A federally funded program meant to help Alaskans lower both their energy bills and planet-warming emissions is set to roll-out this summer after months of uncertainty.
Its ultimate aim is to defray the cost of installing electric heat pumps, which can heat and cool homes in place of fossil-fuel based systems – sometimes at a lower cost.
Under the program, lower-income households will get $8,500 to put toward a heat pump. Higher-income households will get either $6,000 or $4,000.
“We do think that for households that have lower income, below 80% area median income, that the incentive should cover the full cost of the installation,” said Cady Lister, a senior energy advisor at Southeast Conference, which is helping manage the grant.
The grant was awarded to Southeast Conference and Alaska Heat Smart, a Juneau-based nonprofit. The two groups say the money could help install more than 6,000 air source heat pumps in households that primarily use fossil fuels or wood for home heating.
Lister said households will be responsible for paying for the installation up front and will be reimbursed afterward. She also emphasized that a newly installed heat pump does not mean households should remove their existing heating systems – especially in Alaska.
“On very, very cold days, it could be that you need to, or want to, turn your Toyo stove or your boiler back on,” she said. “But most if not all of your heating needs could be met with the heat pump.”
Months of uncertainty
The U.S. Environmental Protection Agency first awarded the money to the two Alaska nonprofits last year, aiming to help thousands of coastal and Southeast Alaska households install heat pumps. The target area includes dozens of communities across the region, including Haines and Skagway.
But then President Donald Trump took office in January and halted funding for federal contracts, loans and grants. That included a $38.6 million grant for the heat pump program.
“Our funding was frozen twice,” said Lister. She added that the funding has been available again for the last month and a half.
Organizations across the country experienced a similar chain of events after a federal judge blocked the funding freeze and the Trump administration rescinded the original memo that ordered it.
Lister said the freeze resulted in a lot of uncertainty around the program – and a slight delay. But now that the money is available, the group is racing to finalize program requirements and other details.
Within the next month, they plan to release more information about how households can apply and which contractors they can use.
“We’re working hard to catch up now so that we can get this program out on the street,” Lister said.
