Parts of Alaska · Free service
Alaska Carbon Reduction Fund Heat Pump Program
Run by Alaska Heat Smart (Alaska Carbon Reduction Fund)
No-cost heat pump installations for lower-income homeowners in coastal Alaska communities from Metlakatla to Kodiak whose homes are heated by oil, propane, natural gas or wood. Household income must be at or below 80% of the area median; first come, first served.
Amounts
How much you get
Covers the heat pump installation at no cost to eligible households, often combined with an $8,500 ACES rebate. Alaska Heat Smart reports stacked projects receive an average of $2,500 of ACRF help on top of ACES. Funding is limited and first come, first served.
Eligibility
Do I qualify?
You need to meet all 5 of these.
Your home is in Parts of Alaska.
Household income must not exceed 80% of the area median income (AMI) for your community, using the same AMI values as ACES. An income and asset check is done.
You must own the home you're applying for.
The home must be heated by oil, propane, natural gas or wood. Homes with a broken fuel system and no backup heat, or relying on plug-in space heaters, can qualify.
A home energy assessment must show your home qualifies and a heat pump is cost effective.
What to doApply and complete Alaska Heat Smart's home energy assessment.
Equipment
What equipment counts
Applying
How to apply
You apply online. First come, first served until available funding is used. Get approved before you buy anything.
- Submit an application.
- Submit documentation.
IDs, recent bank statements, a month of pay stubs, retirement account statements, benefit or pension letters, other income and assets, three years of fuel oil data and a rough floor plan.
- Income verification.
Alaska Heat Smart checks income and assets; if you're over the limit they look for another program for you, such as ACES.
- Home energy assessment.
- Installation.
Alaska Heat Smart coordinates the installer and electrician; you and AHS review and approve the quotes.
Driver's license or state ID for everyone 18 and over; birth certificate or ID for those 17 and under
Most recent checking and savings statements for each account
One month of recent pay stubs for all wage earners
Retirement account statements; Social Security, disability, pension or annuity letters (if any)
Fuel oil data for the past 3 years
A floor plan of your home (a rough sketch is fine)
Forms and instructionsUpdate: AK Carbon Reduction Fund (Alaska Heat Smart, October 13, 2026) · Alaska Heat Smart: Contact
Questions about applying(907) 209-5717 or help@akheatsmart.org
Stacking
Use it with
ACRF is paired with ACES when possible; households that qualify for ACRF will likely qualify for ACES too.
Parts of Alaska
ACES: Accelerating Clean Energy Savings
Up to $8,500 back
Heat pump rebates of $4,000 to $8,500, set by household income, for homeowners and renters in 43+ coastal Alaska communities from Metlakatla to Kodiak whose main heat is oil, propane, gas or wood. There's no income cap on the $4,000 level. You must be approved before buying anything.
Checked Oct 27, 2026
Your address
Next steps
Check that it covers your address. This program has to approve you before you buy anything, so start with the program, not a contractor quote.
Is it available at your address?
Before anything else
Apply and complete Alaska Heat Smart's home energy assessment.
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does Alaska Carbon Reduction Fund Heat Pump Program pay?
Covers the heat pump installation at no cost to eligible households, often combined with an $8,500 ACES rebate. Alaska Heat Smart reports stacked projects receive an average of $2,500 of ACRF help on top of ACES. Funding is limited and first come, first served.
Is there an income limit?
Household income must not exceed 80% of the area median income (AMI) for your community, using the same AMI values as ACES. An income and asset check is done.
Do renters qualify?
You must own the home you're applying for.
Do I need approval before I buy?
Yes. Apply before you buy or install anything; purchases made first don’t qualify. A home energy assessment must show your home qualifies and a heat pump is cost effective. Apply and complete Alaska Heat Smart's home energy assessment.
What’s the deadline?
No fixed deadline. Apply any time while it’s open.
Can I combine it with other rebates?
Yes, with ACES: Accelerating Clean Energy Savings. See Use it with.
Is it still available?
Yes. It was open when we last checked, on October 27, 2026.
Plain words
Words used on this page
- AMI
- Area median income: the middle household income where you live, set each year by HUD.
References
Sources
This page is built from these official pages, run by the program itself.
- Alaska Carbon Reduction Fund (Alaska Heat Smart)
- Update: AK Carbon Reduction Fund (Alaska Heat Smart, October 13, 2026)
- Alaska Heat Smart: Contact
When one of these pages changes, we re-check this page against it.
Nearby
More in Alaska
All of Alaska
Energy Efficiency Interest Rate Reduction (EEIRR)
Amount varies
A lower interest rate on an Alaska Housing (AHFC) home loan when the home is energy-rated 5 Star Plus or 6 Star, or when you raise an existing home's energy rating within a year of closing. Cuts range from 0.125% to 0.750% on the first $250,000 of the loan.
Checked Oct 27, 2026
Parts of Alaska
Heat Pump Loan Program
Up to $20,000
Low-interest personal loans for heat pump installation in coastal Alaska, arranged by Alaska Heat Smart. True North FCU lends up to $20,000 for up to 60 months across the ACES region; Tongass FCU lends up to $15,000 in Sitka. An Alaska Heat Smart home energy assessment is required.
Checked Oct 27, 2026
Parts of Alaska
Home Energy Assessment Program
Work done at no cost
A no-cost home energy consultation from Alaska Heat Smart, in person or virtual, for homes in the coastal ACES region from Metlakatla to Kodiak. You get a report on which heat pump would suit your home, issues to fix first, and available rebates and loans.
Checked Oct 27, 2026