2026 Propane Rebate Program
Propane Furnace Rebate
(Furnaces must be Energy Star & at least 40,000 BTUs)
Receive
$250
When you replace your existing electric, fuel oil, or natural gas furnace with a New Energy Star Propane Furnace, or install a New Energy Star Propane Furnace in a new build/construction.
Mail-in your rebate application
or submit it online
Propane Water Heater Rebate
(Storage or Tankless, Energy Star Water Heaters or Boilers)
Receive
$250
When you replace your existing electric, fuel oil, or natural gas water heater with a New Energy Star Propane Water Heater or Propane Boiler, or install a New Energy Star Propane Water Heater or Propane Boiler in a new build/construction.
Mail-in your rebate application
or submit it online
Rebates are Open to Michigan Residents
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:
Application completed in-full including required signatures
Paid-in-Full receipt of purchase of new propane unit (furnace, water heater, boiler)
Proof of Energy Star
Proof of New Propane-Line Trenched or New Tank Set
Rebate applications will be denied if application is incomplete and documents are missing.
Applications must be submitted within 60 days of the completed install. Applications submitted outside the 60 day timeframe will be denied.
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
RETURN ON INVESTMENT
PROPANE VS. 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 Furnace & Water Heater Rebates
Below are a Sample of Manufacturers to Choose From
Furnace Manufacturers
Water Heater Manufacturers
Box Store Rebate Centers
