Installer FAQs
Questions Pertaining to What/Who Qualifies for the Rebate:
Which types of furnaces or water heaters are covered by the rebate?
- 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 water heater or furnace must be Energy Star to qualify for the rebate.
What does the Installer Incentive cover?
You receive a check for up to $500 when you install a NEW Energy Star propane furnace and water heater in new construction, or replace an old electric or fuel oil furnace and water heater.
Can installers perform an installation in 2026 and qualify for the rebate even if the new propane water heater and/or furnace was purchased in a previous year?
Yes, installers can install appliance models from 2025 or earlier in 2026.
Do combi-boilers qualify for the rebate?
Yes, as long as the boiler is Energy Star and heats at least the home’s domestic water, it qualifies for the rebate.
Is there a limit to how many installer checks I can claim?
No, there is no cap to the amount of checks an installer can claim in one year. Complete applications must be secured within 60 days of installation.
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.
The furnace and/or water heater I am installing has a heat pump attached. Do I qualify for the rebate?
No, any combined/dual-fuel furnaces and combined dual-fuel water heaters are excluded from the rebate program. Propane appliances attached to heat pumps are not eligible for this rebate.
Can the rebate be combined with utility incentives or federal tax credits?
Yes, the rebate amount can be stacked with other utility, state, and federal incentives.
Questions Pertaining to Installation:
I installed new propane water heaters and furnaces earlier this year. Can I go back and submit applications for those installs?
Yes, however, rebate applications must be submitted within 60 days of the completed install. Applications submitted outside this timeframe will be denied.
I switched out an old propane water heater and/or furnace for a new Energy Star propane unit(s) for a customer. Do I qualify for the rebate?
No, there are no rebates for homeowners or installers to replace an old propane unit with a new one.
I’m a licensed installer doing an installation in my own residence 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 sub-contracted through a builder, but installed a new Energy Star propane furnace and/or water heater in the new home. Can I qualify for the rebate?
For new-build homes, the builder or installer qualifies for the rebate even though the work is subcontracted out. However, it is up to the builder to decide who receives the check.
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 water heater or furnace, and new line documentation must be provided with a completed application and receipt of purchase/ invoice.
I installed a new Energy Star propane furnace and/or water heater in a cabin in Michigan, but my customer’s primary residence is in a different state. Does my customer and I still qualify for the rebate?
Yes, fill out section 3 with your customer’s primary address, but also make sure to include the installation address on the invoice.
Can the installer perform the Propane Safety Inspection (Section 4) that is required for the rebate?
Yes, as long as you, the installer, are licensed in Michigan, you can complete Section 5 of the application and sign at the bottom along with the homeowner’s signature.
Do I need to be a licensed installer to complete the Propane Safety Inspection (Section 5)?
Yes, you must be licensed by the state of Michigan to perform the Propane Safety Inspection (Section 5). If you are not licensed, then the homeowner’s propane company must come out and perform the Propane Safety Inspection.
My installation company is not in Michigan, but my customer lives in Michigan. Do I qualify for the rebate?
Yes, installers do not need to reside in Michigan to claim a rebate, but Homeowners must reside in Michigan.
My customer is installing two qualifying propane furnaces in a new construction. Can I qualify for two rebates?
Yes, you and your customer qualify for two rebates each, provided the application and invoice clearly state that two furnaces were installed.
Questions Pertaining to Submission:
What is “Proof of a New Propane-Line or New Tank”?
This is a document that should be provided by the propane provider. Most often, this is a Propane Work Order that details trenching a new propane line from an existing propane tank to your new appliance. If this is a new build or the home is new to propane, the work order should detail the installation of a new propane tank on the homeowner’s property. It is required for the rebate.
What qualifies as “Proof of Energy Star?”
Proof of Energy Star can be a picture of the Energy Star label on the unit, or a copy of the unit’s specifications showing the AFUE or UEF rating. It is required for the rebate.
Is there a deadline to submit my rebate application to receive my check?
Yes, rebate applications must be submitted within 60 days of the completed install. Applications submitted outside this timeframe will be denied.
Is there a separate form that I need to fill out to receive the Installer Incentive?
No, if the homeowner qualifies for the rebate, a check will be automatically issued to the installer listed in Section 3 of the application.
How soon will I receive my check after the application is submitted?
It may take 10-12 weeks from the time your application is processed and then approved before you receive a check by U.S. mail.
How soon do I need to cash my check after I receive it?
Any checks not cashed within 90 days will expire and will not be reissued.
Lost checks will also not be reissued.
Does the installer’s check get written to the installing company or to the person installing the unit?
The check is made out to the installing company.
How do I send the application to the Michigan Propane Commission?
You can fill out our online application, email, fax, or mail the application to the Commission. Contact information needed for application submission is located at the bottom of page 2 of the application.