Environment minister calls program 'most generous offer' province has ever put forward
The Manitoba government wants homeowners to upgrade their heating and cooling systems to a geothermal pump it says could save them up to $1,000 annually on their bills.
Just how much they have to pay to get the heat pump system installed, though, depends on which incentive offer they qualify for.
The eligibility requirements and incentives are based on a homeowner's current heating fuel type, the suitability of a ground-source heat pump in rural and city settings and, in some cases, on household income:
Income-based offers.
First Nation communities.
Homeowners.
Homeowners with oil heating systems.
Multi-unit residential buildings.
"We know that this a big shift from traditional heating systems and that's why we're backing this program with some of the most generous financial supports Efficiency Manitoba has ever offered," said Environment and Climate Change Minister Mike Moyes at the launch on Tuesday of the province's affordable home energy program.
A long channel is dug through grass and mud
Crews dig a trench for a heat pump system installation just south of Winnipeg on Tuesday. (Tyson Koschik/CBC)
The cost of every installation will vary because of the diverse eligibility requirements, said Colleen Kuruluk, CEO of Efficiency Manitoba.
"When designing our offers, we recognize that every household is different and the needs of Manitobans are certainly unique. This ranges from the size of the home to the number of occupants to their income and ability to invest in energy efficiency," she said.
However, she estimates 60 to 75 per cent of the cost of the installation will be covered by the incentive. The remaining 25 to 40 per cent will be covered by the homeowner but paid back gradually as it is added to the monthly heating bill.
The repayment will be meted out so it is less than a person's former energy bill, so the savings from shifting to the new system will be realized immediately, Kuruluk said.
Efficiency Manitoba expects to spend about $10 million annually on the program, although Kuruluk admitted it could be more, depending on the response from the public.
And every switch to a ground-source heat pump is good for Manitoba Hydro as it reduces the demand for electricity, she said.
A ground-source heat pump moves heat rather than generating it. It extracts heat from the ground (even in cold temperatures) and transfers it indoors for heating, and then reverses that process to cool a home.
NDP alters election promise
During the 2023 election campaign, the NDP promised to fully cover the expense of the heat pump equipment and installation for 5,000 homes over four years.
Under the revised program, people won't need to pay any upfront costs for the installation — the contractor is paid directly by Efficiency Manitoba — but there is that remaining 25 to 40 per cent that will have to gradually be paid back.
Asked about the change, Moyes repeatedly insisted the new program is "by far the most generous offer that has ever been put forward by the Manitoba government."
He wouldn't give a timeline for completing 5,000 installations, saying it depends on the uptake by Manitobans.
Progressive Conservative environment critic Greg Nesbitt said in a statement Tuesday's announcement is "yet another example in a long list of broken NDP campaign promises."
The NDP pledged free heat pumps to 5,000 homeowners, he said, but now, "it's no longer free — it's added onto your monthly hydro bill after the fact."
Kuruluk, however, called the new program "a significant enhancement" over the grant program that was in place.
In some instances, such as in First Nation communities, the cost to the homeowner could be zero. Kuruluk said Efficiency Manitoba is working with an Indigenous-led capital fund that is, in turn, working with investors to cover the expense.
Other incentives are designed to support retrofits in multi-unit residential buildings.
"By helping Manitobans switch to heat pump systems, we are reducing household energy bills, reducing peak energy demands, reducing emissions and creating new opportunities for skilled workers," Moyes said, noting heat pumps use less than half the electricity of that required by a typical electric furnace in Manitoba.
The new program is part of Manitoba's overall affordable energy plan announced in September 2024, he said.
Manitobans can visit https://efficiencymb.ca/affordable-home-energy to learn more about Efficiency Manitoba’s heat pump offers and find the right offer for their needs.