: Equipment must meet minimum efficiency requirements
Installation Requirements: Equipment must replace an existing appliance of the same type
Ownership of Renewable Energy Credits: Not specified

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.