Province offers incentives for geothermal heating and cooling

A new provincewide program gives  $3,000 in incentives to Manitobans who install geothermal systems when building a new home, and $2,100 when converting an existing home to geothermal. 

The province said the program is  designed to help reduce greenhouse gases.

“We believe this program will help Manitobans make the choice to use this proven technology to reduce their energy bills while helping us reach our Kyoto target,” said Manitoba Science, Technology, Energy and Mines Minister Jim Rondeau.

The program, designed to expand on an industry that has already seen 6,000 Manitobans convert to geo-thermal heating and cooling systems, contains the following components:

• For geothermal installations in new homes, Manitobans are eligible to receive up to $3,000 in incentives including a refundable Green Energy Equipment Tax Credit worth about $2,000 and a $1,000 grant.

• For conversions in existing homes, Manitobans are eligible to receive a refundable Green Energy Tax Credit worth about $2,100. When included with existing federal grants, owners of existing homes could receive up to $5,600 in incentives.

• Commercial building owners are eligible to receive up to 10 per cent of the value of their installed systems.

• Building owners who install district geothermal service systems are eligible for up to $150,000.

The Manitoba government will also provide financial assistance to the industry to expand their drilling capacity.

“These incentives will help reduce upfront costs with this technology while complementing existing financial support available from the federal government and/or Manitoba Hydro,” said Rondeau.

Rondeau said a homeowner who installs a $22,000 high-efficiency geothermal system into their existing home and receives a $5,600 incentive and a 4.9 per cent loan from Manitoba Hydro could see the investment returned in just seven years.

The Climate Change and Emissions Reductions Act was passed earlier this year and is supported by Beyond Kyoto which includes 60 actions such as clean-energy expansion, which includes energy-efficiency initiatives and the further development of hydro, wind and geothermal technologies.

The Manitoba Geothermal Energy Alliance will help to assess geothermal options and specific needs for Manitobans, providing accredited installers and accessing various provincial, federal and Manitoba Hydro incentives. For more information, visit