Save Money on Energy Bills Through Michigan MiHER Program

LANSING – How to save money on energy bills through the Michigan MiHER Program? Well, Michigan home energy rebates programs to serve Michigan households. The Michigan Department of Environment, Great Lakes, and Energy (EGLE) recently announced a milestone in the rollout of Michigan’s Home Energy Rebates (MiHER) programs.

Supported by the Biden-Harris Administration’s Inflation Reduction Act (IRA), MiHER will help Michigan households save thousands of dollars on energy expenses through home energy improvements and new, efficient appliances.

1. How Much Can You Save With MiHER Program in Michigan?

“The Michigan Home Energy Rebates programs will lower energy costs for Michiganders,”

said Governor Gretchen Whitmer. Moreover,

“Thanks to the Biden-Harris Administration and our hardworking congressional delegation, we have federal resources available to help families upgrade their homes with more energy-efficient appliances. As a result, this will help them stay cool in the summer and warm in the winter while saving working families up to $34,000. Therefore, let’s keep working together to make a real difference in people’s lives by lowering their upfront home energy upgrade costs and saving them money on their bills in the long run.”

2. How Michigan is Leading in Energy Efficiency Initiatives?

Today marks the official launch of the Michigan Home Energy Rebates (MiHER) program, beginning with a pilot involving 50 households in Marquette County and Holland. This initiative is a collaborative effort between the Upper Peninsula Power Company, SEMCO ENERGY Gas Company, and the Holland Board of Public Works, in partnership with the Michigan Department of Environment, Great Lakes, and Energy (EGLE).

Notably, this pilot program aims to test the effectiveness of MiHER’s two components, ensuring a successful full-scale rollout in the future. As a result, Michigan proudly becomes the first state in the Midwest to implement both components of the Home Energy Rebates program. Hence, setting the stage for upgraded energy efficiency and savings for residents.

3. Eligibility Criteria for the MiHER Program:

MiHER is set to launch statewide in early 2025. Specifically, the two component programs described below will serve up to 15,000 households across the state. These two rebate options cover both single and multi-family homes and target energy efficiency and electrification upgrades. Furthermore, Michigan renters and homeowners interested in the programs can learn more on EGLE’s MiHER webpage.

I. Home Efficiency Rebates (HER):

A total of $105.7 million in Home Efficiency Rebates (HER) will provide funding aimed at lowering the upfront costs of whole-home energy efficiency upgrades, such as insulation, air sealing, heating, and cooling. Specifically, HER covers rebates for energy efficiency upgrades that can save between 15-20% of a home’s energy use. Moreover, households are eligible for rebates of up to $20,000.

II. Home Electrification and Appliance Rebates (HEAR):

$105.3 million in Home Electrification and Appliance Rebates (HEAR) will help reduce the upfront costs of efficient electric technologies by providing rebates for high-efficiency home appliances and equipment.

For instance, among the maximum rebates available, households can receive $840 for an electric stove or dryer, $1,750 for a heat pump water heater, $1,600 for insulation, air sealing, and ventilation, $2,500 for electric wiring upgrades, and $8,000 for a heat pump used for heating or cooling. Additionally, households are eligible for up to $14,000 in total rebates.

4. Key Benefits of Michigan MiHER Program:

“Michigan’s Home Energy Rebates programs will provide families with thousands of dollars to assist them in upgrading their homes, purchasing efficient appliances, and reducing their energy costs,”

stated EGLE Director Phil Roos.

“Furthermore, these programs align with the goals of the MI Healthy Climate Plan and will contribute to the growth of the state’s booming clean energy economy. EGLE is excited to pilot these programs in Holland and Marquette County, with plans to launch them statewide early next year. Additionally, we encourage contractors to sign up now to help us implement these programs effectively.”

5. Types of Upgrades Qualifying for Michigan Energy Rebates:

Across the two programs, households are eligible for up to $34,000 in rebates. While all Michigan households—whether homeowners or renters—are encouraged to pursue energy efficiency upgrades, MiHER will specifically prioritize those households with greater energy savings opportunities.

This includes families with incomes at or below 80% of their county’s Area Median Income (AMI), as well as residents participating in other federal assistance programs.

6. How to Apply for Michigan’s MiHER Program?

Eligible households across the state may apply through the MiHER webpage once the full programs launch in 2025. Additionally, households earning more than 150% of the Area Median Income (AMI) are encouraged to explore energy efficiency and electrification upgrades in order to benefit from the Home Energy Tax Credit.

Furthermore, Michigan households can discover the clean energy incentives available to them—federal, state, local, and utility—by using the Michigan Energy Efficient Upgrade Savings Calculator. Ultimately though, there are many different free tax tools available that Michigan residents might find useful when factoring tax credits into their overall tax liability.

7. MiHER Program Contribution to Clean Energy Job Growth in Michigan:

EGLE’s Materials Management Division will administer MiHER in collaboration with partners CLEAResult and Walker-Miller Energy Services. Notably, CLEAResult is North America’s largest provider of energy efficiency, energy transition, and energy sustainability services. Meanwhile, Walker-Miller Energy Services, based in Detroit, stands out as one of the largest African American- and woman-owned energy efficiency companies in the U.S.

Furthermore, the department is developing a network of prequalified contractors who will work under the programs. This initiative not only offers rebates to eligible households but also supports the growth of clean energy jobs in communities throughout the state.

8. Benefits for Contractors Involved in the MiHER Initiative:

Contractors will play an integral role in the success of MiHER by enrolling families, assessing homes, conducting energy upgrades, and capturing energy savings. In addition, contractors are eligible to receive bonuses for qualified projects in eligible communities. Therefore, contractors are encouraged to sign up now to learn more about program requirements and how to become prequalified to participate in MiHER.

“The Michigan Home Energy Rebates program is a triple win! It will not only help contractors and small businesses grow, but it also benefits Michigan residents by reducing their energy consumption and costs, while simultaneously helping to reduce carbon emissions and combat climate change,”

said Brynn Cooksey, owner and general manager of Air Doctors Heating and Cooling.

9. Federal Funding Michigan Received for the MiHER Initiative:

Governor Whitmer announced MiHER in May, highlighting Michigan’s national leadership in securing federal funding for climate and clean energy initiatives. Specifically, Michigan received $211 million for MiHER through the Inflation Reduction Act (IRA), which authorized the U.S. Department of Energy to establish Home Energy Rebates on a national scale. As a result, this initiative is expected to save households up to $1 billion annually on energy bills while supporting more than 50,000 jobs across the U.S.

10. How Will Michigan’s Home Energy Rebates Help Families This Winter?

“With winter approaching, we are excited that Michiganders can start taking advantage of these rebate programs,” said Keishaa Austin, principal deputy director in the Department of Energy’s Office of State and Community Energy Programs. “By making home heating, insulation, weatherization, and other upgrades more affordable, these programs will not only help people stay warm but also enable them to save hundreds to thousands of dollars in the process.”

Moreover, upgrading appliances can significantly lower costs for families, as 86% of the energy used in a home is consumed by heating and cooling spaces, boiling water, cooking, and refrigeration.

Additionally, these upgrades align with the goals of the MI Healthy Climate Plan (MHCP), which serves as the state’s roadmap to carbon neutrality. The MHCP includes recommendations to reduce emissions from homes and businesses by 17% by 2030, increase access to clean financing opportunities, provide incentives for efficient appliances, and more.

Verdict:

This post offers tips on how to save money on energy bills through the Michigan MiHER Program, which is an incredible opportunity for families to enhance their homes while saving significantly on energy costs. With substantial funding and a focus on energy efficiency, this initiative not only supports individual households but also contributes to the state’s broader goals of sustainability and climate action.

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FAQs

What are the maximum rebate amounts available through MiHER?

Households can receive up to $20,000 in rebates for whole-home energy efficiency upgrades and up to $14,000 for home electrification and appliance rebates.

How do energy efficiency upgrades help reduce costs?

Upgrades can lower energy consumption significantly—up to 20%—resulting in substantial savings on monthly utility bills, especially during peak heating and cooling seasons.