a box-like machine unit with a covered fan hooked up to the side of a house
A Daikin R32 heat pump unit is seen outside a home on Gastineau Avenue in Juneau. (Alaska Heat Smart)

Andy Romanoff directs Alaska Heat Smart, a Juneau-based nonprofit that helps Alaskans reduce their heating costs, often through the conversion to heat pumps.

“Most people come to us and they don’t really care to know how a heat pump works,” Romanoff explained. “But they have heard about them, and they ask, ‘What’s it going to cost me? What’s it going to save me?’”

For the many homeowners in Southeast Alaska who use entirely oil-based heat, Romanoff said switching to heat pumps could shave 50-75% off their bill. Part of the reason the savings are so dramatic is that many Southeast communities use hydropower for electricity, which is much more affordable than other sources.

The catch is that heat pumps can be expensive, costing several thousand dollars or more to install. But thanks to a $38 million federal grant that came out of the Inflation Reduction Act, that installation cost could be mostly or entirely covered for local residents.

To help facilitate the process, the Ketchikan Borough Assembly on Monday approved an agreement with the city to support a part-time Heat Smart home energy advisor in Ketchikan. That funding, roughly $150,000, comes from federal grants both the city and borough had previously received from the U.S. Department of Energy.

Romanoff said the new advisor’s job will be to conduct assessments and provide information to homeowners to help them make decisions. He said every home is a little different.

“How much heat does your home actually need on the coldest day of the year to stay warm?” Romanoff said. “What potential issues exist in your home regarding heat, regarding power, and what are your options as a homeowner to provide that heat in a clean, efficient and money saving way?”

Residents in Ketchikan and throughout coastal Alaska who switch to heat pumps could receive a direct, up front financial incentive up to $8,500, potentially covering the full cost of the install. The amount of the incentive varies by income level, but even higher income residents can get about half that amount. And Romanoff said there are other local and national incentives to bring down the cost.

Whatever you might have to pay up front, Romanoff said the savings happen quickly.

“The average home that installs a single-head, one-head air source heat pump saves about $1,500 a year,” Romanoff said. “We have some homes saving up to $3,000 a year, with maybe a two-head heat pump system.”

For Southeast towns that run on hydropower, that also means that the heating system becomes fully renewable, slashing the emissions of burning oil, one of the primary contributors of human-caused climate change. 

Getting rid of oil heaters also improves the air quality of your home. Romanoff said after putting in his heat pump, house guests started noticing that it no longer smelled like diesel.

“And I never even knew it did, because I was just used to it,” Romanoff said. “So you’ve got all that backdrafting of monitor stoves and Toyostoves into the homes, adding that to our health issues.”

Romanoff said they hope to have the home energy assessor on the ground within the next month or two, and to begin funding installations by spring 2025. Potential applicants interested in the assessor job can call 907-500-5050 for more detailed information.

Heat Smart has already started doing some simpler virtual assessments in Ketchikan. You can apply for your own home assessment online at akheatsmart.org.