Can Heat Pumps Keep Houses Warm, Cool Costs?

Keeping homes warm in the winter without breaking the bank is an annual challenge for many Alaskans. As temperatures drop, the heating costs go up, which led to an important question – is there a way to heat homes at a lower cost?

One option Alaska Housing Finance Corporation has been looking at is whether air source heat pumps can be efficient in cold weather climates and if they reduce costs. AHFC has been involved in residential heat pump research around the state for several years. One of those studies began about a year ago in Seward.

Phil Kaluza is a long-time Alaskan retired from AHFC and now a resident of the town. Most of his career has been spent in the energy efficiency field, so he was happy to participate when the study came to Seward.

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“I’ve always been intrigued by heat pumps, just the concept of how it can take heat out of cold air and move warm air inside of a house. With these heat pumps, we’re actually able to pull heat out of the outside air and through the magic of refrigeration, deliver that heat inside the house without actually burning a fossil fuel like heating oil to provide those BTUs.”

– Phil Kaluza, Part of an AHFC Energy Efficiency Study

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Seward Proves an Ideal Testing Spot

Seward provides a good testing ground. Though it gets cold in the winter, it’s still milder than other areas of the state. Most homes rely on electricity, heating oil, wood stoves or all of the above, which provides different heat source comparisons to determine if heat pumps would offset those costs.

The study is monitoring energy use of 12 heat pumps in Seward. The first steps in the study were to make sure they would work for a sustained period of time. Now, the data will be analyzed, providing estimates of the total usage for the various homes and determining if there were cost savings.

Seeing a Benefit

Phil helps to coordinate installation and monitoring with Seward residents, including Darryl Schaefermeyer who has had his heat pump for more than five years. He has traditionally relied on electricity and a wood stove as heat sources, which led to an expensive heating bill in the winter.

“We start using the heat pump in about March, when it gets a little bit warmer. We shut the stove off and run this thing up until November and it’s pretty much our only source of heat during that time,” Darryl said. “Just to put it in economic terms, our utility bill dropped from $800 a month to $300 to $400 a month. We’re still spending money for electricity and wood to put in the stove but it’s a reduction.”

Phil is hopeful the study will show the benefits of how heat pumps can warm homes more efficiently.

“If consumers can save on their heating costs and the environment benefits by us reducing our carbon footprint, it’s a win-win,” Phil said. “So, it’s pretty exciting.”

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Heat pump technology is improving, but it might not be an efficient choice for your home if you live in a climate where temperatures frequently dip below -5F. You can use this tool to help you determine whether the current heat pump technology will be an efficient choice for your household: https://heatpump.analysisnorth.com.

Even if a heat pump is not a good fit for your home right now, rapid technology improvements may mean that a heat pump could be an efficient choice for you in a few years. 

For further information about heat pumps in Alaska, visit the Alaska Environment Research and Policy Center.