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Manitoba Hydro’s Earth Power Program. Geothermal Heat Pumps. How They Work Benefits Manitoba Hydro’s Goals Market Trends Manitoba Hydro’s Earth Power Programs Commercial Residential. How Does a Geothermal Heat Pump Work?. About 51% of the sun’s energy absorbed by earth.

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Presentation Transcript
geothermal heat pumps
Geothermal Heat Pumps
  • How They Work
  • Benefits
  • Manitoba Hydro’s Goals
  • Market Trends
  • Manitoba Hydro’s Earth Power Programs
    • Commercial
    • Residential
how does a geothermal heat pump work
How Does a Geothermal Heat Pump Work?
  • About 51% of the sun’s energy absorbed by earth
there are four types of loops
There are four types of “loops”…

1. Vertical Ground Loop

2. Horizontal Ground Loop

4. Open Loop - Two Wells or Body of Water

3. Closed Pond Loop

heat distribution systems
Heat Distribution Systems
  • Forced air
  • Radiant heating systems
  • Remember: Geothermal heat pumps warm or cool air in smaller temperature rises than conventional systems
customer benefits
Customer Benefits
  • Energy savings
    • Reduce heating costs by 50% to 80%
  • Environmentally friendly
    • No harmful greenhouse gas emissions
  • Comfortable
    • More even/uniform heating and cooling than conventional systems
customer benefits9
Customer Benefits
  • Air conditioning and heating in same unit
  • Safety - no flue, flames, or fumes (no carbon monoxide risk)
  • Quiet
  • Lower risk of vandalism & weather damage (since the unit is indoors)
  • Reduced structural requirements
  • Frees up space in commercial buildings
manitoba hydro benefits
Manitoba Hydro Benefits
  • Customer satisfaction
  • Power Smart (demand-side management) initiative in all-electric areas

= increased export revenues

manitoba hydro benefits11
Manitoba Hydro Benefits
  • Manitoba environmental benefits
    • 2003 residential CO2 emissions reduced by about 1,917 tonnes (7.1 tonnes per installed heat pump)
    • 2003 commercial CO2 emissions reduced by about 7,292 tonnes (55.4 tonnes per commercial heat pump project).
    • Total 2003 CO2 emission reduction of 9,209 tonnes.
  • Support business development in Manitoba
state of the heat pump market in manitoba
“State of the Heat Pump Market in Manitoba”

How can Manitoba Hydro help create a more widespread market for geothermal heat pumps?

manitoba hydro s earth power goals
Manitoba Hydro’s Earth Power Goals

Make geothermal heat pumps more accessible:

  • Increase awareness
  • Improve industry infrastructure
  • Mitigate high first cost barrier
    • Consider life cycle cost implications
where is the buried treasure
Where is the Buried Treasure?
  • 50% in southwestern Manitoba
  • 30% in Winnipeg & surrounding area
  • Geographic distribution reflects development of industry infrastructure
manitoba market watch
Manitoba Market Watch
  • Manitoba sales in 2002 = 400 units
  • Manitoba sales in 2003 = 512 units
    • Approx. 30% - 40% of the Canadian market
  • Estimated Manitoba sales by 2006 = 800 units
    • 500 residential
    • 300 commercial
manitoba industry players
Manitoba Industry Players
  • About 100 IGSHPA-accredited contractors throughout Manitoba
  • 15-20 vertical drilling rigs (and counting)
  • 2 Manitoba manufacturers (many distributors)
hydro s commercial earth power programs
Hydro’s Commercial Earth Power Programs

The Commercial side of the heat pump program

is “Sold” under the Custom option of the

Commercial Construction & Renovation Program

hydro s commercial earth power programs19
Hydro’s Commercial Earth Power Programs

1. Is a geothermal heat pump right for you?

Feasibility study assistance:

  • Customer hires engineer or architect to analyze economics of heat pumps
  • We pay 50% of the first $5,000 of the study cost (and 25% thereafter to max of $10,000)
  • Average cost of study is $1,500 with a historical range of $400 to $7,800
hydro s commercial earth power programs20
Hydro’s Commercial Earth Power Programs

2. Hydro helps you install a geothermal heat pump system

Financial incentive:

  • Based on electricity savings calculated in study
  • Historically, the rebate is 35% of the capital cost with a range of 1% - 55%.
provincial tax credits for earth power
Provincial Tax Credits for Earth Power
  • “Manufacturing Investment Tax Credit”
  • Extended in 2003 budget to include (a) renewable energy and (b) energy efficient equipment
  • Benefit: deduct 10% of geothermal heat pump purchases from Corporation Income Tax
best times to buy economics commercial or residential
Best Times to Buy (Economics),Commercial or Residential
  • New construction
    • No technical or aesthetic barriers to installation
  • Replacement of existing heating system
  • Thinking of adding air conditioning
residential earth power loan
Residential Earth Power Loan


Maximum loan $15,000

Maximum term 15 years

Interest rate 6.5% (fixed)

  • Make additional payments without penalty after first 6 months
  • Conveniently re-pay on your Manitoba Hydro energy bill
residential earth power loan24
Residential Earth Power Loan

What is eligible?

  • Installation of geothermal heat pump systems (no air-source) for:
    • New homes
    • Existing homes

Eligible costs under the loan includes labour, materials, taxes, etc.

residential earth power loan25
Residential Earth Power Loan

Where do customers “get” loan?

  • Heat pump contractors
  • Contractors fill out paperwork for customer

See these sites for the latest list of IGSHPA-accredited installers!

typical residential economics
Typical Residential Economics

New home: 2,000 sq. ft. two-storey:

  • Geothermal heat pump system = $16,745
  • Electric system (A/C, DHW, heating) = $6,700
  • Electricity savings = $1,066/year or $88/month
  • Payback = 9.4 years
  • Additional monthly mortgage payment (20-year mortgage @ 6.15%) = $72/month
  • Cash ahead from the day you move in

Contact Information:

Kristan Pearson

Heat Pump Marketing Specialist

Manitoba Hydro

Phone: 474-3242




Manitoba Hydro

Home Comfort & Energy Savings Program

program features

1. Power Smart Energy Expert

2. Information

Renovation booklets

3. Home Energy Calculator

4. DIY Energy Assessments

Mail-in and Online

program features31

5. In Home Energy Evaluation

  • On-site inspection
  • Customized report, outlining where energy is lost and what upgrades can help
  • Home receives an EnerGuide rating
  • $75.00 plus GST
  • Can be charged to your energy bill
program features32

6. Power Smart Residential Loan

  • Contractor or DIY
  • Power Smart levels
  • $5,000.00
  • 6.5% annual interest rate (fixed for entire contract)
  • Quick approval
  • Added to energy bill
program features33

7. Federal Energy Efficiency Grant

  • Amount of grant depends on the difference between the home’s initial and follow-up Energuide rating
  • Must own and live in the home
  • Available until March 31, 2007
faith evangelical bible church
Faith Evangelical Bible Church
  • Cost of study = $1,500
  • February 1 , 2002
  • 4,225 square foot new building
  • Cost of heat pump system = $45,085
  • Cost of all-electric system = $18,500
  • Hydro rebate = $7,439
  • Annual energy savings = $4,962
  • Payback = 5.4 years before rebate

= 3.9 years after rebate

glamour shots of heat pumps
Glamour Shots of Heat Pumps

Also helps heat DHW