What a heat pump does when it is 5 F outside
ENERGY STAR says an air-source heat pump can deliver up to three times more heat energy to a home than the electrical energy it consumes. The cold climate label requires third-party tested performance down to 5 F, and the same page advises pairing the heat pump with a back-up energy source at lower temperatures.
Ask a contractor for the back-up in writing; the heat pumps in Michigan winters guide lists the questions.
Heat pump installation costs in Michigan: what we can cite
Our estimate for this job in Michigan is $3,675 to $8,900 per installed heat pump. It is a model, not a quote, built from one national published cost range, widened by 15 percent each side, and adjusted by Michigan's wage ratio to the US (1.00), with a typical permit fee added for the work.
Once we have collected enough of the prices Michigan heating and cooling companies publish on their own sites, they will appear in this table with the number of companies and the date we read them. The heat pump installation cost guide explains what moves a quote.
| Item | Figure | What it is |
|---|---|---|
| Estimated range, not a quote | $3,675 to $8,900 per installed heat pump | Built from one national published range, adjusted by the Michigan HVAC technician wage ratio (1.00) plus a typical permit fee ($105). |
| HVAC mechanic and installer wage, Michigan mean | $31.01 an hour | What Michigan heating, air conditioning and refrigeration mechanics and installers are paid (BLS, May 2025), not what you are charged. |
| Grand Rapids permit, replacement heat pump | $21.00 plus $52.00 application | City schedule effective July 1, 2026; one inspection included. |
| State permit, split heat pump | $30 plus $75 application | Only where LARA enforces the code. |
| Annual heating and cooling energy cost | $1,271 at 14.3 SEER2 and 7.5 HSPF2; $1,210 at 15.2 and 7.8 | DOE FEMP, northern states, federal energy prices, not a Michigan bill. |
| DTE cold climate heat pump rebate | $900, $1,000 or $1,200 | Electric customers replacing electric heat; funds limited; read Oct 19, 2026. |
How we estimate costs: the figures here are estimates, not quotes, built from BLS wages, published city permit fees and federal energy-cost evidence. We are collecting the prices Michigan heating and cooling companies publish; we have not yet collected quotes from them, and we will say how many and from when once we do. Estimated range. Built from national published ranges (1 source), adjusted by Michigan's HVAC technician wage ratio to the US (1.00, BLS May 2025), plus the local permit fee where the city publishes one. Not a quote. We have too few Michigan company prices yet to show a range. Full method. Prices as of Oct 19, 2026.
How cold your county runs, in degree days
Heating degree days add up how far each day's average falls below 65 F. NOAA's 1991 to 2020 normals give about 6,067 at Detroit Metro airport, 6,408 at Grand Rapids and 7,104 at Traverse City. The Department of Energy's county table puts Wayne, Kent and Washtenaw counties in IECC climate zone 5 and Grand Traverse County in zone 6. A house in Traverse City asks more of its back-up heat than one in Detroit.
SEER2, HSPF2 and the federal floor
Since 2023 a split-system heat pump must meet 14.3 SEER2 and 7.5 HSPF2 under federal rules. SEER2 rates cooling and HSPF2 rates heating, so in Michigan read the HSPF2 first. The system size estimator explains what a load calculation is for.
Rebates and credits as of October 19, 2026
DTE's cold climate heat pump rebate has three tiers on its page, $900, $1,000 and $1,200, and applies only to electric customers replacing electric heating. Consumers Energy pays $300, but only to replace an existing heat pump, and its chart covers installs through December 31, 2026 with amounts that can change without notice.
In Lansing, Board of Water & Light electric customers can get $4,000 for a heat pump replacing a gas furnace and central AC, with a Manual J required. Ann Arbor's A2ZERO lists up to $5,500. MiHER's income-qualified rebates are suspended for new applications in the Detroit, Warren, Grand Rapids, Lansing and Kalamazoo districts. Start with the rebate finder and the DTE and Consumers rebate guide.
The IRS says the federal 25C credit ended for property placed in service after December 31, 2025. ENERGY STAR's heat pump page still advertises a credit through 2032. The pages contradict each other, and we follow the IRS.
Refrigerant rules that touch a new system
Anyone who adds or removes refrigerant needs an EPA Section 608 credential. EPA limits new residential heat pump systems to a global warming potential of 700 from January 1, 2025. A May 2026 EPA rule lets systems made before 2025 be installed until supply runs out; we did not read its effective date. Ask which refrigerant the unit uses.
No heat in winter: when to call now
- The house has no heat in freezing weather.
- You smell gas, or a carbon monoxide alarm is sounding.
- The unit smells of burning or keeps tripping a breaker.
- You are planning a heat pump for next season.
- The current system works and you want quotes to compare.
What to gather before you ask for quotes
- Find out what heats the house now, because DTE's heat pump rebates are for electric customers replacing electric heating.
- Ask each company for a written load calculation; Lansing and Ann Arbor require a Manual J.
- Ask what the back-up heat is.
- Ask who pulls the permit, and check the license number on LARA.
Permits and licensing for a heat pump in Michigan
LARA says mechanical work cannot start until a permit is issued, except for replacement of minor parts. Its exemption list names portable equipment under 30,000 Btu/hr and window air conditioners of not more than 1.5 hp, so a heat pump replacement needs a permit; that is our reading, not a LARA sentence. The Michigan Mechanical Code is the 2021 International Mechanical Code, and a 2024 edition is proposed.
A mechanical contractor's license under Article 8 of 2016 PA 407 is required, and the license holder pulls the permit. Which class covers a heat pump is our inference. Ask for the license number and check it on LARA's lookup. An owner-occupant of a single-family home may install their own system with a permit and an inspection. See the mechanical permit guide.
Ask for the license number and check it with your state's licensing board before any work starts. Our state pages link the lookup.
- Grand Rapids mechanical permit fee schedule Read Oct 19, 2026.
- LARA (state) mechanical permit fee schedule Read Oct 19, 2026.
- EPA: Section 608 Technician Certification Requirements Read Oct 19, 2026.
- LARA BCC: Mechanical Permit Information Read Oct 19, 2026.
- Mich. Admin. Code R. 408.30901a (Cornell LII) Read Oct 19, 2026.
- LARA BCC: Currently Open Rules Read Oct 19, 2026.
- MCL 339.5801 (Michigan Legislature) Read Oct 19, 2026.
- MCL 339.5809 Read Oct 19, 2026.
- MCL 339.5807 Read Oct 19, 2026.
- MCL 339.5819 Read Oct 19, 2026.
- LARA BCC Mechanical FAQs (PDF) Read Oct 19, 2026.
A tool for this job
Rebate and tax-credit finder
Pick your utility, your equipment and your household, and the finder shows each program's status with the date we checked it, October 19, 2026. Federal credits 25C and 25D ended for property placed in service after December 31, 2025, according to the IRS, even though ENERGY STAR's heat pump page still advertises one. It prints no amount without its program, tier and date.
Open the toolQuestions people ask
Do heat pumps work in Michigan winters?
Cold climate models are tested down to 5 F, with a back-up advised below that. ENERGY STAR states this and names no other cold-climate figures. Ask what heats the house on the coldest nights.
How much does it cost to install a heat pump in Michigan?
We have not collected Michigan quotes, so the first row of the cost table is a statewide estimate, a model and not a quote. Compare written quotes that name the model, the back-up heat and who pulls the permit.
Is there a federal tax credit for a heat pump in 2026?
No, according to the IRS. The 25C credit covered property placed in service through December 31, 2025. ENERGY STAR's page still lists a credit through 2032, which contradicts the IRS.
Does a heat pump installation need a permit in Michigan?
Yes, in our reading of LARA's exemption list. Replacement is not among the exemptions. Check your own city's fee schedule.
Can I install a heat pump myself in Michigan?
Only an owner-occupant of a single-family home may, with a permit and an inspection. Handling refrigerant also needs an EPA Section 608 credential.
- U.S. Bureau of Labor Statistics, OEWS May 2025: heating, air conditioning and refrigeration mechanics and installers (SOC 49-9021), Michigan statewide Read Oct 19, 2026.
- DOE FEMP: Purchasing Energy-Efficient Residential Air-Source Heat Pumps Read Oct 19, 2026.
- DTE Air Conditioners Read Oct 19, 2026.
- ENERGY STAR: Air-Source Heat Pumps Read Oct 19, 2026.
- NCEI U.S. Climate Normals 1991-2020 annual/seasonal (data service) Read Oct 19, 2026.
- NCEI U.S. Climate Normals 1991-2020 annual/seasonal (data service) Read Oct 19, 2026.
- NCEI U.S. Climate Normals 1991-2020 annual/seasonal (data service) Read Oct 19, 2026.
- Building America Best Practices Series Vol. 7.3 Guide to Determining Climate Regions by County (PNNL) Read Oct 19, 2026.
- eCFR 10 CFR 430.32 Read Oct 19, 2026.
- Home Solutions 2026 Qualifying Measures and Incentive Levels (res-programs.pdf) Read Oct 19, 2026.
- BWL Electrification Programs / Plug-in Electric Vehicles (lbwl.com) Read Oct 19, 2026.
- A2ZERO Rebates | City of Ann Arbor Read Oct 19, 2026.
- EGLE Home Energy Rebates (plus /get-rebate and FAQ pages) Read Oct 19, 2026.
- IRS Energy Efficient Home Improvement Credit Read Oct 19, 2026.
- EPA: HFC Restrictions by Sector Read Oct 19, 2026.
- EPA fact sheet: Technology Transitions final rule (May 2026) Read Oct 19, 2026.
- DTE Energy: Natural Gas Emergency Read Oct 19, 2026.
- DTE Energy: Home Safety (gas) Read Oct 19, 2026.
- HVACMatch: how we estimate costs (editorial policy) Read Oct 19, 2026.