Home Energy Rebates

Home Energy Rebates

The City is pleased to provide a series of rebates to help its A2ZERO goals. This $1.9 million community investment program is expected to offer over 1,000 sustainability-related rebates to residents across the city. At least 50% of the rebates will be for income qualified households. Thanks to funding from the Community Climate Action Millage, we plan to offer these rebates annually for many years.

Please note that rebates will apply only to projects and purchases completed on or after July 1, 2024. 

There are five main steps to obtain a rebate

    1. Determine if your project qualifies for a rebate
    2. Determine if you qualify for an income-based or market-rate rebate
    3. Reserve your rebate
    4. Complete your project
    5. Submit your complete rebate application

If you have already completed your project, you can apply for a rebate without advance reservation. 

Questions? Need Help Applying?

For questions about the program overall, contact the Office of Sustainability and Innovations at sustainability@a2gov.org.

For questions about your application, status, or technical requirements, contact the rebate team at A2ZERORebates@michiganenergyoptions.org or by phone at 734.726.4747.

Obtaining Your Rebate

Eligibility

To be eligible for the A2ZERO Home Energy Rebate (HER) program, the following criteria must be met:  

  • You must own or rent a residential property within the City of Ann Arbor. 
  • All equipment must be installed at the eligible property
  • Installed equipment must meet the requirements detailed below in the Qualified Products table
  • You must be 18+ years of age
  • The project is part of a retrofit or upgrade to an existing building.
  • The project is part of an addition to an existing structure, only if the improvements exceed Michigan Residential or Commercial Code requirements. 

Rebates are not available for the following projects:

  • Entirely new construction, including new homes or commercial buildings built from the ground up.
  • Measures that are code-required minimums in new construction, retrofits, or additions.

Qualified Products

Cate​​gory Measure Program Requirements Market Rate Rebate Income-Qualified Rebate
All Rebates May Not Exceed 90% of Measure or Project Cost
Heat Pumps Cold Climate Heat Pump (Central or Mini-Split) Cold-Climate central ASHP and Cold-climate Mini-Spits: Must be listed on ashp.neep.org with a minimum SEER2 of 15.2 and H​​SPF2 of 8. Dual-fuel heat pumps are not eligible. Contractor installation, Manual J, and AHRI Certificate required. $4,000 $5,500
Ductwork  Ductwork for Centrally ducted​ CC ASHP Applicable to existing duct work modifications only.  Must properly size ductwork to bring duct static pressure into required manufacturer range. Contractor installation, pre and post-static pressure testing, and pictures of modified duct work required.​ $1,500 $2,500
Water Heating Heat Pump Water Heater Must have a Uniform Energy Factor (UEF) of 2.0 or higher. Contractor installation required. $1,000 $2,000
Cooking and  Appliances Induction Cooktop or Range Must be at least 30 inches wide with four burners. Portable units are not eligible. $500 $750
Heat Pump Dryer ENERGY STAR certified heat pump dryer. Must replace an existing dryer. $300 $500
Electrical Upgrades Electric Panel Upgrade Replacement of main service panel (minimum 200A) or addition of sub-panel. Not eligible for new construction. Contractor installation required. $1,000 $2,000
Battery Storage Battery Storage Battery storage must have capacity of at least 13 kWh. Contractor installation required. $2,000 $3,500
E-Bike E-Bike UL 2849 certified. Motor ≤750W, not gas-powered. No retrofit kits. 3 wheels or less and have operable pedals. Includes all three classes. 50% of bicycle cost, up to $250 50% of bicycle cost, up to $1,000
Insulation Attic Insulation Minimum 500 sq. ft., R30 initial value or less, R49+ final value. Contractor installation required. $500 $1,000
Wall Insulation Minimum 250 sq. ft., R7 initial value or less, R13+ final value. Contractor installation required. $500 $1,000
Crawl Space Insulation Minimum 100 sq. ft., R6 initial value or less, R10+ final value. Contractor installation required. $500 $1,000
Rim/Band Joist Insulation Minimum 50 sq. ft., R0 initial value, R10+ final value with air sealing. Contractor installation required. $500 $1,000
Basement Wall Insulation Minimum 200 sq. ft., R0 initial value, R10+ final value. Contractor installation required. $500 $1,000
Air Sealing Air Sealing Pre- and post-blower door testing required. Must achieve at least a 20% reduction. Contractor installation required. $500 $1,000
Insulation + Air Sealing Bonus Combined Insulation & Air Sealing Complete two insulation measures and 20% air sealing to qualify. $1,500 $2,000

The A2ZERO Home Energy Rebate Program offers higher dollar amounts for income-eligible individuals to help offset the costs associated with energy efficiency and electrification projects. These enhanced rebates are designed to make clean energy technologies more accessible to all residents, particularly those with lower incomes. 

  1. Check if your household's annual gross income (includes all members of the household, regardless of relationship) is at or below 120% of the Area Median Income (AMI) for Ann Arbor. You can refer to the income eligibility chart provided below. 

    Persons in Household Income Limit
    1 105,750.00
    2 120,900.00
    3 135,975.00
    4 151,050.00
    5 163,200.00
    6 175,275.00
    7 187,350.00
    8 199,425.00

     
  2. If your income qualifies you for an income-qualified rebate, complete the Income Eligibility Self-Attestation Form or submit a PDF of the Income Eligibility Self-Attestation Form by email, mail, or fax. Ensure that you accurately fill out all sections of the form and accurately declare all sources of household income. 
  3. Submit the completed form. You will be notified of your income eligibility decision via email. This may take up to 10 business days. Income verification may be requested.
  4. If approved, you will receive an Income Eligibility Code. This code is required to access the higher dollar amount income-eligible rebates. 

The A2ZERO Home Energy Rebate Program offers a rebate reservation system to help ensure funds are available for your project when you need them.

Once your income-qualification has been confirmed, or you confirm you are eligible for market-rate rebates, select the measures you are interested in and reserve rebate funds. Complete the Rebate Reservation Application online or by submitting a PDF of the Rebate Reservation Application by email, mail, or fax.  Provide your personal details and information about the planned project, including the type of equipment or measures you intend to install. Submit the application. You will receive a Rebate Reservation Code by email if your application is approved. Approval may take up to 10 business days.

Once your rebate is reserved, you or your contractor will have 90 days to complete the project. 

Note: Contractors can also claim the rebate on behalf of residents. They can apply the rebate amount as a deduction from the total cost of the eligible measures, making the process even easier for residents. In order for a contractor to claim the rebate, the invoice must show that the full amount of the rebate has been deducted from the total cost of the project.

 

Once you have your reservation code, complete your project within 90 days of rebate reservation approval. Ensure all work is completed by a licensed contractor and collect all necessary supporting documentation. 

Fill Out the full Rebate Application Form. Be sure to submit all required documentation as part of your application.

PDF Rebate Application Form (must be submitted by email, mail, or fax)

Submission Methods:

  • Online: Submit through linked applications above.
  • Mail: Ann Arbor Home Energy Rebate Program, PO Box 609, Grand Ledge, MI 48837-0609
  • Email: a2zerorebates@michiganenergyoptions.org
  • Fax: 734.726.9050

Application Review:

Your application will be reviewed for completeness and eligibility. If any information is missing, the program support team will contact you to request the necessary details. If applying online, you will receive a confirmation email when your application is received.

Receive Your Rebate: 

Once your application is reviewed and approved, you will receive your rebate check within 6-8 weeks. 

Obtaining Your Rebate

Eligibility

To be eligible for the A2ZERO Home Energy Rebate (HER) program, the following criteria must be met:  

  • You must own or rent a residential property within the City of Ann Arbor. 
  • All equipment must be installed at the eligible property
  • Installed equipment must meet the requirements detailed below in the Qualified Products table
  • You must be 18+ years of age
  • The project is part of a retrofit or upgrade to an existing building.
  • The project is part of an addition to an existing structure, only if the improvements exceed Michigan Residential or Commercial Code requirements. 

Rebates are not available for the following projects:

  • Entirely new construction, including new homes or commercial buildings built from the ground up.
  • Measures that are code-required minimums in new construction, retrofits, or additions.

 

The A2ZERO Home Energy Rebate Program offers higher dollar amounts for income-eligible individuals to help offset the costs associated with energy efficiency and electrification projects. These enhanced rebates are designed to make clean energy technologies more accessible to all residents, particularly those with lower incomes. 

  1. Check if your household's annual gross income (includes all members of the household, regardless of relationship) is at or below 120% of the Area Median Income (AMI) for Ann Arbor. You can refer to the income eligibility chart provided below. 

    Persons in Household Income Limit
    1 105,750.00
    2 120,900.00
    3 135,975.00
    4 151,050.00
    5 163,200.00
    6 175,275.00
    7 187,350.00
    8 199,425.00

     
  2. If your income qualifies you for an income-qualified rebate, complete the Income Eligibility Self-Attestation Form or submit a PDF of the Income Eligibility Self-Attestation Form by email, mail, or fax. Ensure that you accurately fill out all sections of the form and accurately declare all sources of household income. 
  3. Submit the completed form. You will be notified of your income eligibility decision via email. This may take up to 10 business days. Income verification may be requested.
  4. If approved, you will receive an Income Eligibility Code. This code is required to access the higher dollar amount income-eligible rebates. 

The A2ZERO Home Energy Rebate Program offers a rebate reservation system to help ensure funds are available for your project when you need them.

Once your income-qualification has been confirmed, or you confirm you are eligible for market-rate rebates, select the measures you are interested in and reserve rebate funds. Complete the Rebate Reservation Application online or by submitting a PDF of the Rebate Reservation Application by email, mail, or fax.  Provide your personal details and information about the planned project, including the type of equipment or measures you intend to install. Submit the application. You will receive a Rebate Reservation Code by email if your application is approved. Approval may take up to 10 business days.

Once your rebate is reserved, you or your contractor will have 90 days to complete the project. 

Note: Contractors can also claim the rebate on behalf of residents. They can apply the rebate amount as a deduction from the total cost of the eligible measures, making the process even easier for residents. In order for a contractor to claim the rebate, the invoice must show that the full amount of the rebate has been deducted from the total cost of the project.

 

Once you have your reservation code, complete your project within 90 days of rebate reservation approval. Ensure all work is completed by a licensed contractor and collect all necessary supporting documentation. 

Fill Out the full Rebate Application Form. Be sure to submit all required documentation as part of your application.

PDF Rebate Application Form (must be submitted by email, mail, or fax)

Submission Methods:

  • Online: Submit through linked applications above.
  • Mail: Ann Arbor Home Energy Rebate Program, PO Box 609, Grand Ledge, MI 48837-0609
  • Email: a2zerorebates@michiganenergyoptions.org
  • Fax: 734.726.9050

Application Review:

Your application will be reviewed for completeness and eligibility. If any information is missing, the program support team will contact you to request the necessary details. If applying online, you will receive a confirmation email when your application is received.

Receive Your Rebate: 

Once your application is reviewed and approved, you will receive your rebate check within 6-8 weeks. 

Rebates Redeemed

Rebate Availability

Rebate Availability

Before You Buy

Considering a Heat Pump?

Check out the A2ZERO Heat Pump Concierge.

osi.a2gov.org/heatpumpconcierge

Not sure where to start?

Consult our free A2ZERO Home Energy Advisor.

https://a2zerohea.org/

Additional Resources

Frequently Asked Questions Finding a Contractor – Michigan Saves Contractor Informational Webinar

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