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.

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.

‘1% for the Planet’ Partnership

Yard with green grass and a sign that says 'I ❤️ my heat pump' promoting Alaska Heat Smart.

Alaska Heat Smart (AHS) is excited to announce that we have joined 1% for the Planet as an ‘environmental partner’! This new partnership, initiated by Peter Nave, owner of Wild Coast Excursions, an AK Carbon Reduction Fund supporting business, is intended to advance AHS program impacts while providing additional businesses the opportunity to not only support the good work at AHS, but to further individual business sustainability goals.

The 1% website tells us that, “1% for the Planet is an accountability partner for businesses that are ready to reject business as usual and give back to environmental partners making a difference around the globe. Started in 2002 by Yvon Chouinard, founder of Patagonia, and Craig Mathews, founder of Blue Ribbon Flies, 1% members have given hundreds of millions of dollars to environmental partners to date.” 

Additionally, “The intent of 1% for the Planet is to help fund these diverse environmental organizations so that collectively they can be a more powerful source in solving the world’s problems,” writes co-founder Yvon Chouinard.

In these times of federal funding uncertainty, it is more critical than ever that AHS seeks to diversify funding. Joining 1% for the Planet and choosing AHS as your environmental partner will help us continue to carry out our mission to reduce Alaskans’ cost of living and increase the use of clean energy in Alaska households. We’d like to give a shout out to two ACRF supporting partners, Wild Coast Excursions and Hansen Gress! Both are ‘1% Business Members’ and will be supporting ACRF via this route!

Learn more by viewing the AHS 1% profile here. If you would like to get involved and support AHS through the 1% program, explore their FAQ here!

Heat Pump Water Heaters: Are They Worth It?

A gray water heater installed against a wooden wall, with colored pipes connected, and a bicycle hanging on the wall beside it.

With all the excitement of switching to heat pumps for space heating, many people are wondering if they should make the switch to heat pumps for domestic water heating as well. This post dives into the pros and cons of heat pump water heaters (HPWHs) so you can determine if a HPWH is the right choice for your home.

What is a Heat Pump Water Heater? 

Water heating accounts for about 18% of your home’s energy use and is typically the second largest energy expense in any home. In southeast Alaska, domestic hot water is most often heated by an electric resistance tank or directly from a connection to an oil-fired boiler, with on-demand electric or propane systems common as well. A HPWH uses a heat pump to move heat from the surrounding air into the water tank, rather than using an electric coil or burning of fuel to create heat. Since HPWHs simply move heat from one location to another, they can be 3-4 times more efficient than other water heating systems.

You might hear HPWHs referred to as ‘hybrids.’ HPWHs also contain electric resistance heating elements that can be used when the hot water demand exceeds what the heat pump itself is able to supply.

Considerations

Before choosing to switch to a HPWH, there are several things that should be considered: 

  1. Units should be installed in 10’ x 10’ or larger rooms that are warmer than 35°F.
    • Basements or other non-living areas are ideal because the HPWHs make some noise and have a cooling effect due to using surrounding air to heat the water.
    • HPWHs will grab heat energy from their surroundings. If your present water heater is in your home, vs your garage or basement, this may not be the ideal switch for you to make.
    • If you still heat your home with an oil boiler, waste heat from that system can be an ideal energy source for your HPWH.
  2. The units produce condensate that will need to be drained into a drain, sink, sump pump pit, or something similar. 
  3. Adequate air circulation is needed for maximum efficiency, so units should not be installed too close to walls or ceilings. 
  4. The unit’s air filter will need to be rinsed on a regular basis. 
  5. In order to minimize heat loss, insulating the first few feet of incoming and outgoing pipe is recommended. 
  6. There are 120V and 240V HPWHs. Factors such as ease of installation, cost, household size, electrical panel and service realities, and household hot water demand play into which unit would work best. More information on these can be found at the end of this post. 

HPWH Pros: 

  • Up to 3-4 times more efficient than other types of water heaters
  • Can save households $80-$230 annually on water heating bills (according to a study by Rewiring America)
    • This can vary based on climate, water usage, household size, etc. 
    • Savings may not be as significant in communities with lower electrical rates if switching from a traditional electric water heater to a HPWH
  • Reduces carbon footprint (if switching from a fossil fuel system) 
  • Help dehumidify the space they are in  
  • Wifi controls so you can manage heating schedules and track energy usage from your phone 

HPWH Cons: 

  • Require a large space such as a basement or garage / should not be placed in an internal closet
  • Only heat water at a rate of 7 gallons/hour (GPH) in heat pump-only mode
    • If in hybrid mode (heat pump and electric resistance at the same time), can heat about 27 GPH
  • Cools the surrounding space by about 3-5°F 
  • Upfront costs
    • HPWHs cost between $1,200 and $2,500, plus labor for installation, and any electrical set up that is needed 
  • Contractors to install and service HPWHs are limited. Alaska Heat Smart will post contractor information as it becomes available.

The Bottom Line

HPWHs can provide an energy efficient and cost-saving option for water heating, but as with most things there are some downsides. Before investing in a HPWH, be sure to research unit types, installation requirements, warranties, your home’s electrical infrastructure, and contractors who can install and provide repair services. If you have already performed simple energy efficiency upgrades in your home and have the ideal space to install a HPWH, this can be a great option to take your home’s energy efficiency to the next level. 

If you want to have HPWHs stuck in your head, check out this fun HPWH music video!

Alaska Heat Smart would love to hear about your experience with HPWHs! Contact ria@akheatsmart.org to share your experience or ask any questions. 

Helpful Resources: 

Efficiency Maine HPWH Information

HPWH User Tips

HPWH FAQs

Cost Analysis by Rewiring America

120V HPWH Advantages and Drawbacks

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!