Heat Pump Loan Program
In a nutshell, the interest paid on this loan will be far less than the heating bill savings realized by utilizing the loan for the purchase and installation of an air source heat pump. For example, a $5,000, five-year loan, at 4% interest, would result in an approximate monthly payment of $100 and total interest paid over the lifetime of the loan of approximately $500. That interest total equates to only about $8 each month! A $500 to $1000 annual heating bill savings from a heat pump addition is not uncommon, suggesting that this loan will not only ease the up-front burden of heat pump purchase and installation, but provide a range of $400 – $900 savings annually over the life of the loan. Once paid in full, the savings only go up.
- Loan Programs
- Homeowner Experiences
Loan Programs
You can learn more about the Tongass Federal Credit Union Heat Pump Loan Program for Sitka residents here or on our TFCU Loan instructions page.
You can learn more here about the True North Federal Credit Union Heat Pump Loan Program for coastal Alaska residents within the ACES program region or on our TNFCU Loan instructions page.
Homeowner Experiences
Qualifying for a heat pump incentive from Alaska Heat Smart was fantastic news! What really made my heat pump project work was adding a low interest True North FCU loan to help cover the cost. I qualified at 4% interest, meaning that my $6,000 loan would only run me about $12/month in interest! The loan allowed me to move ahead with pretty much no money out of my wallet!
Dan R., Douglas, AK
Without the loan, I wouldn’t have been able to buy my heat pump and start saving heating bill money. This is the thing with heat pumps…you have to buy it to start saving! I only had half the cost and a TNFCU short term, low interest loan made it happen. This winter’s fuel savings were easily over $100 a month from last winter!
Ernastine J., Juneau, AK
Eligible Equipment Requirements
To be eligible for a rebate through the ACES program, heat pumps must meet the following specifications. The cold climate specifications are aligned with the ENERGY STAR cold climate heat pump requirements found here. The specifications below are minimum requirements. We strongly recommend installing a heat pump with higher performance standards that maintains 100% heating capacity at 5°F. If you have questions about heat pump performance or specifications, please reach out to aces@akheatsmart.org or talk with your contractor.
Minimum Cold Climate Requirements
| Product | Specifications |
|---|---|
| Heat Pump Split Systems (ductless) | – HSPF2 ≥ 8.5 |
| Heat Pump Split Systems (ducted) | – HSPF2 ≥ 8.1 |
Other Program Requirements
- A whole house surge protector or a heat pump surge protector must be installed by either a heat pump installer, an electrician, or your local electric utility.
- A drain pan heater is required in all heat pump installations.
- Heat pumps must be protected and registered under the manufacturer’s parts warranty.
If you would like to install an air to water or ground source system, please email the specifications to aces@akheatsmart.org for review.
Download a PDF of the Eligible Equipment Requirements here.
Rebate Levels
To be eligible for a rebate through the ACES program, heat pumps must meet the following specifications. The cold climate specifications are aligned with the ENERGY STAR cold climate heat pump requirements found here. The specifications below are minimum requirements. We strongly recommend installing a heat pump with higher performance standards that maintains 100% heating capacity at 5°F. If you have questions about heat pump performance or specifications, please reach out to aces@akheatsmart.org or talk with your contractor.
Heat Pump Rebate Levels
Learn more about rebate levels and community eligibility here!
| ≤ 80% of Area Median Income | 80% - 150% of Area Median Income | No Income Cap! |
|---|---|---|
| $8,500 | $6,000 | $4,000 |
Other Program Requirements
- A whole house surge protector or a heat pump surge protector must be installed by either a heat pump installer, an electrician, or your local electric utility.
- A drain pan heater is required in all heat pump installations.
- Heat pumps must be protected and registered under the manufacturer’s parts warranty.
If you would like to install an air to water or ground source system, please email the specifications to aces@akheatsmart.org for review.
Download a PDF of the Eligible Equipment Requirements here.
Communities Income Brackets & Rebate Levels
The table below will help you to determine your ACES rebate amount based on your household income relative to your community’s Area Median Income (AMI). If you do not see your community listed, please reach out to aces@akheatsmart.org. Please note that there is no upper income limit on the $4,000 rebate level.
Reimbursement Requirements
The ACES program has specific reporting requirements to ensure heat pump installations meet all of the program requirements. ACES rebate recipients will be required to turn in a ‘reimbursement packet’ to confirm the heat pump installation and receive their rebate. Please note that DIY heat pump installation and electrical work is not permitted. Contractors and residents will work together to compile the reimbursement packet. The packet will include the following:
- Signed installation checklist – the heat pump installer will complete this form during or after each installation.
- Required Photos
- Outdoor Unit
- Indoor Unit
- Name plate (this can usually be found on the back side of the outdoor unit)
- Picture of the home, including the house number
- Final invoices for both the heat pump installation and electrical work, marked ‘paid’, that includes the following information:
- Name of the company who installed/wired the heat pump
- Address of the home
- Name of the customer
- Date of the project
- Description of work completed
- Total price
- Completed W9 Form (include ACES recipient’s mailing address)
- This is the responsibility of the ACES rebate recipient
A Reimbursement Packet Checklist can be downloaded here. Please send reimbursement packet documents to aces@akheatsmart.org.
Invoice Example
All of the information in red is required to be on both heat pump installation and electrical invoices (heat pump model number does not need to be included on an electrical invoice). Right click to enlarge the image.
This project has been funded wholly or in part by the United States Environmental Protection Agency under assistance agreement #84101201 to Southeast Conference (SEC). The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does the EPA endorse trade names or recommend the use of commercial products mentioned in this document.
If you have questions about any documents or would like a form mailed to you, please reach out to aces@akheatsmart.org. Click on the links below to download forms.
Applicant Forms
Contractor Forms
Informational Documents
This project has been funded wholly or in part by the United States Environmental Protection Agency under assistance agreement #84101201 to Southeast Conference (SEC). The contents of this document do not necessarily reflect the views and policies of the Environmental Protection Agency, nor does the EPA endorse trade names or recommend the use of commercial products mentioned in this document.