Heat pump $4,000 to $5,000

Lansing Board of Water & Light Home Rebates

The Lansing Board of Water & Light, called BWL, is Lansing's own electric company. Its 2026 rebates are some of the largest in Michigan for homes that switch from gas to electric, led by $4,000 to $5,000 for a central heat pump. BWL runs the program through Hometown Energy Savers. We read its pages and its 2026 application on October 6, 2026.

What BWL offers in 2026

Each card names the fact we keep on file. You must be a BWL residential electric customer. Funds are limited, and applications after December 31, 2026 are not accepted.

Open

Central heat pump replacing a gas furnace

$4,000 or $5,000

$4,000 when replacing a gas furnace and central air conditioner, $5,000 for the furnace only. Needs a Manual J report, a pre-inspection, and 15.2+ SEER2 and 7.8+ HSPF2 ratings.

Check first

Heat pump water heater

$500 to $1,000

The electrification page says $1,000 and the 2026 application says $500. Confirm with BWL.

Open

Heat pump clothes dryer and induction cooktop

$300 each

One rebate per residential account for each item. The dryer must be ENERGY STAR certified and the cooktop needs at least three elements.

Open

Smart thermostat

$50

For a system with central air or electric heat. One per account.

Open

Insulation and air sealing

$100 each, $50 air sealing

Attic (R-49), wall (R-7) and basement wall (R-20), each with a minimum area. Air sealing needs 30% less leakage.

Check first

Per-unit heat pump amounts on the 2026 form

$200 to $600

The form also lists central heat pump amounts by rating and mini-splits at $300, or $500 when replacing electric resistance heat.

Closed

Federal 25C and 25D tax credits

Ended

The federal home energy credits ended for work finished after December 31, 2025.

Who BWL serves

BWL is a municipal utility that sells electricity in Lansing and nearby areas. Its rebates are for its residential electric customers. Your electric bill shows whether BWL is your company. If it is not, look at Consumers Energy or another utility for your area.

Why the heat pump rebate is unusual

The Census Bureau's American Community Survey (2020 to 2024) says utility gas heats 74.6% of Lansing homes and electricity 21.0%. BWL's biggest rebate is aimed at the gas homes, since it applies when a central heat pump replaces a gas furnace. Most utilities pay for heat pumps only when they replace electric heat. BWL's page says you need a Manual J sizing report and a pre-inspection through Hometown Energy Savers at (800) 573-3503.

Two sources, two sets of amounts

BWL's electrification page and its 2026 rebate application both list heat pump and water heater amounts, and they differ. We show both and mark them as needing a check. The safest path is to ask BWL by email which table applies to your job, and keep the answer.

The paperwork

BWL asks you to apply by email, fax or mail within 90 days of buying and no later than December 31, 2026. Receipts must show the equipment type, make, model, price and date. For insulation, the invoice needs the type, the installed R-value and the square feet. BWL says to allow four to six weeks for a check.

Consumers Energy for gas work

If you also buy gas from Consumers Energy, its furnace and insulation rebates are separate. A gas furnace rebate from Consumers does not fit a job that removes the furnace, so plan which program you want before the contractor starts.

How to claim BWL rebates

  1. Confirm BWL is your electric company.
  2. For a heat pump, call (800) 573-3503 to schedule the pre-inspection first.
  3. Get a quote with a Manual J report and the required ratings.
  4. Save the invoice, model number and AHRI certificate.
  5. Send BWL's 2026 application with receipts by December 31, 2026.

Our pages for Lansing Board of Water & Light customers

Guides

Common questions

How much does BWL pay for a heat pump?

$4,000 for a central heat pump that replaces a gas furnace and central air conditioner, and $5,000 for a gas furnace only.

Do I need an inspection?

Yes. BWL's electrification page requires a Manual J report and a pre-inspection through Hometown Energy Savers.

What is the deadline?

BWL's 2026 application does not accept applications after December 31, 2026.

Which water heater amount is right?

BWL shows $1,000 on one page and $500 on another. Ask BWL, and keep the reply.

Does the federal tax credit apply?

No. It ended for work finished after December 31, 2025.

By Sam Menard. Sources, last read October 6, 2026: Lansing BWL: electrification programs, Lansing BWL: 2026 residential rebate application, Lansing BWL: save money and energy, IRS: residential clean energy credit. All rebate programs →

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