Where heat pumps pay off in Alaska

In a typical Alaska house heated with propane, a heat pump saves the most near Atka ($2,387 a year) and the least near Tanana ($456). Typical savings $1,250 a year on a $6,900 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 (you install it)
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 propane as today's heat. Change anything to match yours.

Every place in Alaska, propane heat

PlaceHeating todaySaves a year Pays back (contractor)Pays back (DIY)Heat from the heat pump
Atka $4,935 $2,387 4.9 years 3.0 years 100%
Saint George Island $5,995 $2,246 5.2 years 3.2 years 88%
Saint Paul Island (Saint Paul Is Airport) $6,164 $2,223 5.2 years 3.2 years 86%
Saint Paul Island (St. Paul 4 NE) $6,120 $2,209 5.3 years 3.3 years 85%
Dutch Harbor $4,785 $2,200 5.3 years 3.3 years 100%
Sand Point (Sand Point 1 ENE) $5,439 $2,161 5.4 years 3.4 years 92%
Cold Bay $5,533 $2,145 5.4 years 3.4 years 92%
Sand Point (Sand Pt Airport) $5,081 $2,095 5.6 years 3.5 years 95%
Sitka (Sitka 1 NE) $4,640 $2,048 5.7 years 3.5 years 97%
Kodiak $5,033 $1,999 5.8 years 3.6 years 96%
Kake $4,650 $1,980 5.9 years 3.7 years 96%
Yakutat $5,180 $1,976 5.9 years 3.7 years 91%
Sitka (Sitka Airport) $4,066 $1,954 6.0 years 3.1 years 99%
Gustavus $5,367 $1,950 6.0 years 3.8 years 88%
Petersburg $4,649 $1,935 6.0 years 3.8 years 93%
Gambell $7,439 $1,922 6.1 years 3.8 years 73%
Platinum $6,926 $1,922 6.1 years 3.8 years 71%
Wrangell $4,306 $1,892 6.2 years 3.2 years 97%
Hoonah $4,968 $1,876 6.2 years 3.9 years 94%
Seldovia $5,706 $1,875 6.2 years 3.9 years 90%
Metlakatla $3,842 $1,858 6.3 years 3.2 years 100%
Seward $5,582 $1,847 6.3 years 4.0 years 88%
Juneau $5,041 $1,817 6.4 years 4.0 years 88%
Valdez $5,887 $1,812 6.4 years 4.0 years 83%
Savoonga $7,563 $1,762 6.6 years 4.2 years 66%
Homer $5,689 $1,755 6.6 years 4.2 years 82%
Scammon Bay $7,472 $1,710 6.8 years 4.3 years 66%
Togiak $6,653 $1,675 7.0 years 4.4 years 68%
Toksook Bay $6,922 $1,658 7.0 years 4.4 years 68%
Girdwood $6,184 $1,486 6.2 years 4.4 years 77%
Skagway (Skagway Airport) $5,031 $1,475 6.2 years 3.7 years 89%
Skagway (Haines Airport) $5,149 $1,441 6.4 years 3.8 years 87%
Manokotak $6,705 $1,428 6.4 years 4.5 years 74%
Naknek $7,075 $1,421 6.4 years 4.7 years 65%
Clarks Point $6,658 $1,408 6.5 years 4.8 years 72%
Iliamna $6,729 $1,397 6.6 years 4.7 years 68%
Wales $8,404 $1,381 6.6 years 4.8 years 59%
Kipnuk $7,289 $1,380 6.6 years 4.7 years 65%
New Stuyahok $6,514 $1,380 6.6 years 4.5 years 73%
Aleknagik $6,708 $1,348 6.8 years 4.8 years 69%
Trapper Creek $6,456 $1,335 6.9 years 5.5 years 72%
Port Alsworth $6,818 $1,326 6.9 years 3.2 years 65%
Palmer $6,281 $1,309 7.0 years 3.4 years 73%
Sparrevohn Mtn Afs $8,284 $1,309 7.0 years 4.8 years 55%
Sterling $6,417 $1,301 7.0 years 4.8 years 70%
Marshall $7,165 $1,300 7.0 years 3.3 years 63%
Kivalina $8,808 $1,297 7.1 years 2.8 years 53%
Saint Marys $7,565 $1,292 7.1 years 2.7 years 62%
Wasilla $6,341 $1,270 7.2 years 3.5 years 70%
Sleetmute $7,870 $1,262 7.3 years 3.7 years 56%
Anchorage (Anchorage Ted Stevens Intl Airport) $6,127 $1,244 7.4 years 2.6 years 73%
Kenai $6,704 $1,242 7.4 years 3.4 years 64%
White Mountain $7,808 $1,232 7.4 years 3.6 years 55%
Red Dog Mine 3 SSW $8,401 $1,231 7.4 years 3.0 years 54%
Bethel $7,493 $1,228 7.5 years 3.5 years 58%
Soldotna $6,530 $1,225 7.5 years 3.3 years 64%
JBER (Bryant Army Airfield Heliport) $6,567 $1,224 7.5 years 3.6 years 65%
Anchorage (Anchorage Merrill Field) $6,251 $1,223 7.5 years 2.8 years 70%
Anchorage (Anchorage Lk Hood Sea Plane Ba) $6,081 $1,211 7.6 years 2.7 years 72%
Russian Mission $7,320 $1,207 7.6 years 2.9 years 59%
JBER (Anchorage Elmendorf AFB) $6,104 $1,206 7.6 years 3.5 years 70%
Kalskag $7,340 $1,190 7.7 years 3.4 years 56%
Anvik $7,722 $1,187 7.7 years 3.0 years 55%
Unalakleet $7,893 $1,178 7.8 years 2.9 years 53%
Takotna (Tatlina Airport) $7,946 $1,176 7.8 years 3.9 years 51%
Shaktoolik $8,088 $1,169 7.8 years 3.1 years 52%
Koyuk $8,007 $1,143 8.0 years 3.0 years 53%
Holy Cross $7,616 $1,137 8.1 years 3.2 years 54%
Denali National Park $8,361 $1,122 8.2 years 3.9 years 45%
Noorvik $8,494 $1,106 8.3 years 3.4 years 47%
Lake Minchumina $8,055 $1,094 8.4 years 4.3 years 46%
Fort Wainwright (Fairbanks 11 NE) $7,644 $1,074 8.5 years 3.3 years 49%
Atqasuk $9,951 $1,064 8.6 years 3.0 years 43%
Barrow (Barrow Airport) $10,546 $1,060 8.6 years 2.9 years 42%
Kiana $8,489 $1,060 8.6 years 3.5 years 45%
Barrow (Tqiavik Formerly Barrow 4 E) $10,507 $1,042 8.8 years 2.9 years 41%
Takotna (Mcgrath Airport) $8,235 $1,034 8.9 years 4.3 years 43%
Kaltag $8,323 $1,027 8.9 years 3.4 years 44%
Bettles Field $8,873 $1,026 8.9 years 3.9 years 40%
Northway $9,130 $1,023 9.0 years 4.8 years 37%
Galena $8,400 $1,013 9.0 years 4.6 years 41%
Klawock $3,470 $979 4.3 years 3.6 years 91%
Eielson AFB $8,351 $967 9.5 years 4.3 years 39%
Arctic Village $10,048 $964 9.5 years 4.4 years 33%
Fort Wainwright (Wainwright Aaf Airport) $8,183 $959 9.6 years 4.4 years 39%
Prudhoe Bay $10,547 $743 8.9 years 3.0 years 32%
Nuiqsut $10,391 $712 9.3 years 3.2 years 31%
Nenana $8,395 $570 9.2 years 4.7 years 32%
Fairbanks $8,382 $460 9.1 years 4.3 years 21%
Tanana $8,670 $456 9.2 years 4.4 years 19%

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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