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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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Manitoba hydro s earth power program l.jpg

Manitoba Hydro’sEarth Power Program

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Geothermal Heat Pumps

  • How They Work

  • Benefits

  • Manitoba Hydro’s Goals

  • Market Trends

  • Manitoba Hydro’s Earth Power Programs

    • Commercial

    • Residential

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How Does a Geothermal Heat Pump Work?

  • About 51% of the sun’s energy absorbed by earth

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Moving rather than Creating Heat

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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

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Heat Distribution Systems

  • Forced air

  • Radiant heating systems

  • Remember: Geothermal heat pumps warm or cool air in smaller temperature rises than conventional systems

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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

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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

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Manitoba Hydro Benefits

  • Customer satisfaction

  • Power Smart (demand-side management) initiative in all-electric areas

    = increased export revenues

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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

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“State of the Heat Pump Market in Manitoba”

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

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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

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Where is the Buried Treasure?

  • 50% in southwestern Manitoba

  • 30% in Winnipeg & surrounding area

  • Geographic distribution reflects development of industry infrastructure

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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

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Manitoba Industry Players

  • About 100 IGSHPA-accredited contractors throughout Manitoba

  • 15-20 vertical drilling rigs (and counting)

  • 2 Manitoba manufacturers (many distributors)

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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

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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

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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%.

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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

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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

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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

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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.

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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!

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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

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Contact Information:

Kristan Pearson

Heat Pump Marketing Specialist

Manitoba Hydro

Phone: 474-3242


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Manitoba Hydro

Home Comfort & Energy Savings Program

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1. Power Smart Energy Expert

2. Information

Renovation booklets

3. Home Energy Calculator

4. DIY Energy Assessments

Mail-in and Online

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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

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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

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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

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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

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Glamour Shots of Heat Pumps

Also helps heat DHW