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Heat Pump Incentive

What is a heat pump?

Heat pumps are an energy-efficient, all-electric option for heating and cooling your home or business, and modern cold climate heat pumps are designed to perform well even in Northern Michigan’s frigid winters. Learn the basics below and see why more customers are making the switch! 

A heat pump is a highly efficient system that provides both heating and cooling using electricity — no fossil fuels needed. Instead of generating heat like a furnace, it moves heat from one place to another. In the winter, it pulls heat from the outside air (even when it’s cold!) and brings it inside. In the summer, it works in reverse, removing heat from your home to keep you cool.

Modern cold-weather heat pumps have advanced technology that allows them to maintain reliable heating at temperatures well below freezing.

What about heat pump water heaters?

Heat pump technology isn’t just for heating and cooling your space – it can also heat your water. Heat pump water heaters use the same efficient process of moving heat rather than creating it. Instead of using electric resistance elements or burning gas, they pull heat from the surrounding air and transfer it into the water tank.

Because they move heat instead of generating it, heat pump water heaters can use 60–70% less electricity than standard electric models. They also help reduce greenhouse gas emissions, especially when paired with clean or renewable electricity.

Heat pump water heaters work best in spaces like basements, utility rooms, or garages where there is some available air to draw heat from.

For many homes and small businesses, a heat pump water heater is one of the most cost-effective ways to start electrifying and lowering energy use.

HOW TO CLAIM YOUR INCENTIVE

Here’s what you’ll need to complete your application:

  • Your electric account number
  • A copy of your receipt or invoice showing:
    • Model information
    • Proof of full payment
    • Date of purchase

Once you’ve gathered the required documents, complete the application below and be sure to upload all necessary files at the end of the form. 

After submission, your incentive check will be mailed within 6–8 weeks.

Incentive Application

Questions? We’re here to help! Contact customer service at 231-922-4940. 

How does a heat pump work?

Think of a heat pump like a two-way air conditioner. It uses a refrigerant cycle and an electric compressor to transfer heat rather than create it. In heating mode, the pump extracts heat from the outside air or ground and moves it indoors. In cooling mode, it removes heat from inside your home and releases it outside.

Modern cold climate air-source heat pumps are specially designed to operate efficiently in temperatures well below freezing. Many systems now use variable-speed compressors and improved refrigerants to maximize comfort in our Northern Michigan winters.

Why choose a heat pump?

Lower energy usage: Heat pumps can be up to three times more efficient than conventional heating systems. Paired with TCLP’s Time of Use Rates, this could mean energy cost savings as well.

Climate-friendly: By running on electricity, heat pumps help reduce greenhouse gas emissions — especially as TCLP continues to progress towards our clean grid commitments.

All-in-one comfort: A single system provides both heating and cooling, keeping you comfortable year-round.

Reliable cold-weather performance: Cold-weather models deliver steady heat even on the coldest days.

Cleaner indoor air: Heat pumps don’t burn fuel, so there’s no risk of carbon monoxide.

Incentives: TCLP offers significant incentives to make cold climate heat pumps more affordable.

What kind of heat pump is right for me?

There are a few main types:

  • Cold climate ducted air-source heat pumps: A good choice for homes with existing ductwork in good condition, these extract heat from the outside air even in very low temperatures and distribute the conditioned air throughout the entire home or building.
  • Ductless mini-splits: Perfect for homes without ducts or for heating and cooling individual rooms or additions. Ductless mini-splits offer easy installation and can often be a more affordable way to electrify your space conditioning.
  • Ground-source (geothermal) heat pumps: These use the steady underground temperature for maximum efficiency year-round, but often have higher upfront costs.

A qualified contractor can help you choose the right size and model for your home, climate, and budget.

Heat pump efficiency tips

Set it and forget it

Cold climate heat pumps work best when they maintain steady temperatures. Avoid frequent thermostat changes.

Use backup heat wisely

If you have a supplemental heat source, use it only when needed to keep your system efficient.

Keep filters clean

Check and replace filters regularly to maintain airflow.

Clear outdoor units

Make sure the outdoor unit stays free of snow, ice, or debris.

Schedule regular maintenance

Annual tune-ups help your system run smoothly and efficiently, even through harsh winters.

Additional Sources