Alaska Heat Pump Rebates
Among the open Alaska heat pump rebates, the largest one comes from the Accelerating Clean Energy Savings program and pays $8,500. Between $500 and $8,500 is available toward a new system for homeowners in coastal towns and in two utility co-op areas.
Find the Alaska rebates for your ZIP code
If JavaScript is not running, the program table lets you find your state.
Who sends your electric bill?
What are you putting in?
- Largest standard rebate available
- $4,000 Heat pump rebates under Accelerating Clean Energy Savings (ACES)
- If your household income qualifies
- $8,500 Accelerating Clean Energy Savings (ACES) heat pump rebates
- HEAR appliance rebates
- Not open yet, though approved Run by AHFC. Official page
- HOMES whole-home rebates
- Approved, not open yet Paid on the energy saved by a whole-home upgrade. Official page
- The federal tax credit under 25C
- Ended No credit for heat pumps installed after 31 December 2025
Alaska heat pump rebates
To see which rebates your home can get, match each row to your coastal town or electric utility.
| Program | Who can get it | Central heat pump | Ductless mini-split | Heat pump water heater | Status | Apply |
|---|---|---|---|---|---|---|
| Accelerating Clean Energy Savings (ACES) heat pump rebates | Everyone in the state | None | $4,000 | None | Open | Official page |
| GVEA REDUCE on-bill financing pilot | Served by Golden Valley Elec Assn Inc | None | None | None | Paused | Official page |
| Matanuska Electric Association Heat Pump Program (in development) | Served by Matanuska Electric Assn Inc | None | None | None | Closed | Official page |
| Heat pump and heat pump water heater rebate from Petersburg Municipal Power & Light | Petersburg Municipal Power & Light customers | None | None | None | Ended | Official page |
How to Claim Coastal and Utility Rebates, Step by Step
The Accelerating Clean Energy Savings program takes applications from residents in over 43 coastal communities. These run from Metlakatla to Kodiak. Hold off on buying equipment, since the program does not pay retroactive rebates. Use these steps so that you avoid losing your funding:
- File the online application along with your state identification and latest tax return.
- With Alaska Heat Smart, complete a free home energy assessment, then wait for final written approval.
- Within one year of approval, have a professional installer finish the work, then send in your reimbursement packet.
Once the work is done, electric co-op members apply. Chugach Electric pays up to $900 to customers whose unit was installed by a manufacturer-approved contractor and who submit 12 months of fuel records. For Homer Electric Association, a licensed contractor is required, and the $1,000 reward is split between a $500 bill credit and a $500 payment to the installer.
Can Lower-Income Households Get Larger Alaska Heat Pump Rebates?
The highest tiers from Alaska Heat Smart go to lower-income coastal households that replace systems heating with oil, propane, gas, or wood. Area Median Income, the midpoint household income in your local region, determines the tiers:
- At 80% of the local midpoint or below, families can receive $8,500, with Southeast Conference paying the contractor directly.
- $6,000 goes to households earning 80% to 150% of the local midpoint, and $4,000 goes to those earning more.
- A signed agreement from the property owner lets renters claim the same amounts.
The federal Home Energy Rebates remain closed statewide for now. A $74.6 million allocation went to the state, but no launch date has been set by Alaska Housing Finance Corporation. Upgrades bought now, they warn, will not get retroactive payouts later; the only one open is their $10,000 New Home Construction Rebate.
The Alaska Weatherization Program and Local Heating Rules
Free weatherization services from Alaska Housing Finance Corporation are available to homeowners and to renters, as long as they meet the 2026 income limits. Regional weatherization service providers do the work, leaving your home better at holding heat before you size a new unit.
The Energy Information Administration says that fuel oil, kerosene, or propane heats three in ten Alaska households. Alaskans also burn over 100,000 cords of wood each year, while electricity is the main heat source in only one home out of seven.
Start by looking up the status of your local co-op: Golden Valley Electric Association put its loan pilot on hold after applications filled the budget. Because Internal Revenue Service rules ended the federal 25C tax credit for installs after 31 December 2025, you also cannot claim it.
Common Questions About Alaska Heat Pump Rebates
Will heat pumps come with tax credits in 2026?
For heat pumps installed in 2026, no federal residential tax credits are left. The One, Big, Beautiful Bill, passed by Congress on July 4, 2025, ended the credit ahead of schedule. Equipment that goes into service during 2026 will not qualify, the Internal Revenue Service has confirmed. Chugach Electric also uses a 1099-MISC tax form to report its local utility rebate.
What is the price of a heat pump installation in Alaska?
Installation costs in Juneau run from about $5,000 up to $50,000, based on the type of heat pump you choose. The Accelerating Clean Energy Savings program covers trailer homes, multifamily buildings, apartments, single-family houses, duplexes, and condominiums in coastal towns. Homer Electric Association gives members a low-interest line of credit to help cover upfront costs.
Will heat pumps work in Alaska?
Heat pumps perform well along coastal Alaska, where installations in Sitka, Ketchikan, Wrangell, and Kodiak are funded by a five-year, $39 million grant. Chugach Electric recommends air-source units that are ENERGY STAR certified for cold climates when seeking utility rebates. Case by case, Chugach Electric also evaluates hybrid systems that pair with a gas furnace, along with ground-source heat pumps.
Are heat pump rebates in Alaska ending?
Regional programs are replacing some local utility rebates as those rebates end. On October 30, 2026, the local rebate from Petersburg Municipal Power & Light ends, because the coastal grant now serves residents. Claims through January 31, 2027 are limited to Petersburg customers that applied for their electrical supplemental permit no later than October 30, 2026.
Get Alaska installer quotes with the rebates taken off
Most rebates on this page are paid through the installer or need the installer's paperwork, so the quote is where the money is settled. Tell us the ZIP code and what you want installed, and installers who work with these programs send a written price with the rebates taken off.