Clean Heat Incentive Program – Juneau

Heat Pump Financial Assistance for Lower to Modest Income Juneau Homeowners

Alaska Heat Smart’s Clean Heat Incentive Program (CHIP) is courtesy of Alaska’s Senator Lisa Murkowski. A $420,000 ‘congressionally-directed spending’ grant, overseen by the U.S. Department of Energy, will fund up to 200 heat pump incentives. This homeowner assistance will enable lower income to modest income family homeowners make the increasingly popular and money-saving switch from reliance on fossil fuel heating to local and super-efficient air source heat pump heating.

Our Clean Heat Incentive Program will do the following for qualified homeowners:

  • Reduce dependence on and exposure to fossil fuels and carbon monoxide, and reduce the risk of fuel spills and contamination
  • Improve and upgrade home heating and lower home heating costs
  • Help finance the purchase and installation costs of adding an air source heat pump to your home
  • Provide between $1,500 and $3,000 towards purchase and installation costs, in accordance with a sliding scale dependent upon overall household income
  • Allow you to apply for True North Federal Credit Union’s low interest heat pump loan in order to cover remaining project expenses

Our Clean Heat Incentive Program will not:

  • Help finance the purchase of an electric vehicle. This is a home heating incentive program only.
  • Prohibit you from receiving a heat pump tax credit of up to $2,000 on your 2023 federal tax return

Eligibility Requirements:

A successful applicant must:

  • Own your Juneau, Alaska home
  • Complete a free Alaska Heat Smart home heat pump assessment
  • Have a combined household income that does not exceed 125% of Juneau’s median area income (see table below)
  • Provide all required application documentation (see ‘required supporting information’ below)
  • Apply an incentive award to the first heat pump in the residence
  • Install a heat pump that meets cold climate standards and is one of the following models: Daikin Aurora, Daikin Atmosphera, Mitsubishi ‘Hyper Heating’ M or P series, Fujitsu ‘AOU’ series, or other cold climate models
Family Size123456
125% MAI Income$97,813$111,797$125,580$139,464$150,696 $161,850
Source: https://www.huduser.gov/portal/datasets/il/il2022/2022summary.odn

Required Supporting Information:

  • Please do not email personal income files to Alaska Heat Smart. You will be provided a secure portal link to share with us the following documents:
  • Application form, fully completed, ‘signed’ by the homeowner or applicant
  • Driver’s license or state identification card for household members 18 and over
  • Birth certificate or legal ID for dependents 17 and under
  • One (1) most recent checking/saving bank statement for each account held in the household by those 18 and over
  • One (1) month of most recent paycheck stubs for all jobs held in the previous year (all wage earners 18 or over)
  • Two (2) years of most recent federal tax returns if self employed
  • Account balance statements from PERS, TRS, deferred compensation, 401k accounts, or other retirement holdings (if applicable)
  • Current social security/disability award letter (if applicable)
  • Current pension/annuity letters (if applicable)
  • Proof of school registration (for children attending college who reside in the home when not at school) (if applicable)
  • Court-ordered child support statement (if applicable)
  • Unemployment income (if applicable)

How the Incentive Program Works:

This is an incentive program, not a rebate program. This works to your advantage in that you do not need the money on hand to cover the total project cost in order to proceed with adding a heat pump to your home. Once you have completed an Alaska Heat Smart home heat pump assessment, been approved for your incentive, and received your incentive certificate from Alaska Heat Smart, you may seek out project quotes from the contractors listed on our website.

When you receive a contractor’s quote that you wish to accept, send Alaska Heat Smart a copy of the quote and proceed to start work with your contractor. Alaska Heat Smart will provide you an incentive certificate that you will share with your contractor. You will be billed by the contractor only for that portion of the project cost that is above the incentive amount indicated on your certificate. The Heat Pump Incentive Program will pay the incentive amount to the contractor directly. So, if you’re quoted $7,500 for a heat pump and your incentive is $3,000, you will only be billed for $4,500. Alaska Heat Smart will pay the contractor $3,000.

Additional Financial Assistance:

True North Federal Credit Union and Alaska Heat Smart have joined together and created a low-interest heat pump loan, with interest rates between 4 and 6%. With your AHS home heat pump assessment report and a successful loan application, your after-incentive project balance can be covered by this loan. A $7,500 loan at 4% paid back over 5 years costs only $16 each month in interest payments. This payment will be much less than the average monthly savings you’ll realize from the addition of your heat pump to your home!

The Clean Heat Incentive Program application will be available online. If you are unable to use an online system you can call us at 907-500-5050 and we will help you over the phone complete an application.

Please email all required documentation to info@akheatsmart.org. Or, mail hard copies of your required documentation to:

Alaska Heat SmartCHIP
P.O. Box 20912
Juneau, Alaska 99802