Estimated Savings for a Typical Alaska Home
2,000 sq ft home switching from electric-resistance heating
Installed Cost
$19,000
State Rebate
-$500
Net Cost
$18,500
Current Heating Cost/yr
$7,876
Heat Pump Cost/yr
$3,580
Annual Savings
$4,296
Payback Period
4.3 yrs
15-Year Savings
$63,787
CO₂ Avoided/yr
16,301 lbs
Alaska Heat Pump Rebates
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Federal 25C Tax Credit (Expired Dec 31, 2025)
The federal Energy Efficient Home Improvement Credit (up to $2,000 for heat pumps) ended December 31, 2025. Heat pumps installed in 2026 do not qualify for it.
Up to $500
Alaska State/Utility Rebate
Alaska offers limited utility heat-pump rebates; cold-climate (ductless) units are essential here.
Up to $8,000
HEEHRA Federal Rebate (Income-Qualified)
Households at or below 150% of area median income can receive up to $8,000 toward a heat pump through the federal HEEHRA program, administered by Alaska. View full rebate detail →
Heat Pump Costs by City in Alaska
| City | Annual Savings | Payback (yrs) | Population ↓ | Utility |
|---|---|---|---|---|
| Anchorage | $6,094 | 3 | 291,247 | Chugach Electric |
| Juneau | $4,490 | 4.1 | 31,974 | Alaska Electric Light |
| Fairbanks | $4,836 | 3.8 | 31,516 | Golden Valley Electric |
| Wasilla | $5,291 | 3.5 | 10,256 | Matanuska Electric |
| Sitka | $5,679 | 3.3 | 8,493 | Alaska Power & Telephone |
| Ketchikan | $4,645 | 4 | 8,201 | Alaska Power & Telephone |
| Kenai | $5,892 | 3.1 | 7,413 | Homer Electric |
| Palmer | $5,126 | 3.6 | 7,090 | Matanuska Electric |
| Kodiak | $5,872 | 3.2 | 6,130 | Kodiak Electric |
| Homer | $5,372 | 3.4 | 5,566 | Homer Electric |
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Quick Facts: Alaska
- 🌡️ Climate: Very Cold (10,000 HDD)
- ⚡ Avg electricity: $0.224/kWh
- 🔥 Natural gas: $1.60/therm
- 🏭 Top utility: Chugach Electric