Homer Electric Association (HEA) is proud to support energy efficiency by offering rebates to members who install qualified heat pumps in their homes or businesses. These systems offer a cleaner, more cost-effective alternative to fuel oil, propane, and traditional electric heating sources such as baseboards and space heaters.
Member Incentives
Members can access rebates of up to $1,000 for the purchase and installation of a qualified heat pump. Act now, as rebates for this program are limited. In addition to the rebates, members can use HEA’s low-interest line-of-credit as they’ve long been able to for any electrical appliances.
- $500 on-bill credit to the member/homeowner.
- $500 rebate check to a licensed contractor (plumbing, HCAC or general) installing a qualified unit.
- Financing available: Members may use HEA’s low-interest line of credit for eligible purchases.
ACT NOW – HEA rebates are limited.
Interested in learning about additional incentives that may be available to you? Explore the Alaska Heat Smart Accelerating Clean Energy Savings (ACES) Program linked below under additional opportunities. See the ACES Program FAQ here.
HEA Heat Pump Program FAQs
Heat pumps are most cost-effective for members who:
- Use heating oil or propane (especially in milder areas like Homer).
- Want air conditioning in summer (some heat pumps provide both heating and cooling).
- Have outdated or inefficient electric heating systems.
- Heat large buildings with high energy demands.
Note: Homes using natural gas for heat and hot water may not see significant cost savings.
Consult with general contractors or licensed HVAC and Plumbing professionals about the performance and cost savings you might realize from switching to a heat pump or specifying one in new construction. There are also online heat pump calculators, including one for Alaska at Heat Pump Calculator.
Mini-split systems: Designed to heat or cool individual rooms. These systems consist of indoor and outdoor units connected by refrigerant lines.
Packaged or sealed systems: Typically installed outdoors and connected to indoor plumbing or heating loops. These may be easier for homeowners with basic plumbing/electrical skills to install.
Common brands include Mitsubishi, Daikin, Mr. Cool, Lennox, Trane, and Honeywell. Some units are sold through contractors; others are available online.
Members in Kenai or Soldotna city limits may require building permits and inspections for electrical and plumbing work. Contact local building officials for guidance.
Installations must meet local codes and may be inspected by HEA staff. Installers in remote areas (e.g., south of Kachemak Bay) may be grouped for monthly inspections.
ENERGY STAR-certified heat pumps, including cold-climate models, may be eligible for a federal tax credit through 2032. Learn more at ENERGY STAR’s website.
You may be eligible for additional funding through Alaska Heat Smart’s ACES Program. The general timeline for application to the program and installation of your heat pump is outlined on the Alaska Heat Smart website.
Contact HEA at (907) 235-8551 in Homer or (907) 283-5831 in Kenai. You may also submit questions directly to HeatPumps@HomerElectric.com.