Rebates

Michigan HB 4465, effective 11/15/2019, reinstates the property tax exemption for alternative energy systems (AES) that was in effect from 2002 until to 2012. The summary of SB 1316, the original tax exemption bill, can be found below. 
"Alternative energy personal property" certified by the NextEnergy Authority and located in the NextEnergy Zone is exempt from the collection of personal property taxes. This exemption includes (1) "alternative energy systems," (2) "alternative energy vehicles," (3) the personal property of an "alternative energy technology business" and (4) the personal property of a business not engaged in alternative-energy technology that is

Much of the information presented in this summary is drawn from the U.S. Department of Energy’s (DOE) Building Energy Codes Program and the Building Codes Assistance Project (BCAP). For more detailed information about building energy codes, visit the DOE and BCAP web sites.

The Bureau of Construction Codes is responsible for the administration of the State Construction Code Act (1972 PA 230), also known as the Uniform Construction Code.

The state energy code is evaluated for revisions or modifications every three years. The new code requirements are adopted at the beginning of each state building code cycle (which corresponds with

Ann Arbor's Living Carbon Neutrality Plan

The city plans to power their electrical grid with 100% renewable energy by implementing community choice aggregation, supporting onsite renewables and battery storage, developing community solar programs, and launching the landfill solar project. These four actions are projected to reduce community-wide greenhouse gases by 41%. 

The Community Choice Aggregation (CCA) program is an agreement among stakeholders to allow local governments to procure power on behalf of their residents, businesses, and municipal accounts from an alternative supplier while receiving transmission and distribution services from their existing utility providers. CCA allows communities to have more control

Note:  In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENow for more information about PACE financing

Note: Check the program web site for information regarding solicitations.

The Economic Development Corporation (EDC) of the City of Detroit is offering financial assistance to commercial, institutional and public buildings in Detroit that install energy efficiency and renewable energy technologies. Loans are available between $50,000 to $150,000. Eligible technologies include building insulation, glazing treatments, windows, doors, weatherstripping, insulated roofs, solar panels, geothermal installations, wind, hydroelectric, thermal load reduction, HVAC, interior and exterior lighting, electrical, humidification and low flow water/plumbing projects. Other technologies may also be eligible for funding. In order to apply for financial assistance, contact the Program Manager listed

In January 2006, the City of Grand Rapids approved a resolution detailing the city's sustainability policy for public buildings. The resolution directed city personnel to implement the principles for the U.S. Green Building Council's LEED program and the EPA Energy Star and Green Lights programs. Included in this was a specific requirement that all construction and renovation projects involving municipal buildings larger than 10,000 square feet and a cost of $1 million or more receive LEED certification.

Update: Grand Rapids' 2019 strategic plan established goals for renewables, emissions reductions, and energy reductions for public buildings, as well as percentage increases

Note: The City of Grand Rapids was named No. 16 on the EPA Top 30 governments list for renewables on October 27, 2014. As of 2018, the city's annual power usage from renewable energy resources was 34%. Green power resources include biogas, solar, and wind. Providers are consumer energy and on-site generation.

Grand Rapids Strategic Plan: Health and Environment

The city of Grand Rapids seeks to reduce carbon emissions from city operations, transportation, buildings, and utilities in its 2020-2023 strategic plan. In 2018, 34% of city electricity was supplied by renewable sources, the city aims to increase this proportion to 100%

Green Power Purchasing Executive Order

By an executive order from the Mayor's Office, City of Lansing facilities are required to procure 10% of their energy consumption from renewable sources by 2010, escalating to 15% in 2015 and 20% in 2020. This green power purchasing policy is part of a broader initiative designed to reduce the contribution that city facilities make to greenhouse gas emissions and climate change. Several additional provisions apart from green power procurement are contained in the order, among them a goal of reducing energy use in city facilities by 10% as soon as it is practical and

The Coldwater Board of Public Utilities (CBPU) offers incentives that encourage residential customers to install energy efficient appliances and energy saving measures.  Rebates are available for LED lamps, programmable thermostats, Energy Star TV, refrigerators, freezers, dishwashers, heat pump water heaters, ceiling fans, dehumidifiers, clothes washer/dryer, room/central AC, and furnace fan ECM motors. View the program website for more information on rebates and to review a list of eligible equipment.

 

 

 

 

 

 

 

 

 

Consumers Energy residential electric customers are eligible to apply for a variety of rebates on energy efficient equipment. Customers must install equipment in the Consumers Energy service area and receive electric service from Consumers Energy for the appliance purchased. Consumers Energy may verify sales transactions and that installed energy-saving measures meet all applicable building codes, zoning laws, local, state, and federal requirements. A contractor’s invoice itemizing the purchased equipment and indicating type, make, model, price, serial numbers, and date of purchase must accompany each Consumers Energy Incentive Request Form.

For more information about income-qualified incentives or incentives for new construction

Consumers Energy residential gas customers are eligible to apply for a variety of rebates on energy efficient equipment. Furnaces, boilers, water heating units, insulation, windows, doors, energy audits and comprehensive improvements are eligible under this program. Customers must install equipment in the Consumers Energy service area and receive gas service from Consumers Energy for the appliance purchased. Consumers Energy may verify sales transactions and that installed energy-saving measures meet all applicable building codes, zoning laws, local, state, and federal requirements. A contractor’s invoice itemizing the purchased equipment and indicating type, make, model, price, serial numbers, and date of purchase must

Note: The Experimental Advanced Renewable Energy Program is closed to new participants. New distributed generation customers of Consumers Energy can refer to Michigan's net metering policy and visit the Consumers Energy net metering webpage for an alternative option.

The Experimental Advanced Renewable Energy Program (EARP) offers Consumers Energy residential and non-residential customers a buy-back tariff program for electricity produced by solar photovoltaic (PV) systems and anaeorobic digestion. The pilot version of the program began in 2009 and closed in December 2010, but an expanded version of the program has extended into 2015. 

Solar PV

Owners of residential systems from 1-20

Consumers Energy offers rebates to its residential and commercial customers for the installation of electric vehicle supply equipment (EVSE). For more information, visit the program website.

Residential Customers of DTE Energy (Electric) are eligible for a $500 rebate for the installation of a qualified Level 2 charger. To qualify, customers must buy or lease an EV, enroll in a TOD rate, and install a Level 2 Charger. For more information, visit the program website.

DTE offers a variety of rebates for its electric service customers. These include heat pumps, air conditioning, lighting, insulation, and select appliances. Find a participating contractor who will come to your home with information about equipment that qualifies for rebates. For information on program details, requirements, and eligible equipment, please see the website above.

DTE furnace installation rebates and tune-up rebates for existing homes. Find a participating contractor who will come to your home with information about furnace equipment that qualifies for rebates. For more details on the program please visit the website above.

Recent Measures (2020)

On September 23, 2020, Governor Gretchen Whitmer issued Executive Directive 2020-10 which increased the requirements of emissions and energy use reductions in Michigan state-owned buildings. As per this directive, The Department of Technology, Management, and Budget (DTMB) must investigate the cost effectiveness of energy efficiency opportunities when planning or renovating a building owned or operated by the state. DTMB must ensure that:

• All new buildings and facilities owned and operated by the State, and all major renovations of such buildings and facilities, are carbon neutral by 2040; and
• All existing buildings and facilities owned and operated by

The Energy Optimization Programs, administered by  the Michigan Electric Cooperative Association (MECA) collaborative, provide residential electric incentives for the following Michigan utilities:

Energy Optimization

• Alger-Delta Electric Cooperative
• Cloverland Electric Cooperative
• Daggett Electric Company
• City of Escanaba
• Great Lakes Energy Cooperative
• HomeWorks Tri-County Electric Cooperative
• Marquette Board of Light and Power
• Midwest Energy Cooperative
• Newberry Water and Light Board
• Ontonagon County Rural Electrification Association
• Presque Isle Electric and Gas Cooperative
• City of South Haven
• City of Stephenson

The Michigan Public Clean, Renewable, and Efficient Energy Act (Public Act 295), passed in October 2008, provided original authorization to create these energy efficiency

Franklin Energy Services has partnered with the Michigan Public Power Agency (MPPA), which is made up of 19 municipal utilities, to offer the Energy Smart Residential Energy Efficiency Rebate Program. Residential electric customers served by one of the 19 participating utilities are eligible for rebates on energy efficient upgrades. Purchased products must meet program standards in order to receive rebates, please refer to the Program Application for all equipment requirements and guidelines. The Energy Smart Program also offers rebates for the pickup and proper disposal of inefficient, yet still working, refrigerators ($50), room A/C units ($15), and dehumidifiers ($15). 

Application

Great Lakes Energy offers rebates to residential customers through their Energy Wise program. Through this program, rebates exist for energy efficient appliances, lighting, HVAC equipment, and other energy saving measures. View the website for a complete list of rebates and eligible technologies. 

Indiana Michigan Power offers incentives to residential, small commercial and commercial/industrial/multifamily customers to install electric vehicle charging stations. Basic descriptions of these incentives can be found below.

Residential

$500 for joining the program. I&M’s incentive helps offset the cost to set up or retrofit your current charger configuration to measure off peak PEV charging. PEV charging from 11:00 pm to 6:00 am daily will be discounted 45% from our standard residential per kWh rate.

Small Commercial

Existing small-commercial customers who average less than 4,500 kWh per month are eligible for a $500 incentive and a discounted off-peak rate up to

Note: As of May 2024, utility-specific interconnection rules proposed by Michigan's various investor-owned utilities are currently under review by the Michigan Public Service Commission (MPSC). The new rules must incorporate changes required by Public Act 235 of 2023.

Michigan adopted new statewide interconnection standards, the MIXDG rules, in 2023.

The new interconnection standards use a five-tier system similar to previous rules, but with fast-track processes available for all tiers. The five tiers are:

• Level 1: Certified, 20 kW or less
• Level 2: Certified, 20-150 kW
• Level 3: Not certified, 150 kW or less, or 150-550 kW
• Level 4: 550 kW-

The Lansing Board of Water & Light (BWL) offers multiple energy efficiency rebate programs to residential homeowners and renters who are customers of BWL. Rebates are offered for programs including:

1. Appliance recycling
2. Energy Star appliances
3. Energy Star lighting
4. Heating and cooling
5. Electrification
6. Solar installations
7. Plug-in electric vehicles
   

Some rebate amounts vary by equipment efficiency or capacity. Purchased products must meet all program standards in order to receive rebates. Application forms are available on the program website. Customers can contact BWL for any further information about these programs.

Note: In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing

The Low-Income and Energy Efficiency Fund (LIEEF), a statewide public benefits fund, is administered by the Michigan Public Service Commission (MPSC). Michigan's largest utilities, Detroit Edison, Consumers Energy, and Michigan Consolidated Gas Company (MichCon), contribute to the fund with money obtained through customer charges. Using LIEEF funding, the MPSC issues periodic requests for proposals (RFPs) for prospective projects. The purpose of the LIEEF is to provide energy assistance for low-income customers, to provide conservation and efficiency measures to reduce energy use and energy bills of low-income customers, and to promote energy efficiency among all customer classes. Yet, the MPSC emphasizes

Note: The Federal Inflation Reduction Act (IRA) created the Home Efficiency Rebates (HER) Program. The IRA established the main parameters for this program, but allowed the states to customize the program to meet their state-specific needs. The program is designed to provide rebates for whole-home energy improvements. Actual rebate amounts are determined by the level of modeled or measured energy savings and the income level of the applicant. See summary below and program website for complete details. 

The Home Energy Rebate programs will fund energy efficiency and electrification upgrades for Michiganders, helping to reduce monthly utility costs, reduce energy use

NextEnergy launched the MATch (Michigan Accelerating Technologies) Energy Grant on December 1, 2012. MATch provides cost-share and/or commercialization funds to eligible Michigan businesses and universities applying for advanced energy-related, non-SBIR/STTR federal funding from the Department of Energy, Department of Defense, National Science Foundation, Department of Transportation, etc. A current list of eligible funding opportunities is available on the program website.

In addition to matching funds, NextEnergy will provide federal funding application services to select companies and universities. For selected companies and universities who go on to win competitively-bid federal funding opportunities, NextEnergy will also provide commercialization services

Note:  In 2010, the Federal Housing Finance Agency (FHFA), which has authority over mortgage underwriters Fannie Mae and Freddie Mac, directed these enterprises against purchasing mortgages of homes with a PACE lien due to its senior status above a mortgage. Most residential PACE activity subsided following this directive; however, some residential PACE programs are now operating with loan loss reserve funds, appropriate disclosures, or other protections meant to address FHFA's concerns. Commercial PACE programs were not directly affected by FHFA’s actions, as Fannie Mae and Freddie Mac do not underwrite commercial mortgages. Visit PACENation for more information about PACE financing

Michigan Saves Financing

Michigan Saves financing is financial capital made available to customers through a network of lenders that offer favorable terms based on a negotiated contract. This program helps Michigan organizations reduce costs by financing energy-efficient lighting, heating and cooling systems, insulation, appliances, water heaters, and more. Upgrades are made with the help of our authorized contractors and an authorized lending partner.

Rates and Terms

Rates and terms are based on credit and subject to market change. However, commercial customers—which include energy users like for-profit and nonprofit organizations, multifamily properties, publicly owned buildings, and affordable housing—are eligible for minimum

Michigan Saves financing is financial capital made available to customers through a network of lenders that offer favorable terms based on a negotiated contract. This program helps Michigan families and households reduce costs by financing air sealing, heating and cooling systems, insulation, appliances, and more. Homeowners make the upgrades with the help of authorized contractors through an authorized lending partner.

Homeowners are eligible for rates ranging from 4.44% to 7.90% APR, though most customers finance at 5.50% APR. Terms are available up to 15 years with loan amounts ranging from $1,000 to $50,000. Actual rates, terms, and loan amounts vary

Note: Public Act 235 of 2023 made several changes to Michigan's distributed generation compensation rules. The aggregate cap for DG capacity will now be 10% of average in-state peak load. Within that 10%, 50% of capacity will be available for projects of more than 20 kW but less than 550 kW. The new individual system size cap is 550 kW, or 110% of a customer's energy consumption. The inflow-outflow methodology remains in effect.

Note: After June 1, 2018, utilities had to file new distributed generation tariffs following the "inflow-outflow" methodology approved by the MPSC as part of their general rate

This program was repealed by Act 90 of 2019 and will expire for tax years beginning after December 31, 2031.

Note: Public Act 38 of 2011 repealed the Michigan Business Tax (MBT) and implemented the Corporate Income Tax (CIT). Public Act 39 was passed in conjunction with the CIT and allows for certain credits awarded under the MBT to be retained for the duration of the agreements. Businesses receiving certain credits, including Renaissance Zone credits, may choose to either continue to file under the MBT to continue claiming their credits, or file under the CIT. Certain Renaissance Zone credits will

Note: Public Act 38 of 2011 repealed the Michigan Business Tax (MBT) and implemented the Corporate Income Tax (CIT). Public Act 39 was passed in conjunction with the CIT and allows for certain credits awarded under the MBT to be retained for the duration of the agreements. Businesses receiving certain credits, including Renaissance Zone credits, may choose to either continue to file under the MBT to continue claiming their credits, or file under the CIT. No additional Renaissance Zone credits will be awarded after 2011.

Businesses certified by the NextEnergy Authority that locate in the NextEnergy Zone to research, develop

On November 28, 2023, Governor Gretchen Whitmer signed House Bill 5120 (PA 233 of 2023) which provides siting authority to the Michigan Public Service Commission (MPSC) for utility-scale wind, solar, and energy storage facilities under specified conditions. The MPSC has engagement sessions scheduled that are open to the public to gather input on the implementation of PA 233.

What facilities are covered by PA 233?

• The siting process created in PA 233 applies to
• Solar facilities with a nameplate capacity of 50 MW or more,

• Wind facilities with a nameplate capacity of 100 MW or more, and

• Energy storage facilities

The Michigan Energy Office (MEO), within the Michigan Agency for Energy (MAE), provides funding for renewable energy activities on a recurring basis, subject to availability of funds. Eligible projects may include activities such as providing education/outreach and technical assistance to communities and businesses on renewable energy topics, feasibility studies, demonstrations of commercially available renewable energy technologies, and/or other activities that promote renewable energy as an affordable, reliable, adaptable, and environmentally protective energy solution. Grant award amounts vary according to each individual solicitation. Those interested in participating should contact Tania Howard at the Michigan Energy Office for additional details.

In 2006, Michigan enacted legislation allowing for the creation of Renewable Energy Renaissance Zones (RERZ). Renaissance zones offer significant tax benefits to facilities located within their boundaries. Facilities within a renaissance zone do not pay the Michigan Business Tax*, state education tax, personal and real property taxes, or local income taxes (where applicable). These taxes may be abated for up to 15 years, with the abatements being phased out in 25% increments over the last three years of the zone designation. For residents of renaissance zones designated before 2012, taxpayers are exempt from paying certain income taxes, if they

Michigan enacted Public Act 235 in November 2023, expanding renewable energy requirements substantially and adding a clean energy standard. Renewable energy requirements are now 50% by 2030 and 60% by 2035. Clean energy requirements are 80% by 2035 and 100% by 2040.

In October 2008, Michigan enacted the Clean, Renewable, and Efficient Energy Act (Public Act 295), requiring the state's investor-owned utilities, alternative retail suppliers, electric cooperatives, and municipal electric utilities to generate 10% of their retail electricity sales from renewable energy resources by 2015. SB 438, signed in December 2016, increased this requirement to 15% by 2021, and

H.B. 5028, enacted in June 2024, declares that any provision within a homeowners' associations agreement that prohibits or has the effect of prohibiting the installation of a solar energy system is invalid and unenforceable as contrary to public policy. The law provides similar protections for the installation of:

• Clotheslines
• Air source heat pumps
• Ground source heat pumps
• Insulation
• Rain barrels
• Reflective roofing
• Energy efficient appliances
• Solar water heaters
• Electric vehicle supply equipment
• Energy-efficient windows
• Energy-efficient insulation materials

The bill also directs each homeowners’ association in this state to adopt a written solar energy policy statement. The statement may not

Michigan offers a solar heating contractor specialty license to individuals who have at least three years of experience installing solar equipment under the direction of a licensed solar contractor and have passed the state examination. Students or graduates of a recognized trade school can count one year of school toward the three year requirement. Contact the Michigan Department of Licensing and Regulatory Affairs to apply. There is no equivalent specialty license for solar-electric (PV) installers. When solar equipment is installed as a heating element a mechanical contractors license is required in accordance with the state of Michigan Forbes Mechanical Contractors

The Solar Energy Facilities Taxation Act (known as the Solar Energy Exemption), 2023 PA 108, provides a tax incentive to owners of utility-scale solar energy generation facilities who build a new solar energy facility and provides local governments a guaranteed and stable revenue stream from the solar energy generation facilities. A Solar Energy Facility Exemption Certificate (SEFEC) entitles a qualified facility to an exemption from ad valorem real property taxes for term of 20 years. Exempt solar facilities are subject to a specific tax called the solar energy facilities tax. Applications are filed, reviewed, and approved by the local governmental

Upper Peninsula Power Company (UPPCO) offers a variety of incentives and rebates for residential customers. Rebates are available for ENERGY STAR® appliances including freezers, room air conditioners, clothes dryers and other appliances, and an appliance recycling program.

Other Programs offered by UPPCO

Residential Energy Insights: This program offers free assessments of home energy usage.

Empower Program: This program offers free energy efficient equipment for some income qualified homes.

New Home Performance Program: This program high-efficiency products at discounted rates for electrically heated new homes.

Multifamily Efficiency Program: This program offers complimentary upgrades in common areas, outdoor spaces, and homes.