What Is the MiHER Program? Michigan's Free Heat Pump Rebate Explained
If you live in Michigan and have been putting off replacing your old furnace or air conditioner because of the cost, the MiHER program might be the answer. It can get you a new, energy-efficient heat pump for little to nothing out of pocket.
Here is everything you need to know.
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What Is MiHER?
MiHER stands for Michigan Home Energy Rebates. It is a state program administered by the Michigan Department of Environment, Great Lakes, and Energy (EGLE) and funded by the federal Inflation Reduction Act (IRA).
The goal is simple: help Michigan households lower their energy bills by upgrading to more efficient heating and cooling equipment, with the state picking up a large portion of the cost.
The program launched statewide in April 2025 and is currently open to income-qualifying households across Michigan.
What Does MiHER Cover?
MiHER has two component programs:
1. Home Electrification and Appliance Rebates (HEAR)
This is what most homeowners use to get a new heat pump. HEAR reduces the upfront cost of high-efficiency electric appliances and equipment, including:
- Heat pumps for heating and cooling
- Heat pump water heaters
- Electric stoves and dryers
- Electrical panel upgrades
2. Home Efficiency Rebates (HER)
HER covers whole-home energy efficiency improvements, such as:
- Insulation
- Air sealing
- Heating and cooling system upgrades that reduce overall energy use
HER rebates are based on how much energy your upgrades save. The more you save, the more you get back. You can participate in both programs, but you cannot use both rebates for the exact same upgrade.
Who Qualifies for MiHER?
Eligibility is based on your household income relative to your county's Area Median Income (AMI). Here is how it breaks down:
- At or below 80% AMI: Rebates can cover the full cost. For qualifying households, a heat pump installation can be completely free.
- Between 80% and 150% AMI: Rebates cover a significant portion of the cost.
- Above 150% AMI: Not eligible for MiHER rebates.
The program prioritizes low-to-moderate income households and runs on a first-come, first-served basis. Funds are limited.
Both homeowners and renters can pursue upgrades, though renters typically need landlord approval before work can begin.
How Does the Rebate Work?
You do not pay upfront and wait for a check. The rebate goes directly to your approved contractor, who reduces your final bill by the rebate amount. You only pay the difference, if anything.
Here is the general process:
- Check your income eligibility against your county's AMI
- Work with a MiHER-approved contractor like Atlas Air Comfort
- The contractor handles rebate reservation and paperwork
- Installation happens
- The rebate is paid to the contractor. You pay the remainder, if any.
Why Heat Pumps?
86% of the energy used in a home goes toward heating and cooling spaces, heating water, cooking, and refrigeration. Heat pumps handle heating and cooling in one efficient system, using significantly less energy than traditional furnaces and central air units.
For most Michigan households, replacing an old HVAC system with a heat pump means lower monthly utility bills year-round, plus better comfort and indoor air quality.
Get Your Rebate Through Atlas Air Comfort
Atlas Air Comfort is a licensed MiHER contractor, approved by the state of Michigan to process and submit rebates on behalf of homeowners.
That means you do not have to navigate the program yourself. No figuring out which forms to file, no chasing income documentation, no back-and-forth with EGLE. We handle all of it.
What We Take Care Of
- Income qualification: We confirm your AMI tier so you know exactly what you are eligible for before anything starts
- Rebate reservation: We reserve your funds with the program before installation, locking in your rebate
- All paperwork: We submit every required document on your behalf
- Installation coordination: We work with licensed local HVAC crews to get the job done
- Direct rebate processing: The rebate goes straight to us. You pay nothing extra.
How to Apply
Getting started takes a few minutes. Here is all you need to do:
- Fill out the short form on our Michigan page
- We reach out to confirm your eligibility
- We handle everything from there
No upfront costs. No complicated paperwork on your end. Qualifying households can get a new heat pump installed at no cost.
Ready to see what you qualify for?
Apply now and we will confirm your eligibility. Funds are first-come, first-served, so the sooner you apply, the better.
Frequently Asked Questions
Is MiHER only for homeowners?
No. Renters can also participate, but most upgrades will require landlord approval first.
How much is the heat pump rebate?
Rebate amounts vary based on your income tier and project. See the official MiHER rebate page for current figures, or contact Atlas Air Comfort and we will walk you through what you qualify for.
Do I pay anything upfront?
No. The rebate is paid directly to your contractor. You only pay the balance, if any, after the rebate is applied.
Can I combine MiHER with other incentives?
Yes. MiHER rebates can be combined with federal tax credits and utility company rebates, so your total savings can be even higher.
Will the program run out of funds?
Yes. MiHER is designed to serve a limited number of Michigan households and operates on a first-come, first-served basis. Applying sooner means a better chance of getting funded. Check current program status at michigan.gov/egle.