Thousands of Michigan residents will see a $250 credit on their utility bills starting January 1, 2026, thanks to a new statewide initiative aimed at helping low-income families cover winter heating costs. Backed by Consumers Energy and the Michigan Department of Treasury, this automatic relief is coming just in time for the coldest months—and the best part? You don’t even have to apply or file taxes to get it.
If you’re struggling to keep up with heating bills, here’s what you need to know about the new energy assistance plan and other resources available this winter.
Credit
Let’s start with the big one: the $250 energy assistance credit.
This one-time credit will show up automatically on the accounts of qualifying Consumers Energy customers starting in early 2026. You won’t need to submit an application or file your taxes. If your household income is below 100% of the federal poverty level, and you’re a Consumers Energy customer, you’re likely eligible.
This direct credit is part of a broader statewide push to help low-income families avoid energy debt and keep homes warm as temperatures drop. The idea is simple—if you qualify, you get the credit.
But what if you’re not sure about your eligibility? You can file a claim with the Michigan Department of Treasury to update your income or household information. Officials stress, though, that no tax filing is needed for this specific benefit.
CARE
The $250 credit is helpful, but it’s not the only option for support.
Consumers Energy also offers a longer-term solution through the CARE program—short for Consumers Affordable Resource for Energy. This program is designed to make utility bills manageable month after month, not just once a year.
Here’s how it works:
| Feature | CARE Program Benefit |
|---|---|
| Duration | 24-month plan |
| Monthly Payment | Fixed, affordable |
| Past Due Balance Support | Included if on-time |
| Eligibility Income Level | ≤ 60% of State Median Income |
| Type of Service | Gas or Electric |
| Must Be Primary Residence | Yes |
If you’re approved, CARE sets you up with a fixed monthly payment for 24 months, which can really help with budgeting. Plus, it helps cover past-due balances as long as you stay current on your new plan.
To qualify, your account must be tied to your primary residence, and your income must be at or below 60% of Michigan’s State Median Income. If your account has past problems—like theft, fraud, or bankruptcy—you might be disqualified unless those issues are already resolved.
Another plus? The CARE program may include free home energy efficiency upgrades. Think insulation, efficient appliances, and more—helping you save money for years to come.
Support
Beyond CARE and the one-time credit, Michigan offers other forms of energy assistance through both state and federal programs.
Many of these are supported by LIHEAP (Low Income Home Energy Assistance Program), which funds energy bill relief and emergency grants. If you’re in immediate danger of a shutoff or can’t pay your overdue balance, help may be available through:
- State Emergency Relief (SER):
- Up to $600 for electric or gas bills
- Up to $900 for all-electric homes
- For households up to 150% of the federal poverty line
These are one-time payments, but they can be lifesavers when bills start to pile up.
And if you don’t know where to start? Call 2-1-1, a free helpline that connects you with local nonprofits offering energy aid, application assistance, and more.
Equity
State officials have made it clear: this initiative isn’t just about keeping homes warm—it’s about equity.
Consumers Energy is making a push to reach vulnerable residents who are often left behind in the process. By automating credits and making payment plans more accessible, the goal is to keep more families secure, comfortable, and stress-free during the winter.
But there’s a catch—funding is limited. So if you’re unsure whether you qualify, now’s the time to act. Check your income levels, reach out for help, and get ahead before the snow falls.
FAQs
Who gets the $250 energy credit?
Consumers Energy customers under 100% of the federal poverty line.
Do I need to apply for the $250 credit?
No, it’s automatic for eligible residents—no application needed.
What is the CARE program?
It’s a 24-month fixed utility payment plan for low-income customers.
Can I get help for past due energy bills?
Yes, through SER or CARE, depending on eligibility and status.
What number should I call for help?
Call 2-1-1 for utility assistance and program info statewide.
