Michigan Saves
Financing for home energy improvements through authorized lenders and contractors. A loan facilitator, not a rebate — it changes how you pay, not what you pay.
Program detailsMichigan home energy costs & incentives
The hardest case in this data: gas is clearly cheaper to run than a heat pump, and the main statewide program offers financing rather than rebates.
Prices pulled August 16, 2026
What energy costs here
20.01¢
per kWh, residential electricity
16% above the national average of 17.3¢. 13th most expensive of 51.
Up 14% since 2021 (3.3% a year), against 27% nationally.
$1.05
per therm, residential natural gas
$10.92 per thousand cubic feet, 2025 annual. National average $1.48/therm.
Up 19% since 2021 (4.3% a year).
Heat pump vs. gas furnace — Gas favored on running cost
Michigan's electricity-to-gas price ratio works out at 5.6-to-1. At these prices a gas furnace is likely cheaper to run through winter. A heat pump can still win on total cost if it replaces an aging air conditioner too, or if you have solar.
Below roughly 3.5-to-1 a heat pump usually wins on running cost; above roughly 5-to-1 a furnace may be cheaper through winter. How that comparison works · run it with these rates
State averages from the U.S. Energy Information Administration (electricity, gas), pulled 2026-08-16. Real bills vary substantially by utility within a state, and by rate plan within a utility — check a recent bill for your own numbers before relying on any of this. The heat pump verdict above follows from these averages, so it moves if your rates differ.
What's different in Michigan
Michigan Saves is the best-known statewide body, and it is worth understanding what it is before you count on it: a financing facilitator, not a rebate program. It connects homeowners with authorized lenders and vetted contractors for energy improvements, including lead abatement and septic loans. Useful for spreading a cost — but it does not reduce one.
Rebates in Michigan come from your individual utility rather than a statewide pot, so what you can get depends on who bills you. That makes checking your own utility's site a necessary step here rather than an optional one.
Michigan has one of the four least favorable electricity-to-gas ratios in the country. A heat pump will likely cost more to run than a gas furnace through a Michigan winter. That does not make it wrong — it replaces your air conditioner, and a cold-climate model handles the shoulder seasons efficiently — but anyone selling it to you purely as a way to cut your heating bill is not being straight with you.
Check with the administrator before you sign anything. Program budgets run out, terms change without notice, and most require approval before work starts — a rebate you apply for afterwards is usually a rebate you don't get. Treat this page as a starting point for your own call, not as confirmation that you qualify. We last checked these programs on August 16, 2026.
Michigan programs
The federal position — the same everywhere
- Residential Clean Energy Credit (Section 25D)Ended
Ended. No credit for expenditures made after 31 December 2025.
- Energy Efficient Home Improvement Credit (Section 25C)Ended
Ended. No credit for property placed in service after 31 December 2025.
Full detail, sources and changelog on the national incentive tracker.
Where to check for your address
- Michigan Saves
- DSIRE — search state, local and utility programs by ZIP
- ENERGY STAR Rebate Finder
- U.S. DOE — Home Energy Rebates, by state
Your own utility is worth checking separately — utility rebates are often the largest remaining incentive and rarely appear in any central listing.
Not tax advice
Everything here is general information gathered from public sources. It is not tax, financial or engineering advice, and it cannot account for your utility, your income, your equipment or your return. Energy prices are state averages that move; program terms and budgets change without notice. Confirm anything you plan to budget around directly with the program administrator, your utility and a licensed professional before you commit money.
If you find something on this page that is out of date, tell us at minchangyi@me.com and we will correct it.
Run the numbers for your house
These open with Michigan's average rates already filled in. Correct them from a recent bill before you rely on the result — state averages hide a lot of variation between utilities.
Guides behind these numbers
- Heat Pump vs. Gas Furnace: The Real 2026 Cost ComparisonUpfront cost, operating cost, and total cost of ownership for heat pumps vs. gas furnaces in 2026 — with the trade-offs most guides skip.HVAC · 6 min read
- Heat Pumps in Cold Climates: Do They Actually Work Below Freezing?Addressing the biggest myth about heat pumps — whether they still work in genuinely cold winters.HVAC · 2 min read
- Insulation vs. HVAC Upgrades: Which Should You Prioritize First?Before spending on a new HVAC system, it's often smarter to fix your home's envelope first. Here's how to decide the right order.HVAC · 3 min read
- The Gas-to-Heat-Pump Rebate Is Gone. The Electric-to-Heat-Pump One Isn't.DOE Program Notice 26-2 removed fuel switching from the HEAR rebates. Here's exactly what changed, who is still eligible, and what to do if your project is already underway.HVAC · 6 min read
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