Rising demand for residential energy upgrades is creating additional work for contractors involved in HVAC, electrical, insulation and building-performance improvements. Michigan’s Home Energy Rebates program is directing federal funding toward those upgrades while expanding opportunities for qualified contractors across the state.
Administered by the Michigan Department of Environment, Great Lakes, and Energy, the Michigan Home Energy Rebates, or MiHER, program provides financial assistance for residential efficiency and electrification projects.
MiHER operates through two funding pathways with more than $105 million allocated to each program.
The Home Efficiency Rebates program, known as HOMES, supports whole-home improvements including insulation, air sealing, heating and cooling upgrades and other measures that lower energy consumption. Rebate amounts are tied to the projected energy savings associated with qualifying projects.
The Home Electrification and Appliance Rebates program, or HEAR, supports high-efficiency electric equipment and related electrical work. Eligible improvements include heat pumps, heat pump water heaters, electric cooking equipment, electrical panels and wiring. HEAR is available to households with incomes up to 150% of area median income.
The statewide program is targeting approximately 15,000 homes. Funding is being distributed across 10 districts, with allocations adjusted to account for the concentration of lower-income households and energy burden in each region.
The Marquette district, which covers Michigan’s Upper Peninsula, has recorded approximately 400 approved homeowner participants. Of those projects, 90 are underway and 40 have been completed. More than $595,000 in combined HOMES and HEAR rebates has been distributed in the district.
Participation has progressed differently across Michigan. The Detroit district is temporarily pausing approvals for certain single-family projects as participation approaches the available funding limit. Applications already submitted continue to be processed, while income-qualified applications are expected to reopen when additional capacity becomes available.
For contractors, the program provides work opportunities across several residential construction trades. Participating contractors conduct home assessments, identify qualifying improvements and perform the associated upgrades. Contractors already working in other Michigan energy-efficiency programs may meet many of the requirements for MiHER participation.
The program also allows homeowners to avoid paying the covered rebate amount upfront. A prequalified contractor completes the assessment and eligible improvements and receives the applicable rebate.
MiHER links public energy funding with residential construction activity involving HVAC, electrical and building-envelope upgrades. For contractors, participation can create access to projects financed through a structured rebate program, while owners and developers involved in residential improvements can use the program to offset qualifying upgrade costs.
The program's regional funding structure also means project availability varies by location and household eligibility. Contractors evaluating participation need to account for district funding capacity, program requirements and the specific improvements eligible for rebates.
Source: Michigan Govt.
