What A2ZERO pays in 2026
Each card shows the standard amount and, in brackets, the income-qualified amount. The city says rebates cannot exceed 90% of the measure or project cost. The card facts name the date we read the city page.
Cold climate heat pump
Listed on the NEEP cold climate list with 15.2+ SEER2 and 8+ HSPF2. Dual-fuel systems are not eligible. Manual J and AHRI certificate required.
Ductwork changes
Existing ductwork only, with a static pressure test after install.
Heat pump water heater
UEF of 2.0 or higher. Contractor installed.
Electrical panel
Main panel of 200 amps or more, or a sub-panel. Not for new construction.
Battery storage
At least 13 kWh and contractor installed.
Insulation and air sealing
Air sealing needs blower door tests before and after with at least 20% less leakage. The city lists combined bonuses too.
Induction cooktop and heat pump dryer
Income-qualified amounts are $750 and $500.
Federal 25C and 25D tax credits
The federal home energy credits ended for work finished after December 31, 2025.
Who can apply
You can own or rent a residential property in the City of Ann Arbor. The equipment must be installed at that property, the applicant must be 18 or older, and the work must be a retrofit of an existing building. Renters should have the landlord's written approval. The higher amounts are for households at or below 120% of area median income, which the city lists as $116,200 for one person and $166,000 for four.
How the process works
First verify your income, if you want the higher amount. That takes up to 10 business days. Then reserve the funds, which also takes up to 10 business days. After approval you have 90 days to finish the project. Then send the full application. The city says a check arrives in six to eight weeks. You can apply online, or by mail, email or fax.
How big is the pot
The city says it set aside about $1.9 million from its 2022 Community Climate Action Millage, and about half is for income-qualified households. That is a limited pool. If funds run out, reservations stop. Check the city page and reserve early.
Ann Arbor homes
The Census Bureau's American Community Survey (2020 to 2024) counts 54,399 housing units in Ann Arbor. Renters are 54.5% of households. Electricity heats 26.1% of homes and utility gas heats 70.7%. Because the city's rebate is not limited to electric heat, it can matter to a gas home that wants to switch.
Beyond home upgrades
The city also pays rebates for e-bikes, electric yard care equipment and electric vehicles. Its page said on August 17, 2026 that all vehicle rebates were reserved, with a waiting list. We cover home energy here.
How to reserve an A2ZERO rebate
- Read the technical rules for your measure on the city page.
- Verify your income if you may qualify for the higher amount.
- Reserve funds before you buy, and wait for approval.
- Complete the work within 90 days.
- Send the full application and expect a check in six to eight weeks.
Our pages for Ann Arbor A2ZERO customers
- Ann Arbor: city and DTE offers.
- Ann Arbor heat pumps: the $4,000 rebate and its rules.
- Ann Arbor insulation: city and DTE bonuses.
Guides
- DTE Energy rebates
- Free weatherization in Michigan
- Michigan water heater rebates
- Michigan rebates overview
Common questions
How much is the Ann Arbor heat pump rebate?
$4,000, or $5,500 for households at or below 120% of area median income.
Can renters apply?
Yes. The city says you can own or rent a residential property in Ann Arbor.
Do I have to reserve funds first?
Yes. The city's steps start with reserving rebate funds, then buying, then finishing within 90 days of approval.
Does the rebate cover the whole cost?
No. Rebates may not exceed 90% of the measure or project cost.
Does the federal tax credit apply?
No. The federal credits ended for work finished after December 31, 2025.
By Sam Menard. Sources, last read October 6, 2026: City of Ann Arbor: A2ZERO rebates, City of Ann Arbor: home energy rebates, NEEP cold climate air source heat pump list, IRS: residential clean energy credit. All rebate programs →