WASHINGTON— Michigan has launched a pilot version of its federal Home Energy Rebate programs, which is supported by the Inflation Reduction Act.

Michigan is launching pilot versions of the Home Efficiency Rebates (HER) and Home Electrification and Appliance Rebates (HEAR) programs in order to lower energy bills by helping pay for energy-efficiency improvements. The pilot programs are starting in two regions of the state, the utility service areas of the Holland Board of Public Works and the Upper Peninsula Power Company (UPPCO).

Michigan’s launch is part of the nationwide initiative by President Joe Biden’s administration to provide $8.8 billion in federal funding for states, territories, and Indian Tribes to lower energy costs and increase efficiency in American homes by making it more affordable to install cost-saving measures such as heat pumps, electrical panels, and insulation.

Michigan’s share of the Home Efficiency Rebates funding totals nearly $211 million.

According to the U.S. Department of Energy (DOE), these energy-saving measures will save American households up to $1 billion annually in energy costs and support an estimated 50,000 U.S. jobs in residential construction, manufacturing, and other sectors. These investments also advance Biden Justice40 Initiative, which sets a goal that 40% of the overall benefits of certain federal climate, clean energy, affordable and sustainable housing, and other investments go to disadvantaged communities that have been marginalized by underinvestment and overburdened by pollution.

“With winter approaching, we are thrilled that Michiganders can begin to take advantage of these rebate programs,” said Keishaa Austin, principal deputy director of the DOE’s Office of State and Community Energy Programs. “By making home heating, insulation, weatherization, and so many other upgrades more affordable, not only will these programs help people stay warm, but they can help people save hundreds to thousands of dollars in the process.”

"The Michigan Home Energy Rebates program will lower energy costs and help families improve their homes and upgrade to more energy-efficient home appliances, helping them stay cool in the summer and warm in the winter," said Phil Roos, director of the Michigan Department of Environment, Great Lakes, and Energy.

“These resources will catalyze action towards the goals of the MI Healthy Climate Plan, the state’s climate action roadmap, and continue to grow the state’s booming clean-energy economy,” Roos added.

To advance the objectives of the rebate programs, DOE is requiring states and territories to allocate at least half of the rebates to low-income households, defined as those earning 80% or less of their area median income. That is expected to benefit many households in disadvantaged communities. States and territories must also submit community benefits plans to ensure good jobs and other economic opportunities are available. To help keep consumers informed and equipped with resources, DOE recently released a Consumer Bill of Rights framework for the programs and is encouraging state, territorial and Tribal rebates programs to adopt it.