What helps pay for a water heater in Michigan in 2026
Each card names the fact we keep on file. Where an official page shows no dollar amount, we say so instead of guessing.
Ann Arbor A2ZERO heat pump water heater
Needs a UEF rating of 2.0 or higher and contractor installation. For homes in the City of Ann Arbor.
Lansing BWL heat pump water heater
BWL's electrification page says $1,000 and its 2026 form says $500. ENERGY STAR certified. Ask BWL which applies.
DTE Energy instant discount
ENERGY STAR heat pump water heater (2.2 UEF or better) for electric customers, or ENERGY STAR gas models for gas customers. Funds are first come, first served.
Consumers Energy instant rebate
ENERGY STAR gas and gas tankless water heaters, and heat pump water heaters up to 55 gallons for electric customers, through a participating contractor.
State rebates (MiHER)
The state program lists water heaters. New income-qualified applications are paused in the Detroit, Warren, Grand Rapids, Lansing and Kalamazoo districts.
Federal 25C and 25D tax credits
The federal home energy credits ended for work finished after December 31, 2025.
Why we show no amount for DTE and Consumers
Both utilities say they give an instant discount through a participating contractor or retailer, and neither page prints a dollar figure. Sites that quote a number are quoting older or third-party figures. We will not print an amount we could not read on the official page. Ask the contractor for the discount in writing, with the model number, before you sign.
Heat pump or gas?
A heat pump water heater uses much less electricity than a regular electric tank. It can make sense in a gas home too, but running cost depends on your gas and electric prices. Ask your installer for a comparison based on your own bills. The rebates above are mostly aimed at electric units, and both DTE and Consumers also list gas models.
Ratings to check
DTE asks for an ENERGY STAR heat pump water heater with at least a 2.2 UEF rating. Consumers asks for more than 2.2 UEF and a size up to 55 gallons. Ann Arbor asks for 2.0 or higher. Lansing BWL asks for ENERGY STAR and, on one page, 3.0 UEF. UEF is a score for how efficient a water heater is. A higher score means lower running cost.
Free help for lower incomes
DTE's Energy Efficiency Assistance lists high efficiency water heaters among its free upgrades for households at or below 250% of the federal poverty level. Look at the free programs before you buy a heater yourself.
How to get a water heater rebate in Michigan
- Check which utility and which city you are in.
- If you are in Ann Arbor, reserve the city rebate before you buy.
- In Lansing, ask BWL which amount applies and keep the answer.
- For DTE and Consumers, use a participating contractor or the retail discount page.
- Keep the invoice, model number and specification sheet.
More for Michigan homes
- Michigan home rebates: every program in one place
- Detroit home rebates: DTE Energy offers for Detroit homes
- Grand Rapids home rebates: Consumers Energy offers
- Ann Arbor home rebates: the city's A2ZERO program and DTE
- Lansing home rebates: Board of Water & Light and Consumers
- Free weatherization and low-income help: no-cost upgrades
- Smart thermostat rebates: the small rebate that is easy to claim
Common questions
Is there a statewide water heater rebate in Michigan?
Not a utility one. Michigan's MiHER program lists water heaters, but new income-qualified applications are paused in five districts.
How much is the Ann Arbor water heater rebate?
$1,000, or $2,000 for households at or below 120% of area median income, for a heat pump water heater with a UEF of 2.0 or higher.
Does Lansing BWL pay $500 or $1,000?
BWL's electrification page says $1,000 and its 2026 form says $500. Confirm with BWL before you buy.
Does the federal tax credit still apply?
No. It ended for work finished after December 31, 2025.
Who pays for installation?
You pay the contractor. The rebate or instant discount lowers the cost.
By Sam Menard. Sources, last read October 6, 2026: City of Ann Arbor: A2ZERO rebates, Lansing BWL: electrification programs, DTE Energy: water heaters, Consumers Energy: water heating.