Homeowner FAQs

Questions Pertaining to What/Who Qualifies for the Rebate:

What kind of furnace or water heater does the Rebate cover?

  • Any new, residential, Energy Star propane furnace (furnace must be at least 40,000 BTU and heat the home. Furnaces for commercial buildings, barns, garages, pool houses, sheds, etc. are not eligible. Propane furnaces with Heat pumps attached do NOT qualify.) 
  • Any new, Energy Star propane water heater (storage or tankless) 
  • Any new residential, Energy Star propane boiler (Boilers are considered water heaters)

Does my propane furnace or water heater have to be Energy Star certified to qualify for the Rebate?
Yes, the propane propane water heater or furnace must be Energy Star to qualify for the rebate.

Is the Rebate available to non-profits and businesses?
Yes, non-profits, businesses and homeowners in Michigan qualify for the rebate.

Can I switch my electric or fuel oil furnace to a propane furnace and qualify for the Rebate?
Yes, you receive $500 for switching from any electric or fuel oil furnace to a new Energy Star propane unit. As long as the installation occurred in 2025, and is postmarked, emailed or faxed by December 31, 2025, 11:59pm EST.

Can I switch my electric or fuel oil water heater to propane water heater and qualify for the Rebate?
Yes, you receive $400 for switching from any electric or fuel oil furnace to a new Energy Star propane unit. As long as the installation occurred within 2025 and is postmarked, emailed or faxed by December 31, 2025, 11:59pm EST.

I am replacing my old propane furnace for a new propane furnace, do I qualify for the rebate?
Yes, you receive $200 for installing a new Energy Star propane furnace when replacing an old propane unit.

I am replacing my old propane water heater for a new propane water heater, do I qualify for the rebate?
Yes, you receive $200 for installing a new Energy Star propane water heater when replacing an old propane unit.

Do combi-boilers qualify for the Rebate?
Yes, as long as the boiler is Energy Star, it qualifies for the rebate.

I replaced an electric water heater and propane boiler for a new, Energy Star propane combi-boiler, would I receive two rebates?
No, you would only qualify for ONE rebate amount for the boiler you replaced even though you replaced two appliances.

Does warranty work qualify for the Rebate?
No, the unit needs to be a new purchase. Warranty work is a replacement of the original purchased unit and therefore does not qualify.

Questions Pertaining to Installation:

Can the installer perform the Propane Safety Check (Section 5) on my new Energy Star, propane furnace or water heater as required by the Rebate, after they install it?
Yes, as long as the installer is licensed in the state of Michigan, the installer may perform the propane safety check. They can fill/ complete Section 5 on the application when they install the new unit.

I’m a homeowner and will install the propane furnace and/or water heater myself, but I’m not a licensed installer, do I still qualify for the Rebate?
Yes, as a homeowner you can install the unit yourself and still qualify. However, the Propane Safety Inspection (Section 5) must be performed by your propane supplier. Section 4 (licensed installer info) would need to be labeled as “Self Installed.”

I’m a homeowner and a licensed installer in Michigan, do I get the installer and homeowner rebate if I install it myself?
No, if you’re the homeowner and a licensed installer, you will ONLY qualify for one rebate, NOT both the installer and homeowner rebate.

I am building a new house and need a furnace and water heater, do I qualify for the Rebate?
Yes, as long as the units are propane, Energy Star, installed in 2025, and submitted by December 31, 2025, 11:59pm EST you qualify for the rebate.

What qualifies as a “New Construction” when I install a new, Energy Star propane furnace and/or water heater?
For an install to qualify as a “New Construction,” there must be no prior furnace or water heater, and new line documentation must be provided with a completed application and receipt of purchase/invoice.

I installed a new propane furnace or water heater in my cabin, which is located in Michigan, but my primary residence is in a different state. Do I qualify for the Rebate?
Yes, fill out section 3 with your primary address but also make sure to include the installation address.

Questions Pertaining to Submission:

Is there a time frame I need to submit my rebate application to receive my check?
Yes, your 2025 application must be postmarked, emailed or faxed by December 31, 2025, 11:59pm EST.

How soon will I receive my check after the application is submitted?
It may take up to 90 days from the time your application is processed before you receive a check by U.S. mail.

How do I send the application to the Michigan Propane Commission?
You can fill out our online application, email, fax or mail the application in to the Commission. The info is located on the bottom of page 2 of the application.

I do not have a printer nor am I tech savvy, and I need a copy of the application. Where can I go to get the application?
Call the Michigan Propane Commission at (517) 312-0097 and we’ll mail you an application.

What is a “Propane Work Order?”
A Propane Work Order is proof of a new propane lines being trenched to a home or new tank being set on the property, this document can be provided by the propane supplier in the form of a work order or invoice. It is required for any new construction or fuel switch out.

What qualifies as “Proof of Energy Star?”
Proof of Energy Star can be a picture of the Energy Star label on the unit, or submit a copy of the unit’s specifications with the AFUE or UEF rating as proof of Energy Star.