Alaska Heat Smart has partnered with the True North Federal Credit Union to provide low-cost loans for heat pump installations in Juneau. Loan amounts for qualified borrowers are up to $12,500 for up to 60 months with rates starting at 4%.*
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.
*Rate and terms on approved credit, conditions apply and are subject to change without notice.
To apply for the Heat Pump Loan, applicants will need to:
- Receive a Heat Pump Assessment report. This is an important first step and the report is REQUIRED by TNFCU.
- Click on the link below.
- Under “Loan Type”, choose “Personal Loan.”
- Under “Loan Amount,” choose an amount of up to $12,500.
- Under “Loan Term,” choose an amount of up to 60 months.
- Under “Loan Purpose,” choose “Heat Smart Referral.”
- Once in contact with a loan officer, provide them with your Heat Pump assessment report to confirm your eligibility.
NOTE: We have heard reports that once the application is submitted, a loan acceptance confirmation is returned indicating that you have been approved for a loan at a rate of 11%. Please disregard this notice and work with the loan officer that reaches out to you. This issue will hopefully be corrected shortly!