As the sunsets creep earlier and earlier, hinting at shorter days to come, it’s only a matter of time until winter cold sets in. Alaskans know well that you don’t wait for the cold to arrive to figure out how you’re heating your home, and with rising fuel oil prices it may be time to consider a more cost-effective and environmentally friendly option.

A pair of nonprofits, the Southeast Conference and Alaska Heat Smart, are encouraging Alaskans warming their homes with oil, propane or wood to take advantage of their heat-pump rebate program to convert the heating system in their homes. 

“There’s still plenty of time for folks that have either woodstoves or oil furnaces to reach out and get their assessment and paperwork in order to qualify for the incentive program for a heat pump,” said Robert Venables, executive director of the Southeast Conference, a 78-year-old community and economic development organization.

The program, which is only for residential properties, is funded by a $39 million Climate Pollution Reduction Grant awarded to the Southeast Conference in 2024 by the Environmental Protection Agency.

The money is intended to support the transition of up to 6,000 homes to more energy-efficient heat sources across more than 43 coastal communities, along with the operational costs for the program.

To date, 185 heat pumps have been installed across all eligible communities, with just over 300 more households approved for funding. Of those completed projects, there are only three in Wrangell, with 14 more fully approved. This means that there is still ample funding for new applicants.

The amount granted is dependent on income, but there is no income cap to qualify for a rebate.

Those making more than 150% of the median income for their area can still receive a $4,000 rebate for installation of a heat pump in their home. Those making between 81% and 150% of the median household income are eligible for a $6,000 rebate, while those making 80% or under are eligible for the maximum grant of $8,500, with some variation for household size.

The U.S. Census Bureau reported the median household income in Wrangell was $63,750 in 2024.

Homeowners who are not approved for a grant that covers the entire installation cost are responsible for costs in excess of the rebate.

The maximum rebate amount was initially set to fully cover the installation of a simple single-head heat pump when the program was first designed, but recent changes to the economy mean that may not be true for all communities.

“With inflation, that’s definitely changed and gone up since the grant was written and conceived of a few years ago,” said Hannah Wilson, Alaska program manager for Alaska Heat Smart, the clean energy nonprofit responsible for program implementation.

To help bridge the funding gap for anyone using their rebates to install a heat pump, the nonprofits have teamed up with True North Federal Credit Union to offer low-interest loans to cover any amount in excess of the rebate or help cover the upfront cost of installation before a homeowner receives the rebate.

Those receiving the full $8,500 rebate for low-income households also have the option to use an Alaska Heat Smart-approved contractor. If so, Heat Smart will pay the contractor directly, so that the homeowner does not have to spend any money up front. The caveat is that not all communities have approved contractors in their area. 

Previously, the Sentinel reported that low-income homeowners in areas without approved contractors would not be able to find their own and would instead have to wait for a contractor to be identified for them. However, Wilson clarified that is not the case.

All participants approved for a rebate have the ability to select their own contractor, it just means that they are responsible for the upfront payment and will have to wait to be reimbursed by the rebate like everyone else. Wilson said that this is where the loan program could come in handy.

She also said residents are not required to remove their old heating system to participate in the program. She said they support homes having redundancy to their heating systems to get them through the winter.

“We’ve got lots of money, so it’s just a matter of folks following through once they get their green light on the assessment,” said Venables from Southeast Conference, “and then you choose a contractor and off to the races.”

To learn more and apply visit www.akheatsmart.com/aces.