Where heat pumps pay off in Alaska

In a typical Alaska house heated with oil, a heat pump saves the most near Barrow (Barrow Airport) ($7,955 a year) and the least near Tanana ($3,709). Typical savings $4,950 a year on a $11,300 heating bill. Pays for itself within 10 years in 100% of its ZIP codes with a hired installer, 100% if you install it yourself.

Same typical house everywhere: 1,800 sq ft, built 1970 to 1989, heating costs only, 90 places in Alaska. How

Show Savings a yearPayback time
Installed by A contractorYou (DIY)
Yearly savings on heating (hired installer)
Costs more Under $100 $100-300 $300-600 $600-1,000 $1,000-2,000 $2,000-4,000 $4,000+

Alaska at a glance

Gas heat

Under $100 a year

Pays for itself within 10 years in 0% of its ZIP codes with a hired installer, 0% if you install it yourself. Typical heating bill today $3,350.

Oil heat

$4,950 a year

Pays for itself within 10 years in 100% of its ZIP codes with a hired installer, 100% if you install it yourself. Typical heating bill today $11,300.

Propane heat

$1,250 a year

Pays for itself within 10 years in 100% of its ZIP codes with a hired installer, 100% if you install it yourself. Typical heating bill today $6,900.

Electric baseboard heat

$12,400 a year

Pays for itself within 10 years in 100% of its ZIP codes with a hired installer, 100% if you install it yourself. Typical heating bill today $18,200.

Model your own house

These open the home model at the place with the typical house filled in and oil as today's heat. Change anything to match yours.

Every place in Alaska, oil heat

PlaceHeating todaySaves a year Pays back (contractor)Pays back (DIY)Heat from the heat pump
Barrow (Barrow Airport) $17,208 $7,955 3.4 years 3.2 years 89%
Barrow (Tqiavik Formerly Barrow 4 E) $17,145 $7,812 3.5 years 3.2 years 88%
Atqasuk $16,239 $7,347 3.7 years 2.3 years 85%
Wales $13,714 $7,227 3.7 years 2.3 years 99%
Kivalina $14,372 $7,074 3.8 years 2.4 years 95%
Prudhoe Bay $17,210 $7,065 3.8 years 2.9 years 79%
Red Dog Mine 3 SSW $13,709 $7,052 3.8 years 2.4 years 97%
Nuiqsut $16,956 $7,003 3.9 years 3.0 years 80%
Sparrevohn Mtn Afs $13,518 $6,795 4.0 years 2.5 years 95%
Koyuk $13,065 $6,708 4.0 years 2.6 years 97%
Anvik $12,600 $6,463 4.2 years 2.6 years 98%
Takotna (Tatlina Airport) $12,966 $6,408 4.2 years 2.7 years 95%
Shaktoolik $13,198 $6,375 4.2 years 2.7 years 93%
Noorvik $13,860 $6,370 4.2 years 2.7 years 89%
Unalakleet $12,880 $6,338 4.3 years 2.7 years 93%
Kiana $13,852 $6,302 4.3 years 3.3 years 89%
Gambell $12,139 $6,067 1.9 years 2.0 years 95%
Fort Wainwright (Fairbanks 11 NE) $12,474 $6,040 4.5 years 2.9 years 94%
Saint Paul Island (Saint Paul Is Airport) $10,058 $5,974 2.0 years 1.2 years 99%
Saint George Island $9,782 $5,944 2.0 years 1.2 years 100%
Saint Paul Island (St. Paul 4 NE) $9,987 $5,928 2.0 years 1.7 years 99%
Lake Minchumina $13,144 $5,893 4.6 years 2.9 years 87%
Kaltag $13,581 $5,812 4.6 years 2.9 years 82%
Arctic Village $16,395 $5,810 4.6 years 3.0 years 71%
Savoonga $12,341 $5,758 2.0 years 2.0 years 93%
Bettles Field $14,479 $5,702 4.7 years 3.0 years 76%
Platinum $11,302 $5,693 2.0 years 2.1 years 94%
Scammon Bay $12,192 $5,678 2.0 years 2.0 years 93%
Northway $14,899 $5,626 4.8 years 3.0 years 75%
Cold Bay $9,029 $5,594 2.1 years 1.2 years 100%
Galena $13,707 $5,578 4.8 years 3.0 years 79%
Sand Point (Sand Point 1 ENE) $8,875 $5,555 2.1 years 1.3 years 100%
Atka $8,054 $5,505 2.1 years 1.2 years 100%
Seldovia $9,312 $5,414 2.2 years 1.8 years 100%
Toksook Bay $11,295 $5,404 2.2 years 2.2 years 94%
Valdez $9,606 $5,380 2.2 years 1.8 years 99%
Sand Point (Sand Pt Airport) $8,292 $5,282 2.2 years 1.3 years 100%
Seward $9,108 $5,279 2.2 years 1.9 years 100%
Togiak $10,856 $5,260 2.2 years 2.2 years 93%
Dutch Harbor $7,808 $5,222 2.2 years 1.3 years 100%
Homer $9,283 $5,187 2.2 years 1.9 years 99%
Gustavus $8,758 $5,184 2.2 years 1.4 years 98%
Kodiak $8,212 $5,164 2.3 years 1.4 years 100%
Yakutat $8,453 $5,162 2.3 years 1.4 years 99%
Saint Marys $12,344 $5,112 2.4 years 2.6 years 89%
Kipnuk $11,894 $5,074 2.2 years 2.6 years 89%
Manokotak $10,940 $5,048 1.8 years 2.2 years 87%
Marshall $11,692 $5,036 2.5 years 2.2 years 90%
Naknek $11,545 $5,023 2.2 years 2.2 years 89%
Hoonah $8,107 $4,971 2.3 years 1.4 years 100%
Sterling $10,471 $4,970 2.3 years 2.4 years 92%
Sitka (Sitka 1 NE) $7,572 $4,969 2.3 years 1.4 years 100%
Clarks Point $10,865 $4,959 1.8 years 2.3 years 86%
Girdwood $10,090 $4,919 1.9 years 2.4 years 90%
White Mountain $12,740 $4,910 2.2 years 2.6 years 84%
Sleetmute $12,843 $4,910 2.2 years 2.6 years 83%
Kake $7,587 $4,901 2.4 years 1.4 years 100%
New Stuyahok $10,630 $4,895 1.9 years 2.3 years 88%
Juneau $8,227 $4,895 2.4 years 1.4 years 99%
Trapper Creek $10,535 $4,854 1.9 years 2.4 years 88%
Aleknagik $10,946 $4,822 1.9 years 2.3 years 84%
Petersburg $7,587 $4,819 2.4 years 1.4 years 100%
Bethel $12,228 $4,818 2.3 years 2.2 years 85%
Soldotna $10,656 $4,781 2.4 years 2.4 years 89%
Russian Mission $11,945 $4,767 2.3 years 2.2 years 87%
Anchorage (Anchorage Ted Stevens Intl Airport) $9,998 $4,742 1.9 years 2.4 years 93%
Palmer $10,249 $4,724 1.9 years 2.4 years 88%
Wasilla $10,348 $4,684 2.0 years 2.4 years 87%
Iliamna $10,981 $4,665 2.0 years 2.2 years 79%
Holy Cross $12,428 $4,629 2.4 years 2.8 years 83%
Anchorage (Anchorage Lk Hood Sea Plane Ba) $9,923 $4,627 2.0 years 2.4 years 91%
Kalskag $11,978 $4,625 2.4 years 2.8 years 83%
Wrangell $7,027 $4,604 2.5 years 1.5 years 100%
Skagway (Haines Airport) $8,402 $4,583 2.0 years 1.6 years 98%
Anchorage (Anchorage Merrill Field) $10,200 $4,579 2.0 years 2.4 years 87%
Skagway (Skagway Airport) $8,210 $4,551 2.0 years 1.6 years 98%
Sitka (Sitka Airport) $6,635 $4,522 2.6 years 1.2 years 100%
JBER (Anchorage Elmendorf AFB) $9,961 $4,520 2.0 years 2.5 years 88%
Kenai $10,939 $4,501 2.0 years 2.4 years 79%
Port Alsworth $11,126 $4,489 2.0 years 2.9 years 75%
JBER (Bryant Army Airfield Heliport) $10,716 $4,472 2.0 years 2.5 years 81%
Metlakatla $6,269 $4,285 2.7 years 1.3 years 100%
Denali National Park $13,643 $4,251 2.6 years 2.9 years 68%
Takotna (Mcgrath Airport) $13,438 $4,100 2.7 years 3.0 years 69%
Klawock $5,662 $3,870 3.0 years 1.4 years 100%
Nenana $13,700 $3,827 2.9 years 3.1 years 64%
Eielson AFB $13,628 $3,795 2.9 years 3.2 years 63%
Fairbanks $13,677 $3,786 2.9 years 3.2 years 62%
Fort Wainwright (Wainwright Aaf Airport) $13,352 $3,718 3.0 years 3.3 years 63%
Tanana $14,148 $3,709 3.0 years 3.2 years 60%

Contractor installed unless marked DIY. Place names are the nearest ZIP code city to each weather station. Download all places.

How these numbers are made

Every place on the map is the area closest to one of 1,983 weather stations. For each one we ran the HeatPushers home model (the same code you can use for your own house) with the past year of hourly weather at that station (2025-10-28 to 2026-10-28) and the state's average electricity and fuel prices from the EIA (the US average where the EIA has no figure for the state).

  • The house: 1,800 sq ft, 2 stories, built 1970 to 1989 (wall insulation R-14, attic R-16), 3 bedrooms, thermostat at 70°F. The heat pump heats the whole house.
  • Heat today: gas furnace (80% efficient); oil boiler (85% efficient); propane furnace (92% efficient); electric baseboard (100% efficient). Furnace houses have ducts inside the heated space; boiler and baseboard houses have no ducts, so only ductless heat pumps count there.
  • The heat pump: out of 772 models sold online, the one with the lowest 10-year cost (price, installation and energy), in the number of units that costs least. The old heat stays and takes over in the hours it is cheaper to run.
  • Installation: a contractor at $2,500 per indoor unit, or yourself: $350 of tools once and $300 of materials per indoor unit.
  • Payback: what it costs up front divided by what it saves a year. Under 10 years means it pays for itself within the lifetime we assume.
  • Heating only. Cooling is left out. A heat pump also cools: against old central AC that saves a bit more; in a house without AC, using it in summer costs extra.
  • Not included: rebates and tax credits, electrical upgrades, new ductwork, heat-pump electricity rates and financing.
  • Shares of ZIP codes: each place counts by how many US ZIP codes are closest to its station, so cities count more than empty desert.

Your house is not this house. Size, insulation, prices and what you already own change the answer, often a lot. Use "Model your own house here" on the map, or start at the home model. More: full method and how we know.

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