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Heat Pump Rates and Rebates

Heat pumps offer an energy-efficient alternative to air conditioners and furnaces. Like your refrigerator, heat pumps use electricity to move heat from a cool space into a warm space, making the cool space cooler and the warm space warmer. During the cooling season, heat pumps move heat from your cool house into the warm outdoors; during the heating season, heat pumps move heat from the cool outdoors into your warm house. Because they move heat rather than generate heat, heat pumps can provide up to 4 times the amount of energy they consume. Learn more about rate discounts

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When heat pumps are installed as the primary source of heat in your home, you may qualify for a lower electric rate for the energy your heat pump uses.

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Heat Pump Types

Air-Source Heat Pumps

The most common type of heat pump is the air-source heat pump, which transfers heat between your house and the outside air. During the winter months, the air-source heat pump can operate below freezing temperatures, but a secondary heating system, such as a gas furnace will need to supplement the heat pump when temperatures become too cold.

Air-source heat pumps qualify for our lower electric rate and you can qualify for a rebate of $250 after installation if your system meets our minimum requirements. In addition, air-source heat pumps are also affordable to install and may qualify for an Energy Optimization incentive. They are a viable alternative to central air conditioning and a way to save on heating costs during moderately cold weather.

Geothermal Heat Pumps

Geothermal heat pumps use the natural resources of the earth to provide high-efficient, even and comfortable heating and cooling for your home.

Michigan ground temperature is constant and remains around 50 degrees Fahrenheit at a certain level underground. Geothermal systems include a continuous loop of polyethylene pipe buried in the ground outside the home that is filled with water and environmentally-friendly antifreeze. The solution going through the loops extract the heat from the ground to warm the house in the winter and it is cooled in the summer to cool the house.

Geothermal can provide operating cost savings of 30-60 percent, but can be twice as much to install as other types of heating and cooling systems.

The efficiency of a geothermal heat pump can be higher than 400%, meaning for every dollar you spend on electricity to operate the heat pump, you get four dollars back in energy. Compared to gas furnaces that are typically around 90% efficient, you can see why geothermal is so cost effective to operate.

Geothermal heat pumps qualify for our lower electric rate and you can qualify for a rebate of $500 after installation if your system meets our minimum requirements.

More Information

Michigan Geothermal Association
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Energy Star

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Geoexchange Heat Pump Consortium

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Department of Energy

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Great Lakes Energy does not sell or install heat pumps.
Visit the Michigan Geothermal Association website above to locate a dealer.

Heat Pump Reference Guide – provides comprehensive information on
operation, installation and purchase of a heat pump

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