Heat pump & electric heating cost in Alaska

Updated August 2026 · average residential electricity rate

Quick answer: at Alaska's 24.9¢/kWh (#44 cheapest of 51), a heat pump delivers heat at $24.33/MMBTU and electric resistance at $72.98/MMBTU. For a 2,000 sq ft cold-climate home, that's about $2,189 vs $6,568 per season — with gas at national-average prices keeping a slight edge over the heat pump.

Compare every fuel at Alaska electric rates

Electricity below is preset to 24.9¢/kWh; gas, oil, propane, pellets and firewood start at national averages — edit them to your local quotes.

Estimated heating load: 81 million BTU/season — a rough figure; insulation and thermostat habits move it a lot.

Season cost by fuel (edit any price — it's your local number that matters)

🔥 Natural Gas cheapest$17.78/MMBTU$1,440/season

900 therms · 90% AFUE furnace (standard 80%, condensing up to 97%)

🪵 Wood Pellets $18.94/MMBTU$1,534/season

6.1 tons · 80% efficient pellet stove (75–85% typical)

🔥 Firewood $19.48/MMBTU$1,578/season

5.3 cords · 70% efficient modern EPA wood stove (open fireplaces can be 10% or worse)

♻️ Heat Pump $24.33/MMBTU$1,970/season

7,913 kWhs · season-average COP ≈ 3.0 for a modern cold-climate air-source unit (2.0–4.0 depending on climate)

🛢️ Heating Oil $29.73/MMBTU$2,408/season

688 gallons · 85% AFUE oil furnace/boiler (older units 80%, new 87%+)

🫙 Propane $32.44/MMBTU$2,628/season

984 gallons · 90% AFUE propane furnace (condensing up to 97%)

Electric Resistance $72.98/MMBTU$5,911/season

23,740 kWhs · baseboards, electric furnace or space heaters — 100% efficient at the unit, but every BTU is made from scratch

Estimates: national-average prices (sources on each fuel page) and typical system efficiencies. Your utility bill has your real per-unit price — plug it in above for a number you can act on.

FAQ

How much does a heat pump cost to run in Alaska?+

At Alaska's average rate of 24.9¢/kWh, a modern heat pump (season-average COP 3) delivers heat at about $24.33 per million BTU — roughly $2,189 per season for a 2,000 sq ft home in a cold climate.

Is electric heating expensive in Alaska?+

Electric resistance heating (baseboards, electric furnace) costs about $72.98 per million BTU here — 3× what a heat pump pays for the same warmth, because a heat pump moves heat instead of making it.

Is a heat pump cheaper than gas in Alaska?+

At current averages, gas keeps a small edge: about $17.78/MMBTU for a 90% furnace at the national-average gas price versus $24.33 for a heat pump at Alaska electric rates. A cheaper electric plan or a high-COP unit can flip it.

Heating is only part of the bill — see what every other appliance costs to run in Alaska at the same electricity rate.

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