Michigan Propane Rebates

Propane Furnace Rebate

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

Receive

$250

Replace your existing furnace
(electric or fuel oil) with a New Energy Star Propane Furnace, or in a new build/construction.

Mail Your Application or Submit Online

Only furnaces used to heat a home are eligible. Furnaces attached to electric heat pumps do not qualify.

Propane Water Heater Rebate

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

Receive

$250

Replace your existing water heater (electric or fuel oil) with a New Energy Star Propane Water Heater or Propane Boiler, or in a new build/construction.

Replace your existing water heater
(electric or fuel oil) with a New Energy Star Propane Water Heater or Propane Boiler, or in a new build/construction.

Mail Your Application or Submit Online

Propane water heaters and boilers attached to electric heat pumps.

Rebates are Available to Michigan Residents

Submit rebate applications within 90 days of new propane installation.

How to Apply:

Select/contact a Licensed Installer to install your new, Energy Star, Propane Furnace, Water Heater, or Boiler.
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
Applications must be submitted within 90 days of the completed install. Applications submitted outside the 90-day timeframe will be denied.

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

Estimated Annual Energy Cost

The table uses annual energy demand assumptions: 60 MMBtu per year for furnaces and 15.07 MMBtu per year for water heaters.
(MMBtu = metric million British thermal units)

Sources:
U.S. Energy Information Administration – EIA.Gov

Electric Power Monthly as of January 2026
Weekly Heating Oil and Propane Prices as of April 2026