High Heat Pump Price Tag? AHS Assistance is Here!

A man standing next to a daikin heat pump, giving a thumbs up and holding an Alaska Carbon Reduction Fund sign.

Do you live in southern coastal Alaska? Have you been dreaming of cutting your heating bills  with a heat pump? If so, keep reading to learn about two programs that can help you finance heat pump equipment and cover installation costs. 

In order to encourage residential heat pump adoption, Alaska Heat Smart (AHS) and Southeast Conference (SEC) are offering the Accelerating Clean Energy Savings (ACES) heat pump incentive program. ACES, a 5-year, $39M program, funded by the Environmental Protection Agency, is available to homeowners and renters in coastal communities from Metlakatla to Kodiak. ACES has a goal of installing 6,000 heat pumps, has no income cap, and offers reimbursement incentives of $4,000, $6,000, and $8,500 to qualifying fossil fuel or wood-heated homes. ACES has facilitated 64 heat pump installations to date with many more in progress! You can learn more about the ACES program here and find a list of eligible communities here.

In order to further support residential heat pump installation, AHS and SEC have partnered with True North Federal Credit Union (TNFCU) to offer low interest heat pump loans to homeowners and renters located within the ACES program region. Applicants can qualify for a loan up to $20,000 with interest rates as low as 4%. In a nutshell, the interest paid on this loan will likely be less than the heating bill savings realized by utilizing the loan for the purchase and installation of a heat pump. This unique loan program can help homeowners begin saving money as soon as their heat pump has been installed! 

One of the requirements for both the ACES program and the TNFCU heat pump loan is a ‘Home Energy Assessment’ from AHS. The AHS Home Energy Assessment Program offers in-person and virtual assessments to provide informative home energy consultations  for a deeper understanding of a home and its energy needs. After an assessment is complete, homeowners are provided with a detailed report that outlines options about which heat pump will work best, estimated installation costs, estimated annual savings, as well as answers to other energy questions. 

The combination of these two programs can help make the upfront costs of heat pump installations less daunting, allowing you to quickly see significant annual heating cost savings. Cut your energy costs and help us reach our goal of 6,000 heat pump installations in coastal Alaskan communities by applying to the ACES program today! 

Logos of Alaska Heat Smart, Southeast Conference, and True North Federal Credit Union displayed together.

This project has been funded wholly or in part by the United States Environmental Protection Agency under assistance agreement #84101201 to Southeast Conference (SEC). The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does the EPA endorse trade names or recommend the use of commercial products mentioned in this document.

A Look Inside Taay Hít, the Greenhouse with a Heat Pump

A geodesic dome greenhouse, known as Taay Hít, surrounded by raised garden beds planted with various vegetables, with clear skies and a nearby building.

Photo by Amy Erfling, Tlingit & Haida Regional Greenhouse Coordinator

We usually think of heat pumps for residential and commercial heating, but using them in creative ways opens up previously unimaginable opportunities. If you’ve ever tried to grow a lush garden in Southeast Alaska, you know it comes with many difficulties, but could a heat pump in a greenhouse provide a unique solution? 

In 2020, Tlingit & Haida reached out to Alaska Heat Smart (AHS) about heating Taay Hít (‘garden house’ in Tlingit), a 42’ geodesic dome greenhouse they had constructed in Juneau. Taay Hít was purchased and constructed with grants from the Bureau of Indian Affairs and Native American Agriculture Fund for Tribal food security and food sovereignty as a climate change adaptation strategy. After talking with AHS, Tlingit & Haida decided to install a two head heat pump in Taay Hít, with the goal of growing crops year-round. 

We recently reached out to Amy Erfling, Tlingit & Haida Regional Greenhouse Coordinator, to inquire about Taay Hít and how the heat pump has been working — the results were amazing! Taay Hít has been producing food for the past two years. Crops are being grown year-round in soil beds, using LED lighting over the beds in the dark winter months. 

During the warm season, crops like tomato, tomatillo, pepper, cucumber, squash, and eggplant have been grown. During the cold season, they grow things like spinach, lettuce, asian greens, turnips, and radishes. There are also year-round crops including perennials, herbs, fig trees, dwarf lemon and lime trees, and grape vines. They have even introduced ladybugs and praying mantis to keep the bugs down. Each year, Tlingit & Haida are trying out new crops to see what all is possible in the heated dome! 

During the winter months, the heat pumps are set at 50 degrees since the cool season crops are able to grow in colder temperatures. During the recent cold snap in Juneau, the temperature inside Taay Hít was in the 30-40 degree range. This was warm enough for the cool season crops to stay alive, but they weren’t growing much during the cold snap. Without the heat pump, it wouldn’t be possible to grow crops throughout Juneau’s winter months. 

Taay Hít is just one example of how heat pumps can be used to create new opportunities that wouldn’t have been possible before. It is amazing to see heat pump technology being used to enable climate adaptation strategies, like food security and food sovereignty in Southeast Alaska.

Optimizing Heat Pump Winter Performance

Mt Ben Stu_sunrise

As this sunny, cold weather challenges us all to keep warm, it’s important to ensure your heat pump is optimized to perform its best. When temperatures drop below freezing, all heating systems have to work harder to keep your home warm. It is important to stay on top of some basics and some maintenance to ensure your heat pump is running as efficiently as possible during the cold months. 

There have been a rash of concerns expressed on social media lately about heat pumps not keeping up. Note that there are many types and some are not suited for a cold winter and some are! Daikin is the most common brand in Juneau and we know of many ‘MXS’ Daikin model heat pumps that have been installed. These three letters in the model name of your outdoor heat pump compressor tell you that you do not have a cold climate unit and that it will most likely not keep up once temps drop below freezing. If you look at the name plate on your outdoor unit and see these letters in the model name, call your contractor and seek their advice.

Winter Heat Pump Tips

Below is a handful of tips and tricks for keeping your heat pump functioning properly all winter long: 

  1. Make sure your external unit doesn’t get buried or confined by snow.
  2. Watch for ice under your external unit. Some is normal. Too much is seen when the ice fills the space between the ground and the base of the unit. Hot water can help to reduce the mini glacier that can form under the compressor.
  3. Watch for ice ON your external unit. Thick ice climbing up the sides of the unit is not normal and suggests time to call a contractor.
  4. Increase the indoor fan speed for greater heat distribution. This often works much better than trying to nudge the temperature setting higher.
  5. Check and clean the air filter on the interior unit…now. 
  6. Watch your pipes and hydronic baseboards! Make sure you have a backup heating system ready to go or gently running as a heat supplement.
  7. Check your system balance and thermostat harmony.
  8. Check your thermostat setbacks. Very cold weather is not a good time to turn the heat down at night.

To read about each of these in more detail, check out our ‘Your Heat Pump and Winter’ page. 

Surge Protection 

It’s power surge season! Don’t let your heat pump compressor get taken out by winter weather. If you don’t yet have a whole home surge protector, we strongly suggest that you call an electrician and purchase one…yesterday! In Juneau, AELP will install these for free. If outside of Juneau, contact your local power utility for information. 

Cover Your Compressor!

One of the best defenses against rain, snow, and roof avalanches is building a small roof to shelter your unit. This can be as simple as a piece of plywood with metal roofing attached to the side of your home.

Without protection, snow and water can melt and freeze onto the compressor, blocking airflow and reducing efficiency. In addition your equipment will last longest when kept dry, preventing rust and water intrusion that can damage internal components. For more detailed information about covering compressors, you can read our previous blog post on this topic here

Maintenance

If your heat pump is not functioning properly in the winter (or during other times of the year), it may be time for a professional to service the unit. You can visit our ‘Maintenance, Repair, and Warranties’ page to find more information on who to call when your unit needs to be serviced.

Cover Your Heat Pump Compressor: Protect Your Investment

How well you protect and maintain your heat pump’s outdoor unit (also known as the compressor) plays a big role in how long it will last and how efficiently it will heat (and cool) your home. Heat pumps are unique in that they are a space heating system partially located outside of your building. Keeping the effects of weather at bay will go a long way to providing you with inexpensive and clean heating and cooling year round.

Build a Roof!

One of the best defenses against rain, snow, and roof avalanches is building a small roof to shelter your unit. This can be as simple as a piece of plywood with metal roofing attached to the side of your home.

Without protection, snow and water can melt and freeze onto the compressor, blocking airflow and reducing efficiency. In addition your equipment will last longest when kept dry, preventing rust and water intrusion that can damage internal components.

Does Your Compressor Need a Cover?

Ask yourself these questions:

  • Is the furthest edge of your compressor well-covered by your building’s eaves?
  • Is the unit protected from wind that could blow rain and snow onto it?
  • Does your unit stay dry during rain or snow?

If you answered “No” to any of these questions, your compressor would likely benefit from a cover!

Best Practices for Your Compressor Cover

  1. Allow for airflow – Place the cover high enough above the unit to ensure good airflow around all sides of the outdoor unit
  2. Provide adequate overhang – If possible, extend the cover at least 1 foot past the front of the compressor and 1 foot beyond each side

Protecting your heat pump’s outdoor unit is a simple investment that pays off in longer equipment life, reduced maintenance, better heating performance, not to mention good old peace of mind. Call any of your local heat pump installers to inquire if they provide compressor coverings or search online for creative options to make this your ‘should’ve done it yesterday’ DIY project.

ACRF Success Story

A side view of a trailer home with an air source heat pump installed, surrounded by a grassy area and trees in the background.

Who doesn’t love a success story? Read on for the good news! In short, this new happy heat pump owner may hold the new record for heat pump energy cost savings, seeing her heating bills drop by 85% with the addition of a heat pump and weatherization improvements!

The Alaska Carbon Reduction Fund (ACRF) is a program that installs single head air source heat pumps in the homes of lower income family that rely on fossil fuels or wood for heat. ACRF aims to lower heating bills and increase the use of clean heating systems in Southeast Alaska. To date, the program has facilitated the installation of 63 heat pumps in low income homes in Juneau, Sitka, Ketchikan, and Angoon, eliminating nearly 28,800 annual gallons of oil and helping lower home heating costs for these families.

Alaska Heat Smart (AHS) manages ACRF and recently performed a follow-up survey with 2023 ACRF heat pump recipient Wanda Culp. Wanda’s trailer home had an oil furnace as its primary heating system when she moved in. With the opportunity to participate in ACRF, Wanda was excited to transition from an oil furnace to a heat pump. Before moving to Juneau, Wanda lived in Hoonah, where energy costs are quite high – wood was her primary heat source. Today, Wanda is very thankful to have the heat pump in her Juneau home. She no longer has to deal with the physical burdens of heating with wood and she happily shared that the heat pump has exceeded her expectations. 

“The heat pump is just a pleasure,” Wanda recently told AHS staff. 

In 2024, Wanda took further steps to increase her home’s energy efficiency and had her home winterized. Impactful changes included a new insulated roof and new exterior skirting and siding repair. The heat pump, coupled with weatherization efforts, work together to make dramatic cost savings possible.

Before the installation of the heat pump, Wanda was spending $2,600 on home heating each year and burning roughly 530 gallons of oil. She now heats solely with the heat pump and no longer uses the furnace, slashing her annual heating bills down to $386 — an 85% decrease in her heating costs! 

“Wanda’s home is a fantastic example of the difference that home energy efficiency efforts can make in a person’s life,” said Alaska Heat Smart’s Bob Deering.

As ACRF continues to install heat pumps in low income households, we hope to see many more positive stories like Wanda’s! 

Your Support Needed

With federal funding uncertainty still the ‘new norm’, privately-funded programs like ACRF are critical in serving families in need in Southeast Alaska. Support for ACRF is more important now than ever! Upfront costs for a homeowner to take advantage of locally-produced and often inexpensive hydropower can be prohibitive. Homeowner support from projects like ACRF is often the only way that families with the highest energy burdens can reduce their costs. ACRF needs your support and there are many ways to offer it! Subscribe and take responsibility for your carbon! Tell your neighbors so they can give or subscribe. Know a family struggling to pay their heating oil bills? Send them to our application page. Know a business owner who currently carbon offsets ‘outside’ and could be keeping their responsible dollars working in southeast Alaska? Point them to our supporting partners page! Below are the logos of our invaluable business partners!

Logos of various organizations supporting the Alaska Carbon Reduction Fund, promoting clean heating and energy efficiency in Southeast Alaska.

Alaska Heat Smart 1 of 9 National Grant Awardees!

Alaska Heat Smart and partners to lower energy costs for nonprofits across Alaska!

On October 25, Alaska Heat Smart was announced as a ‘Prime Selectee’ for the Renew America’s Nonprofits grant, a funding opportunity from the Office of State and Community Energy Programs (SCEP) at the U.S. Department of Energy (DOE). We and eight other Prime Selectees from across the country will share $45 million in awards to help other nonprofits implement high-impact energy improvements in their buildings, creating cleaner and healthier community spaces, and generating energy savings that can be redirected to mission-critical work.

This $3.9M grant will allow Alaska Heat Smart and partners from the National Renewable Energy Laboratory – Alaska Campus (NREL), and Information Insights (II), to develop a statewide program to improve energy efficiency and reduce annual operating costs of up to twenty-five nonprofit Alaska buildings that serve lower to middle income and disadvantaged populations in the health and housing sectors.

Read our press release about this exciting opportunity!