Heat Pump Loan Program

Alaska Heat Smart has partnered with the True North Federal Credit Union throughout the ACES program region and Tongass Federal Credit Union in Sitka to provide low-interest loans for heat pump installations. This unique program offers a way for homeowners to manage the upfront costs of heat pump installation so that they can begin saving right away!

Qualifying for a heat pump incentive from Alaska Heat Smart was fantastic news! What really made my heat pump project work was adding a low interest True North FCU loan to help cover the cost. I qualified at 4% interest, meaning that my $6,000 loan would only run me about $12/month in interest! The loan allowed me to move ahead with pretty much no money out of my wallet! 

Dan R., Douglas, AK

Without the loan, I wouldn’t have been able to buy my heat pump and start saving heating bill money. This is the thing with heat pumps…you have to buy it to start saving! I only had half the cost and a TNFCU short term, low interest loan made it happen. This winter’s fuel savings were easily over $100 a month from last winter!

Ernastine J., Juneau, AK

In a nutshell, the interest paid on this loan will be far less than the heating bill savings realized by utilizing the loan for the purchase and installation of an air source heat pump. For example, a $5,000, five-year loan, at 4% interest, would result in an approximate monthly payment of $100 and total interest paid over the lifetime of the loan of approximately $500. That interest total equates to only about $8 each month! A $500 to $1000 annual heating bill savings from a heat pump addition is not uncommon, suggesting that this loan will not only ease the up-front burden of heat pump purchase and installation, but provide a range of $400 – $900 savings annually over the life of the loan. Once paid in full, the savings only go up.