What heat pump rebates pay in Lansing
BWL allows one rebate per residential account. The page we read did not show an end date. The 2026 application form is for equipment installed by December 31, 2026.
Heat pump replacing a gas furnace and central air conditioner
A central air source heat pump with 15.2 or higher SEER2 and 7.8 or higher HSPF2. Needs a Manual J report and a pre-inspection.
Heat pump replacing a gas furnace only
Same ratings and paperwork. The larger amount is for homes that keep an existing air conditioner and replace only the furnace.
Per-unit amounts on the 2026 form
BWL's application form also lists central heat pump amounts by SEER2 rating and mini-splits at $300, or $500 when replacing electric resistance heat. Ask BWL which one applies to your job.
Consumers Energy heat pump
Consumers' rebates are for electric customers, so they do not fit a home that buys power from BWL.
State rebates (MiHER)
New income-qualified applications are paused in the Lansing district.
Federal 25C and 25D tax credits
The federal home energy credits ended for work finished after December 31, 2025. A quote that counts on them is out of date.
The two big steps
BWL's page says you need a Manual J sizing report and a pre-inspection through its program partner, Hometown Energy Savers. Call (800) 573-3503 before you sign a contract. BWL's page lists the pre-inspection as a requirement, so do it first.
Who in Lansing fits
The Census Bureau's American Community Survey (2020 to 2024) says utility gas heats 74.6% of Lansing homes and electricity heats 21.0%. The gas group is who the $4,000 to $5,000 rebate was written for. That makes Lansing unusual among our four Michigan cities, since DTE and Consumers pay little or nothing for a gas-to-heat-pump switch.
Check your electric company
The rebate is only for BWL residential electric customers. If your home is just outside the BWL service area, the Consumers Energy chart applies instead, and its heat pump rebates are small. Your electric bill shows the company name.
Think about backup heat
Ask each installer how the system will perform on the coldest nights, and whether to keep the gas furnace as a backup. If you replace the furnace outright, the $5,000 amount applies. Keeping the furnace may not fit the rule, so ask BWL in writing first.
Savings depend on rates
A heat pump moves heat instead of making it, so it uses less energy than electric heat. Whether it beats gas on your bill depends on the electric and gas prices you pay. Ask your installer for an estimate that uses your own bills from last winter. The rebate lowers the upfront cost but does not change the running cost.
How to claim a BWL heat pump rebate
- Confirm that BWL is your electric company and that you heat with a gas furnace today.
- Call Hometown Energy Savers at (800) 573-3503 to set up the pre-inspection.
- Get a quote with a Manual J report and equipment that meets BWL's ratings.
- Install the system, and keep the invoice and the AHRI certificate.
- Send the application with receipts by December 31, 2026, ideally within 90 days of install.
Common questions
How much does BWL pay for a heat pump?
$4,000 or $5,000 for a central heat pump replacing a gas furnace, depending on whether you also replace central air conditioning.
Does a mini-split qualify?
BWL's application form lists mini-splits at $300, or $500 when replacing electric resistance heat. The $4,000 to $5,000 amounts are for central systems.
Is a pre-inspection required?
Yes, on BWL's electrification page. It goes through Hometown Energy Savers.
Can I get the state rebate too?
New income-qualified applications are paused in the Lansing district. The state says rebates can often be combined with utility rebates where permitted.
Does the federal heat pump credit still apply?
No. It ended for work finished after December 31, 2025.
What to do next
Back to the Lansing rebate guide. A heat pump water heater is next on BWL's list, see the Lansing water heater guide. In Grand Rapids, Consumers pays far less for the same switch, and in Detroit DTE pays only electric homes.
By Sam Menard. Sources, last read October 6, 2026: Lansing BWL: electrification programs, Lansing BWL: 2026 residential rebate application, Consumers Energy: 2026 qualifying measures, IRS: residential clean energy credit, US Census Bureau, ACS 5-year estimates 2020-2024 (heating fuel). All Lansing rebates → Every Lansing BWL rebate →