Propane Appliance Rebates

New Program - Effective July 1, 2025

We Are Not Accepting Applications at this Time.
We Will Resume Accepting Applications on July 1, 2025

$250

Furnace Rebate

When you replace an electric/oil furnace with a new Energy Star propane furnace, or installing in a new construction

$250

Water Heater Rebate

When replacing an electric/oil water heater or boiler with a new Energy Star, propane water heater or boiler, or installing in a new construction

Furnace Rebate

(Furnaces must be Energy Star & at least 40,000 BTUs)

$250

When you replace an electric/oil furnace with a new Energy Star propane furnace, or installing in a new construction

Furnaces for commercial buildings, barns, garages, pool houses, sheds, etc. are not eligible. Propane furnaces with Heat pumps attached do NOT qualify.

Water Heater Rebate

(Storage or Tankless, Energy Star Water Heaters or Boilers)

$250

When replacing an electric/oil water heater or boiler with a new Energy Star, propane water heater or boiler, or installing in a new construction

Propane water heaters and boilers attached to heat pumps do NOT qualify.

Furnace Rebate

Rebates Open to Michigan Residents

How to Apply:

  1. Select/contact a Licensed Installer to install your new, Energy Star, Propane Furnace, Water Heater, or Boiler.

  2. The Homeowner, Installer, or Propane Supplier may submit the “complete” rebate application package. The package must include these documents:

    1. Application completed in-full including required signatures

    2. Paid-in-Full receipt of purchase of new propane unit (furnace, water heater, boiler)

    3. Proof of Energy Star

    4. Proof of New Propane-Line Trenched or New Tank Set

      Rebate applications will be denied if application is incomplete and documents are missing.

  3. Applications must be submitted within 60 days of the completed install. Applications submitted outside the 60 day timeframe will be denied.

Water Heater Rebate

Energy Star Logo

If there is no Energy Star label on your propane water heater or furnace, submit a copy of the unit’s specifications with the AFUE or UEF rating as proof of Energy Star.

Storage Tank Propane Water Heater

  • Less than 55 gallons: 0.64 UEF or greater.
  • More than 55 gallons: 0.78 UEF or greater.

Propane Boilers

  •  90% AFUE or greater.

Tankless/Instantaneous Propane Water Heater

  • 0.87 UEF or greater.

Furnaces

  • 95% AFUE or greater

Appliance Safety:

RETURN ON INVESTMENT

PROPANE VS. ELECTRIC

Water Heater return on investment. Propane, standard and tankless, versus electric

* Unit costs vary by what make and model you choose to install in your home or business

Sources: Propane.com, EIA 2020 State Annual Average data

All Propane Manufacturers Qualify for the Water Heater & Furnace Rebates

Below are a Sample of Manufacturers to Choose From

Water Heater Manufacturers

Box Store Rebate Centers