Credits, rebates remain for energy efficiency

19 September 2024

Federal tax credits

Federal tax credits are available through the end of 2024 for various energy-efficient home improvements. For example, installing a geothermal heat pump, solar energy systems, or battery storage systems may qualify you for a tax credit of 30 percent of the total cost, with no upper limit. For more details on federal tax credits and eligibility, visit the U.S. Department of Energy’s website at energystar.gov.

State of Michigan

Michigan continues to offer financing options for energy-efficient home improvements through programs such as Michigan Saves. Homeowners can receive up to $30,000 in financing for improvements like new windows, doors, furnaces, air conditioners, and appliances that enhance energy efficiency or use renewable energy. Visit the Michigan Saves website at michigansaves.org for more information on how to apply for these benefits.

Utility rebates

Utility rebates are a significant way for homeowners to save on energy-efficient upgrades. Here’s a breakdown of rebates from major utilities:

Consumers Energy (2024)

• Rebates are available for improving heating and cooling systems, increasing insulation R-value, and sealing air/ducts.
• Window and patio door replacement rebates also apply. For example, upgrading to a programmable thermostat offers rebates ranging from $10 to $50, while replacing a Tier 2 Natural Gas Boiler with 95% AFUE can get you up to $1,000.
• Additional rebates apply to Energy Star certified appliances, including up to $50 for appliance purchases and up to $50 for recycling older working refrigerators or air conditioners.
• Comprehensive home energy assessments by certified contractors could qualify for rebates from $100 to $500.

For more information, visit Consumers Energy’s website.

DTE Energy (2024)

• DTE offers rebates for upgrading heating and cooling equipment, water heaters, insulation, air leak sealing, and replacing windows and doors. Rebates start at $10 for adding a programmable thermostat and go up to $1,200 for energy-efficient gas boilers.
• DTE’s Energy Star appliance rebate program offers savings on eligible products, and you can also take advantage of their appliance recycling program.
• Through the DTE Energy Home Performance Program, homeowners can access additional rebates while learning about the best energy efficiency upgrades.

For detailed information, check the Save Energy section of DTE’s website at dteenergy.com.

These are just two of the more than 40 utilities operating in the state of Michigan.

If you are planning any upgrades to your home this year, make sure you determine if you can qualify for a tax credit or rebates before you start the project. Please verify the exact details with the official sources as rebates and tax credits are subject to change. While you will save energy and money with an energy-efficient air conditioner or new windows, the rebates you may qualify for may help offset the initial cost.