Federal energy tax credits are essential for Alaska’s energy independence

As someone who has spent three decades working in environmental policy and regulation in Alaska, I’ve witnessed firsthand how energy costs crush family budgets across our state. Today, I’m writing as a homeowner who recently made the switch from heating oil to a heat pump system — and as an Alaskan who believes our federal representatives need to defend the tax credits that make energy independence possible.

The numbers tell a stark story. Here in Juneau, we’re paying nearly $5 per gallon for heating oil. In rural communities, families face even steeper costs—up to $9 per gallon. These prices represent more than an inconvenience; they constitute a genuine crisis for working families trying to keep their homes warm through Alaska’s long winters. According to the Juneau Renewable Energy Strategy, nearly 70% of Juneau households rely on fuel oil for heating, making this cost burden nearly universal across our community.

My husband and I installed an 18,000 BTU Daikin heat pump system in March, replacing our old oil-fired boiler. The financial impact has been immediate and substantial. Previously, we burned through 22 gallons of heating oil weekly—that’s over $400 monthly just for heat. Since installing our heat pump, our electricity bills have run $110-120 per month, even during this unusually cold spring.

The federal 25C and 25D tax credits helped make this transition possible, and we’re looking forward to claiming our credit to help offset the cost of our installation. But we also moved forward because the economics made sense. The relatively mild climate of southern coastal Alaska and lower electricity rates, combined with modern heat pump efficiency — typically three times the efficiency of the average fuel boiler — create genuine savings that compound month after month, year after year.

This represents exactly the kind of energy independence that should appeal to conservative principles. Rather than remaining dependent on volatile global oil markets and complex supply chains, we’ve taken control of our heating costs using Alaska’s abundant hydroelectric resources. We’ve eliminated our vulnerability to geopolitical disruptions, supply chain breakdowns, and the boom-bust cycles that plague fossil fuel markets. As the Juneau Renewable Energy Strategy notes, Juneau’s small, captive market means we pay higher prices for imported fuels than most Americans, making us particularly vulnerable to international political and economic upheavals that drive price spikes. Juneau currently spends $140 million annually on fossil fuels that could instead circulate within our local economy, supporting jobs and families rather than enriching distant suppliers.

And the benefits extend beyond economics. Decommissioning our old 550-gallon fuel tank will free up valuable yard space and eliminate environmental risks like potential leaks. We will no longer worry about running out of fuel during extended cold snaps, and our new heat pump runs more quietly while maintaining more consistent temperatures throughout our home. We’re not alone in this experience: according to the Juneau Ductless Heat Pump Market Survey, 93% of heat pump owners in Juneau report being satisfied with their decision overall.

The federal tax credits play a crucial role in accelerating the adoption of heat pumps and other high-efficiency energy technologies. While my family would have proceeded without the tax credits due to the clear economic benefits, many Alaska families operate on tighter budgets. The Juneau Ductless Heat Pump Market Survey found that 43% of residents cited cost and expensive installation as the primary barrier to installing heat pumps. The credits help bridge this gap between upfront costs and long-term savings, making energy independence accessible to middle-class families who need it most.

U.S. Sens. Lisa Murkowski and Dan Sullivan must recognize that defending these tax credits means defending Alaska families’ ability to control their energy costs. This isn’t about environmental activism or federal overreach — it’s about economic survival, in a state where energy costs can consume enormous portions of household budgets.

The alternative — leaving Alaska families trapped in cycles of rising energy costs and supply uncertainty — serves nobody’s interests. We need representatives who understand that energy independence begins at home, delivered through practical solutions that make economic sense.

Alaska families deserve better than hoping energy prices moderate. We deserve the tools to take control of our energy future.