Heat Pump Loan Program

Alaska Heat Smart has partnered with the True North Federal Credit Union throughout the ACES program region and Tongass Federal Credit Union in Sitka to provide low-interest loans for heat pump installations. This unique program offers a way for homeowners to manage the upfront costs of heat pump installation so that they can begin saving right away!

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 Program

Loan Programs

 
Loan amounts for qualified borrowers are up to $20,000 for up to 60 months with rates starting at 4.1%.* The following instructions will help you navigate the application process for a heat pump loan from True North Federal Credit Union.
  1. Receive a Home Energy Assessment report. This is an important first step and the report is required by TNFCU.
    • For homes heated by oil, wood, propane, or natural gas:
      • Apply to the ACES Heat Pump Rebate program to get a no-cost Home Energy Assessment. 
    • For homes with electric primary heating systems: 
      • Apply for a no-cost Home Energy Assessment. 
  1. Go to the TNFCU heat pump loan page here and click “Apply Now”.
  2. Under “Loan Type”, choose “Personal Loan.”
  3. Under “Loan Amount,” choose an amount of up to $20,000.
  4. Under “Loan Term,” choose an amount of up to 60 months.
  5. Under “Loan Purpose,” choose “Heat Smart Referral.”
  6. Once in contact with a loan officer, provide them with your Heat Pump assessment report to confirm your eligibility.

*Rate and terms on approved credit, conditions apply and are subject to change without notice.

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

Loan amounts for qualified borrowers are up to $15,000 for up to 60 months with rates starting at 5.5%.*

To apply for the Heat Pump Loan, applicants will need to:

  1. Receive a Home Energy Assessment report. This is an important first step and the report is required by TFCU.
    • For homes heated by oil, wood, propane, or natural gas:
      • Apply to the ACES Heat Pump Rebate program to get a no-cost Home Energy Assessment. 
    • For homes with electric primary heating systems: 
      • Apply for a no-cost Home Energy Assessment. 
  2. Go to the TFCU heat pump loan page here and click “Apply Now”.
  3. Follow the application instructions
  4. Once in contact with a loan officer, provide them with your Heat Pump assessment report to confirm your eligibility.

*Rate and terms on approved credit, conditions apply and are subject to change without notice.

You can learn more about the Tongass Federal Credit Union Heat Pump Loan Program for Sitka residents here.

Homeowner Experiences

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