Grand Rapids / Ann Arbor

Heat pump installation in Ann Arbor, MI - up to $1,500 rebate

Ann Arbor in numbers

Ann Arbor has 122,036 residents (give or take 55) (ACS 2020-2024 5-year, table B01003, https://data.census.gov/table/ACSDT5Y2024.B01003?g=160XX00US2603000, checked 2026-10-19), about 4,299 people per square mile.

Ann Arbor is about 109 miles from the Census center point for Grand Rapids in a straight line and covers 28.387 square miles of land (Census 2024 Gazetteer internal points and land area, https://www2.census.gov/geo/docs/maps-data/data/gazetteer/2024_Gazetteer/, checked 2026-10-19).

The quote form takes a ZIP code; for Ann Arbor that is 48104, 48108, 48109 (Census 2020 ZCTA to county subdivision and ZCTA to place relationship files, ZIP areas at least 20% inside the town, https://www2.census.gov/geo/docs/maps-data/data/rel2020/zcta520/tab20_zcta520_cousub20_natl.txt and https://www2.census.gov/geo/docs/maps-data/data/rel2020/zcta520/tab20_zcta520_place20_natl.txt, checked 2026-10-19).

Median household income in Ann Arbor is $82,212 (ACS 2020-2024 5-year, table B19013, https://data.census.gov/table/ACSDT5Y2024.B19013?g=160XX00US2603000, checked 2026-10-19); many state and utility heat pump rebate programs set higher incentive tiers for income-qualifying households, so the household income on the application, not the town median, decides which level applies.

4,299 people per square mile puts Ann Arbor in suburban density, where the outdoor unit usually sits in a side yard and the noise is not an issue for neighbors.

Multi-family first

42% of Ann Arbor homes are single-family detached, 9% are in two- to four-unit buildings and 37% are in buildings of five or more units (ACS 2020-2024 5-year, table B25024, https://data.census.gov/table/ACSDT5Y2024.B25024?g=160XX00US2603000, checked 2026-10-19).

55% of Ann Arbor homes are rented (ACS 2020-2024 5-year, table B25003, https://data.census.gov/table/ACSDT5Y2024.B25003?g=160XX00US2603000, checked 2026-10-19), so beside the 42% detached houses there is a real share of jobs where the landlord, not the resident, signs the quote.

Ann Arbor has 15 points fewer detached houses than Washtenaw County overall (57%) and 11 points more five-plus-unit buildings than the county's 26% (ACS 2020-2024 5-year, table B25024, https://data.census.gov/table/ACSDT5Y2024.B25024?g=050XX00US26161, checked 2026-10-19).

55% of Ann Arbor homes are rented (ACS 2020-2024 5-year, table B25003, https://data.census.gov/table/ACSDT5Y2024.B25003?g=160XX00US2603000, checked 2026-10-19), so the market splits between resident-led jobs where the occupant picks the system and landlord-led jobs where they do not, and the rebate paperwork differs.

Heating fuel in Ann Arbor

Of the 50,499 occupied homes in Ann Arbor, 71% heat with natural gas, 0% with heating oil, 26% with electricity and 2% with propane (ACS 2020-2024 5-year, table B25040, https://data.census.gov/table/ACSDT5Y2024.B25040?g=160XX00US2603000, checked 2026-10-19).

Gas heats 71% of Ann Arbor against electricity at 26%, so most quotes here are a partial-home system that carries the shoulder seasons and the summer while the gas furnace handles the coldest nights, or a whole-home system when the house is ready for it.

Ann Arbor has about the Washtenaw County oil share of 1% and 7 points more electric heat than the county's 19% (ACS 2020-2024 5-year, table B25040, https://data.census.gov/table/ACSDT5Y2024.B25040?g=050XX00US26161, checked 2026-10-19).

Your utility and the rebate

No electric utility is on file for Ann Arbor on this door yet, so this page does not name one; the name on the bill decides which rebate path applies.

DTE Energy heating and cooling rebates (southeast Michigan only), run by DTE Energy, is a live program for Michigan addresses and covers qualifying equipment at $1,500 per system (registry row 19 verified 2026-10-15, https://www.dteenergy.com/us/en/residential/save-money-energy/rebates-and-offers/air-conditioners.html, checked 2026-10-16); confirm eligibility for the Ann Arbor address before counting it. With 26% of Ann Arbor homes already on electric heat and 73% on gas, oil or propane, the row that applies depends on the name on the electric bill and the fuel coming out.

Consumers Energy Home Solutions 2026 (ASHP), run by Consumers Energy, is a live program for Michigan addresses and lists a standard figure of $300 (registry row 50 verified 2026-10-15, https://www.consumersenergy.com/residential/savings-and-clean-energy/rebates/heating-and-cooling, checked 2026-10-16); confirm eligibility for the Ann Arbor address before counting it.

Age of the stock

Ann Arbor has 54,399 housing units, 15% built before 1940 and 63% before 1980, with 16% built in 2000 or later (ACS 2020-2024 5-year, table B25034, https://data.census.gov/table/ACSDT5Y2024.B25034?g=160XX00US2603000, checked 2026-10-19).

Ann Arbor has 3 points more pre-1940 homes than Washtenaw County as a whole (12%) and 6 points fewer homes built after 2000 than the county's 22% (ACS 2020-2024 5-year, table B25034, https://data.census.gov/table/ACSDT5Y2024.B25034?g=050XX00US26161, checked 2026-10-19). An older stock means more insulation upgrades before the heat pump goes in.

The median Ann Arbor home was built in 1971 (ACS 2020-2024 5-year, table B25035, https://data.census.gov/table/ACSDT5Y2024.B25035?g=160XX00US2603000, checked 2026-10-19) and the median home has 5 rooms (ACS 2020-2024 5-year, table B25018, https://data.census.gov/table/ACSDT5Y2024.B25018?g=160XX00US2603000, checked 2026-10-19).

63% of Ann Arbor homes were built before 1980 and only 16% in 2000 or later (ACS 2020-2024 5-year, table B25034, https://data.census.gov/table/ACSDT5Y2024.B25034?g=160XX00US2603000, checked 2026-10-19), so most of the stock predates modern insulation codes; the installer's heat-loss calculation, not a square-footage rule, decides the tonnage.

Sizing for Washtenaw County

Heating design temperature: 3F. Source: ENERGY STAR Design Temperature Limit Reference Guide (2019 Edition), Washtenaw County row, 99% heating, PDF pages 56 to 60 of 141 (Revised 11/11/2020), https://www.energystar.gov/sites/default/files/Design%20Temperature%20Limit%20Reference%20Guide%20(2019%20Ed)%20-%20ENERGY%20STAR%20Single-Family%20New%20Homes_Rev11.pdf, fetched 2026-10-19, 99%.

That 3F figure is the Washtenaw County cold-day number a Ann Arbor heat pump is sized against, so ask the installer to show the system's heating output at 3F, not at the milder rating-label temperature.

Next step

Ask whether the quote is whole-home or partial-home, because with 71% of Ann Arbor on gas and 26% already electric the two paths carry different rebate figures and different sizing.

Ask for the heat-loss calculation room by room; the median Ann Arbor home has 5 rooms and was built around 1971, and the count of heads and the tonnage follow the rooms and the insulation, not the square footage.

The form on this page is the follow-up for Ann Arbor. The public number is the number the contractor quotes from.

No local contractor is named on this door for Ann Arbor yet. A request from this page goes to the first licensed shop that takes the door.

Where should the follow-up go?

We will follow up by email. No calls.

No spam, no sold information. One follow-up about exactly this request.