Heat pumps are becoming a viable option for heating homes on the Lower Kenai Peninsula, offering a cleaner, more efficient and sometimes cheaper alternative to traditional systems.
Homeowners on the Lower Kenai Peninsula have access to multiple programs to help offset the cost of installing heat pumps. These include federal tax credits and local rebates offered through the Homer Electric Association.
A heat pump is a system that moves heat rather than generating it, using electricity to transfer warmth from outside sources into a home.
Andy Romanoff is the executive director of Alaska Heat Smart, a nonprofit based in Juneau that helps residents transition to energy-efficient heating systems. He said Alaskans are adopting heat pumps more slowly than other parts of the country.
“They're all over the place, in the southeastern United States they're very common, mostly as air conditioning units. But the units can also produce heat. And so ‘heat pump’ is kind of a misnomer in that they also provide air conditioning,” Romanoff said.
Modern heat pumps are designed to handle colder temperatures. Andrew Lorentz, who operates Remote Energy Alternatives in Seldovia, specializes in installing air source heat pumps and said they are gaining traction in the area.
"Nowadays, especially in coastal Alaska, you’re starting to hear more about mini-splits being a viable option. Most cold-weather heat pumps can operate efficiently down to negative 5 or lower,” Lorentz said.
The cost of installing a heat pump can be offset by programs like Homer Electric Association’s rebate offerings.
The rebate includes $500 for homes or businesses that install a heat pump and another $500 for contractors who complete the installation. Erin McKittrick, a member of the HEA board, said the program helps encourage installations, but savings depend on a home’s existing heating system.
Some people can save money by switching to a heat pump, but definitely not everybody. So most people that have natural gas heat won’t save money switching to a heat pump,” McKittrick said.
McKittrick has firsthand experience with the systems. For the past two years, her home, a yurt in Seldovia, uses a minisplit as the sole heat source. She said for communities that have high heating fuel costs, like Seldovia, heat pumps are actually a cheaper alternative.
Heat pumps can still provide a more efficient method of heating than many propane, electric, or oil-based systems in Alaska’s milder climates, like Homer.
In 2025, coastal Alaskan communities, including Homer, will gain access to a program, funded by the Environmental Protection Agency, that offers additional financial incentives for installing heat pumps. Romanoff said unlike a rebate, the incentives offset the initial cost of the install, and are income based.
“Up to $8,500 if you're lower income, you essentially contract the work, make a down payment, get the work done, get the unit up and running, and then receive the $4,000 or $6,000 check or more from Alaska Heat Smart to then pay off the remaining balance of the project,” Romanoff said.
Other options, like tax credits from the Inflation Reduction Act, and additional federal rebates, are also available to help homeowners pay for heat pumps.
On Nov. 19th, Homer Drawdown held a presentation on heat pumps as part of it’s “Climate Smart Homes” project. You can find a recording of the event here.
A heat pump calculator is available on the HEA website to help determine possible energy and cost savings from the use of a mini-split.
