MeterMath

Heat pump Alaska

Heat pump vs gas heating cost in Alaska

$1,047 a year more to heat a typical Alaska home with a heat pump than with a gas furnace.

A typical home here burns about 810 therms of gas a year for heat, about $1,377 at the national average of $1.70/therm. A heat pump would use about 8,408 kWh instead, $2,424 at 28.83¢/kWh. Electricity would have to fall to 16.4¢/kWh, or gas rise in price, before the heat pump became the cheaper way to heat.

Prices updated October 2026 from EIA, AAA and BLS data.

How you heat now
therms/yr
 
$/therm
 
¢/kWh
 
Efficiency, upfront cost and rebates
%
Older furnaces 78 to 80, new 90 to 97.
 
$
Heat pumps also replace your AC.
$
State, utility or HEAR rebates.

How Alaska compares

Ranked by yearly saving against gas, Alaska is 50th of 51. At U.S. average figures a heat pump saves $27 a year. Alaska has the 6th most expensive residential electricity of the 50 states and DC at 28.83¢/kWh, 57% above the U.S. average of 18.31¢.

Alaska is a cold-climate state, with an estimated 9,000 heating degree days a year, so the calculator uses a lower seasonal COP of 2.4. Cold-climate heat pumps rated for low temperatures can do better.

Against propane the heat pump costs $192 a year more, against heating oil it saves $950 a year, and against electric baseboard heat it saves $3,394 a year.

Heating nowNow, per yearHeat pumpDifference
Natural gas furnace$1,377$2,424−$1,047
Propane furnace$2,233$2,425−$192
Oil furnace$3,372$2,422$950
Electric baseboard$5,818$2,424$3,394

Every neighboring state does better against gas, led by Washington at $176 a year saved.

StateElectricitySaving vs gas a year
Washington14.71¢$176
Oregon15.97¢$113
Hawaii48.00¢−$102
Alaska28.83¢−$1,047

More for Alaska

What these numbers assume

  • A heating load estimated from about 9,000 heating degree days a year: 810 therms of gas, 886 gallons of propane, 621 gallons of oil or 20,179 kWh of baseboard heat.
  • Natural gas at $1.70/therm, the U.S. city average for September 2026. Gas prices vary a lot by state and utility, so enter the price per therm from your bill.
  • Propane at $2.52 and heating oil at $5.43 a gallon, EIA forecasts for winter 2026–27.
  • Furnaces 85% efficient (oil 80%), and a heat pump with a seasonal COP of 2.4.
  • No federal tax credit: Section 25C ended for equipment placed in service after December 31, 2025.

Change any of them in the calculator above to match your own bills. The formulas are on the main heat pump calculator.

Sources

  • Electricity price: EIA Electric Power Monthly, Table 5.6.A (July 2026 data).
  • Natural gas: BLS U.S. city average, September 2026.
  • Propane and heating oil: EIA Short-Term Energy Outlook winter forecast, October 2026.
  • Heating degree days: MeterMath rounded estimate for the state.
  • Tax credit status: Public Law 119-21.