What are the incentives for geothermal energy development?

Residential and commercial earth energy systems may qualify for incentives under programs such as the federal Energuide program, and the Manitoba provincial government makes available loans of up to $15,000 for installation of geothermal heat pumps. In the early 1990s, Ontario Hydro funded a program that installed 6,749 residential units in areas not served by natural gas. Fortis BC, a utility in the B.C. Interior, offers a rebate for residential, commercial and institutional buildings that install geothermal heat pumps.

In general, the economic savings are sufficient on their own, and most systems “pay back” the additional installation costs through reduced energy bills in less than 10 years – sometimes less than five years. This is especially true in provinces such as Quebec, Manitoba and British Columbia that produce ample hydroelectricity. For example, Manitoba Hydro estimated that geothermal heat pumps can reduce annual home heating bills by $400 to $800 compared with natural gas; by $600 compared with all-electric heating; and by $700 to $1,800 compared with heating oil and propane. Geothermal heating and cooling provides greater predictability and stability of energy bills for homeowners concerned about high or volatile energy bills.

Source: Manitoba Ministry of Industry, Economic Development & Mines

Home heating - total annual costs
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