Efficiency 101

If you are looking to reduce your home or business's energy bills, localize your energy use, or reduce your environmental impact, upgrading to a heat pump system or improving your home's efficiency are some of the best investments you can make. Southeast Alaska communities are leaders in statewide heat pump adoption, and with AHS financial incentives, there really has been no better time to make the switch.

Highlights

  • Heats Pumps 101
  • Types of Heat Pumps
  • Water Heating
  • Electrical Considerations
  • Weatherization
Heat Pumps 101

Heat Pumps 101

Learn about what heat pumps are, how they work, how savings can be achieved, and why heating with heat pumps is better for you, your wallet, and your community.

Type of Heat Pumps

Types of Heat Pumps

Heat pumps come in many forms, but air-source heat pumps are by far the most common choice for homes and businesses in Southeast Alaska.

Air-Source Heat Pumps

Air-source heat pumps pull heat from the outside air (even in cold climates) and move it indoors to heat your space, then are able to reverse the process in summer to provide cooling. Because they simply move heat rather than generate it, they’re highly efficient, using far less energy than electric resistance or fossil fuel heating. There are three main types:

Other Types of Heat Pumps

While air-source is the right fit for most homes, a few other technologies exist:

  • Geothermal (ground-source) heat pumps draw heat from the stable temperature underground. They can be highly efficient but come with much higher installation costs due to the excavation involved.
  • Tidal/water-source heat pumps draw heat from seawater — a technology of particular interest in coastal Alaska communities, though not yet widely deployed.

For most homeowners, a ductless mini-split system offers the best balance of cost, performance, and ease of installation.

Space Heating

Water Heating

Water heating is one of the biggest energy uses in an Alaska home, often ranking second only to space heating, and typically accounts for 15 to 20% or more of a home’s total energy use. Because we use hot water every day for showers, laundry, and dishes, and because it runs year-round rather than seasonally, even small efficiency gains add up to real savings. Upgrading to a more efficient water heater is a great way to lower energy costs, reduce strain on your electrical or fuel system, and cut carbon emissions.

Common Types of Water Heaters

  • Indirect Tanks (Oil or Propane Boiler-Fed) – Common in many Alaska homes, these storage tanks use the home’s oil or propane space heating boiler as the heat source for hot water rather than a standalone burner. Efficiency depends on the boiler’s condition and how well the system is set up.
  • Tankless (On-Demand) – Heats water only as it’s used, avoiding standby losses from a storage tank. Can be electric, oil, or propane-fired.
  • Electric Tank – Heats and stores water in a tank using electric resistance elements. Simple and reliable, but less efficient than a HPWH as it uses one unit of electricity for each unit of heat produced.
  • Heat Pump Water Heaters (HPWHs) – Instead of generating heat directly, HPWHs move heat from the surrounding air into the water. This makes them far more efficient than standard electric storage models. Learn more from Energy Star’s Heat Pump Water Heater page.

Why Electric and Heat Pump Water Heaters Make Sense

Standard electric water heaters are simple and low-maintenance, with no combustion, venting, or fuel deliveries to worry about. Heat pump water heaters take this a step further: they typically use 2-3 times less electricity than a standard electric tank to produce the same amount of hot water. Over time, that efficiency translates into significant savings on utility bills, even in Alaska’s climate. HPWHs perform best when installed in a semi-heated space like a basement or garage. HPWHs are not well suited for installation in small closets or other low volume rooms. Note that communities with low electric rates are best suited for electrifying water heating.

Decoupling Water Heating When Adding a Heat Pump

If you’re installing a heat pump for space heating but keeping your oil or propane boiler as a backup or supplemental heat source, it’s worth also switching your hot water from an indirect tank to a standalone water heater (such as an HPWH). Once the heat pump takes over most of the heating load, the boiler will run far less often. If it’s still tasked with heating water, it ends up firing on and off just to keep the tank hot, resulting in short, frequent cycles that are inefficient and put extra wear on the equipment. Decoupling water heating from the boiler lets the boiler sit idle when it isn’t needed and keeps hot water production efficient year-round.

Home Energy Assessment

Getting a Home Energy Assessment from Alaska Heat Smart is a great way to make a plan, compare operating costs for different water heating options, and decide what’s the best fit for your home and needs.

Your Heat Pump & Winter

Electrical Considerations

 Adding a heat pump, electric water heater, EV charger, or other new electric equipment often asks more of your home’s electrical system than it was originally designed for. Two factors determine whether your home is ready, or what upgrades may be needed first: your overall panel and service capacity, and whether your panel has room for new circuits.

1. Panel and Service Capacity

Your electrical panel distributes the power from the electric utility service to every circuit in your home, and it’s rated for a maximum load. Older, smaller homes often have panels rated around 100 amps, sized for the appliances of their time, while 200 amps is the modern standard for home electric capacity. Adding new electric loads, especially several large ones at once (like a heat pump, HPWH, and EV charger), may require upgrading to a higher amperage. Since this involves both your panel and the utility’s line into your home, this kind of upgrade is typically coordinated with your utility.

2. Breaker Space

Even with sufficient amperage, your panel needs open slots for new circuits. A full panel may need a subpanel, a reconfiguration of existing breakers, or space-saving “tandem” breakers where allowed. Panel age and brand matter too: some older models are harder to find parts for or are no longer considered safe to expand.

Planning Ahead

Heat pumps, electric water heaters, and other electric equipment add new demand to your electrical system. Understanding your panel and service capacity and available breaker space up front helps avoid surprises during installation, keeps your system operating safely, and helps you plan for future upgrades as you electrify more of your home.

Example Panels:

Water Heating & Other Appliances

Water Heating & Other Appliances

Heat pump water heaters (HPWH) and heat pump clothes dryers are two examples of how the energy efficiency of heat pumps can make electricity-hungry home appliances efficient and easy on your wallet.

Heat Pump Water Heaters

Energy Star estimates that a family of 4 could save $3,750 with a heat pump water heater over the lifetime of the unit. HPWH’s efficiencies and cost savings depend greatly on where the unit is placed. Alaska Heat Smart continues to study these systems and their utilization. Please check back regularly for updated guidance. HPWHs will cool down their surrounding space, so careful consideration must be given to the potential for freezing pipes in some circumstances.

Learn more from Energy Star’s Heat Pump Water Heater page.

Heat Pump Clothes Dryers

Clothes dryer can use heat pumps to reduce energy by at least 30% compared to standard dryers, according to Energy Star. In addition, these dryers do not require ventilation, are easy to install, and are generally easier on clothes.

Learn more from Energy Star’s Heat Pump Clothes Dryer page.