Residential Electrification

What Is Electrification?

The future is electric, and more Michiganders are hearing about electrification opportunities every day. But what exactly is electrification? Electrification refers to the process of replacing technologies that use fossil fuels (e.g., coal, oil, and natural gas) with technologies that use electricity as an energy source. The biggest contributors to carbon emissions for residential buildings are gas-fired furnaces. Replacing furnaces with heat pumps is the main goal of electrification.

If you’re interested in electrifying the fuel source in your home, we have you covered! Electrifying your home is a very effective way to reduce your carbon emissions and energy costs. We offer affordable, long-term financing that makes it easy to invest in electrifying your home.

Contractors lifting a solar panel onto the roof of a home

How Can Michigan Saves Help Me with Electrification?

We created a training for our authorized contractors to make sure they are up to date on all the latest and greatest there is to know about electrification so they can guide you on your electrification journey.

If you’re considering switching your furnace to an electric heat pump, please use our contractor locator and select Electrification from the Services list to filter search results and look for the electrification badge. All contractors who have completed the training receive a badge.

Anatomy of an All-electric Home

Solar Panels

Solar panels let homeowners produce their own power.

Insulation (attic, crawl spaces, floors, joists, and walls)

High levels of insulation minimize the effect of outside temperatures on indoor air.

Roof top with solar panels illustration
induction stove

Induction stoves are safer and healthier to use and keep kitchens cool.


Energy efficient windows insulate and reduce noise.

Smart technology

Home appliances use smart technology to increase energy efficiency and reduce costs.


Heat pump HVAC systems replace both gas furnaces and air conditioners.


Heat pump dryers are 40–50% more efficient than gas dryers.

Water heater

Heat pump water heaters pull heat from the air to heat the water.

Basement illustration
Whole-home battery storage

Batteries store energy for later use.

Electric vehicle (EV) charging stations

Electric vehicles can run off electricity generated at home.

Garage illustration with electric car parked inside

Frequently Asked Questions

What resources are available to help me?

You can find authorized contractors that specialize in energy efficiency, heat pumps, solar energy and all types of energy improvements. Michigan Saves offers affordable, long-term financing that makes it easy to invest in electrifying your home.

Is there a premium price to pay for electrifying my home?

Energy efficiency improvements are always cost-effective. If you use propane or fuel oil to heat your home, switching to a heat pump will most likely save you money.

What if my heating fuel source is natural gas?

While an electric heat pump is more efficient than a natural gas furnace, you will pay a premium to switch from a natural gas furnace to an electric heat pump. In addition, the price you pay for electricity will be more than the equivalent price you pay for natural gas. Once you install solar panels and begin producing your own electricity, the savings begin to add up.

Am I really decarbonizing my home if my utility provider’s source of electricity is coal?

Utilities have committed to carbon-free electricity production over time. While electricity can be produced with renewable sources, natural gas and propane will always emit carbon.

When is the best time to electrify my home?

You should complete the first step and install energy efficiency improvements now. The investments will pay for themselves over time and you’ll benefit from a more comfortable home. If you heat with propane, or if your air conditioner is old or inefficient, that’s a good time to replace your equipment with high-efficiency heat pumps. Solar costs have come down over the last few years, and tax incentives are still available to offset the costs, making investments in renewable energy attractive to homeowners with good solar potential.

Ready to Get to Work?

Get the energy services you need by finding a local contractor who offers Michigan Saves financing.