APPROVED: The Office of Sustainability and Innovations (OSI) proposes a temporary expansion of the Home Energy Rebate program to include new all-electric cars. Council will allocate $500,000 of Climate Action millage funds toward giving local residents and businesses discounts of up to $7,500 on brand new all-electric vehicles and up to $4,000 on used all-electric vehicles. Legistar
- The resolution explains that this is in response to the “very real economic impact” facing Ann Arbor families and businesses due to rising gas and diesel prices.
- The least expensive new all-electric vehicles appear to start at about $30,000
- https://www.motortrend.com/features/cheapest-electric-cars
- In 2024, City Council allocated $4,250,000 toward the Home Energy Rebate (HER) program, to be spent in Fiscal Years 2024-2026. The City signed a contract with “Elevate Energy” to administer the program and invoice the City for costs up to $600,000. Legistar
- In its first year (June 2024 – July 2025), the HER program provided 523 rebates adding up to a total of $676.533.44. Over a third of that total was awarded in rebates for solar storage and mini/multi-split air-source heat pump systems; the program spent $253,294.67 on 85 rebates, an average of about $3,000 per rebate. Over 15% of rebates (90) were for cargo and standard e-bikes, about 9% of funds spent ($61,490.51). Multiple rebates can be awarded to a single household.
- Higher rebates are offered to “income eligible” households, defined as 120% of AMI. Under this standard, a single person household with annual income of $104,200 is “income-qualified.” A five person household with annual income of $160,800 is also “income eligible.”
- A ten page End of Year report for the HER program – prepared by Elevate Energy and Michigan Energy Options – can be found here: link
- https://www.mlive.com/news/ann-arbor/2026/05/ann-arbor-offering-limited-time-rebates-up-to-7500-for-electric-vehicle-purchases.html
