BWL heat pump: $4,000 to $5,000

Home Energy Rebates in Lansing

Lansing has its own electric company, the Board of Water & Light, and it pays more for a heat pump than any big Michigan utility we read. BWL gives $4,000 to $5,000 to customers who replace a gas furnace with a central heat pump. Gas customers can also claim Consumers Energy rebates. We read both on October 6, 2026. Check your bills to see who serves your home.

What is open for Lansing homes in 2026

Each card names the fact we keep on file. BWL amounts come from its electrification page and its 2026 rebate application. Consumers Energy amounts come from its own charts.

Open

BWL heat pump replacing a gas furnace

$4,000 or $5,000

$4,000 when you replace a gas furnace and central air conditioner, $5,000 when you replace the furnace only. Needs a Manual J report and a BWL pre-inspection.

Check first

BWL heat pump water heater

$500 to $1,000

BWL's electrification page says $1,000. Its 2026 application form says $500. Confirm the amount with BWL before you buy.

Open

BWL smart thermostat

$50

One per account, for an HVAC system with central air or electric heat.

Open

BWL insulation

$100 each

Basement wall, attic and wall insulation, plus $50 for cutting air leakage by 30%. For electric customers with central air or electric heat.

Open

Consumers Energy insulation

$50 to $200

For Lansing homes that buy gas from Consumers. Attic rebates rise with R-value.

Paused

State home energy rebates (MiHER)

Paused here

New income-qualified applications are on hold in the Lansing district.

Open

State weatherization

Free

For households at or below 200% of the federal poverty level.

Open

Michigan Saves loan

6.24% to 6.99% APR

A fixed-rate credit union loan for heat pumps and insulation.

Closed

Federal 25C and 25D tax credits

Ended

The federal home energy credits ended for work finished after December 31, 2025. A quote that counts on them is out of date.

How Lansing heats its homes

The Census Bureau's American Community Survey (2020 to 2024) counts 55,943 housing units in Lansing. Utility gas heats 74.6% of homes and electricity heats 21.0%. Bottled gas is 2.1%. That gas majority is the reason BWL's gas-to-heat-pump rebate matters. It was written for homes that burn gas today but pay BWL for electricity.

Older homes

79.5% of Lansing homes were built before 1980, and 24.5% before 1940. Only 7.6% date from 2000 or later. Detached houses are 61.9% of homes and renters are 46.2% of households. As with other cities, a rental needs a landlord's approval before the work.

Two companies, two sets of rules

BWL sells electricity, and its rebates need you to be a BWL electric customer. Many Lansing homes buy natural gas from Consumers Energy, and its rebates need a Consumers account for the service you are claiming. Your bill tells you which company you pay for each service. A gas furnace rebate comes from Consumers. A heat pump rebate comes from BWL.

The state program is paused here

Michigan's MiHER program can cover up to the full cost for lower-income households, with caps of $14,000 for electric equipment and $20,000 for whole-home efficiency. Its page says new income-qualified applications are temporarily unavailable in the Lansing district and four others. Check your county and the state page again before you plan around it.

Every rebate guide for Lansing

What to do in Lansing

  1. Look at your bills. Note whether BWL or another company sells you electricity.
  2. If BWL is your electric company and you heat with gas, call Hometown Energy Savers at (800) 573-3503 to ask about the pre-inspection for a heat pump.
  3. Get quotes with a written Manual J sizing report.
  4. For insulation or a furnace on gas, ask your contractor about Consumers Energy's rebates.
  5. Keep every invoice. BWL applications are due by December 31, 2026, and BWL suggests applying within 90 days.

Common questions

How much does BWL pay for a heat pump?

$4,000 if you replace a gas furnace and central air conditioner, and $5,000 if you replace the furnace only, on BWL's electrification page.

Do I need to be a BWL electric customer?

Yes. BWL's rebates are for its residential electric customers.

Can I get a Consumers Energy rebate too?

Yes, for natural gas furnace and insulation work, if Consumers is your gas company. Each company has its own rules.

Is the state program open in Lansing?

New income-qualified applications are paused in the Lansing district as of October 6, 2026.

Does the federal tax credit still apply?

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

What to do next

Read the Lansing heat pump guide, the Lansing water heater guide or the Lansing insulation guide. See all of BWL's offers on our Lansing BWL page.

By Sam Menard. Sources, last read October 6, 2026: Lansing BWL: electrification programs, Lansing BWL: 2026 residential rebate application, Consumers Energy: windows and insulation, Michigan EGLE: Home Energy Rebates, US Census Bureau, ACS 5-year estimates 2020-2024 (heating fuel). All Lansing rebates → Every Lansing BWL rebate →

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