Southeast Conference and the Juneau-based nonprofit Alaska Heat Smart have received a $38.6 million federal grant to help homeowners in Southeast and Southcentral coastal Alaska buy electric heat pumps to replace traditional fossil-fuel based heating systems.
AK Heat Smart has already helped to get heat pumps in 1,000 households across the region. This new infusion of money, which came in an announcement from the Environmental Protection Agency last week, will “supercharge” those efforts.
“It was, you know, definitely a feeling of shock,” said Andy Romanoff, Alaska Heat Smart’s executive director. “Then a little little bit of terror at the same time, which soon translated into excitement.”
Romanoff says the region is poised for more heat pump installations.
“We like to say coastal Alaska, from Ketchikan to Kodiak, is sort of the Goldilocks zone for heat pumps,” he said.
On Alaska’s southern coast, winters are not too cold and summers aren’t too hot, so heat pumps can easily maintain comfortable temperatures. And communities like Juneau, Sitka and Ketchikan have clean, renewable electricity in the form of hydropower, while Kodiak combines hydropower with wind energy. When heat pumps tap into those grids, they’re essentially emissions-free.
But even when they run on diesel-generated electricity, heat pumps can save homeowners up between 25% to 50% on heating bills when compared to traditional oil-based heating systems.
“That’s a really big lift, especially in our rural communities,” said Robert Venables, executive director of Southeast Conference. “And that is one of the primary focuses of this project, where over half the funds are really intended to those small rural villages that struggle with heating costs.”
The new funding will establish the Accelerating Clean Energy Savings in Alaska’s Coastal Communities Program, administered by Southeast Conference and AK Heat Smart, with help from Alaska Municipal League. The program will dole out financial incentives for heat pumps in communities from Ketchikan to Kodiak. Homeowners will be eligible for between $4,000 up to $8,500, depending on household income, to put towards a heat pump.
The program proposal was selected from more than 300 applicants nationwide who submitted bids under the EPA’s Climate Pollution Reduction Grant program, which ultimately divvied up $4.3 billion dollars total to states, local governments and a tribe for 25 projects that will cut down on the nation’s greenhouse gas emissions.
The biggest potential hurdle to this program’s success, Romanoff says, may be the workforce. There’s money for heat pumps, but there’s not really enough people to install them. He hopes more HVAC professionals, plumbers, electricians and even companies that have traditionally serviced oil boilers will go all-in on heat pumps, following this funding announcement.
“This is a chance to either grow a business, start a business, move into the space and recognize that this is where things are going, especially with this kind of infusion of money,” he said. “Now is a great time to get on the train and go for the ride with us, because we’re leaving the station.”
The program is expected to be officially up and running sometime next spring.
Correction: A previous version of this story characterized the new program as a rebate program, which would give refunds for heat pumps after purchase. Instead, homeowners will receive direct financial incentives ahead of purchase.
