Heat Pump Government Rebates & Incentives

Heat pumps save you money on heating and cooling. Governments want you to buy heat pumps.

The results are great news for homeowners and business owners: There are government incentives to help you purchase heat pumps, and those same heat pumps will help you save money over time. That’s a lot of potential money in your pocket. We’re here to help you get as much out of those rebates and incentives as possible.

Key Takeaways

Governments offer rebates on heat pump systems to reduce carbon emissions and sell electricity to more profitable, out-of-province customers.
Heat pumps lower natural gas and electricity consumption, which can decrease your energy bill.
Heat pumps offer energy-efficient heating.
Efficiency Manitoba, Natural Resources Canada, and the Canada Mortgage and Housing Corporation all offer rebates and incentives for heat pumps.
Rebates and incentives for heat pumps are available for residential and commercial customers.
Other energy efficiency upgrades may also qualify for rebates.
Special rebates are available for people with limited income, Métis people, and Indigenous people.
People who are interested in heat pump rebates should carefully read the program terms before applying.
Apply for programs before work begins.
Always work with a qualified contractor.
SWK Mechanical is a qualified contractor; we can help you find the right heat pump rebate for your needs.

Why Governments Are Offering Heat Pump Rebates

Heat pumps are incredibly energy-efficient. Residential air-source heat pumps are estimated to reduce carbon emissions by 38%-53% when compared to a gas furnace, and to reduce 20-year global warming potential emissions by 53%-67%.

Governments are incentivized to fight against carbon emissions for a number of reasons:

They have voters who want them to champion climate action.
Reducing carbon emissions lowers pollution (which they may be accountable for).
Energy efficiency helps government-owned utilities like Manitoba Hydro sell to out-of-province customers for more money (as domestic consumption drops thanks to more energy-efficient devices).

These are just some of the reasons that governments provide incentives for purchasing heat pumps. Let’s take a look at some of the rebates available here in Manitoba:

Overview Of Rebates Available In Manitoba

Efficiency Manitoba Rebates

Efficiency Manitoba is a Manitoba Crown corporation that offers programs and services to Manitobans in an effort to reach energy-saving targets. It offers a number of heat pump programs, including:

The Ground Source Heat Pump Program allows qualifying homeowners to install a ground source heat pump (GSHP) with no upfront cost and interest-free monthly payments of $75 for 15 years.
The Air Source Heat Pump Rebate provides a $2,000 rebate for centrally ducted cold climate air source heat pumps or a $1,500 rebate for ductless cold climate air source heat pumps (new homes are not eligible).
The Energy Efficiency Assistance Program, which provides homeowners with limited total household incomes rebates and incentives, through this program, qualifying homeowners can get an electric air source heat pump retrofit for only $30 a month for 10 years.
Métis Energy Efficiency Offers, which subsidizes various energy efficient upgrades for Red River Métis Citizens, through this program, qualifying homeowners can get an electric air source heat pump retrofit for only $30 a month for 10 years.
The New Homes Program, which provides homeowners and home builders who build new homes with rebates based on general energy efficiency, heat pumps can help improve energy efficiency for the purposes of this rebate.
The Commercial Air Source Heat Pump Program provides heat pump rebates for commercial businesses on a project-by-project basis.
The Commercial Deep Energy Retrofit Program, which provides businesses with up to $12,000 for energy modelling and rebates of $2.25 to $6.00 per square foot for retrofits that reduce energy consumption, also offers a 25% bonus on the performance incentive for multi-unit residential buildings that install ground source heat pumps as their primary heating system.
The New Buildings Program, which provides up to $12,000 in energy modelling and up to $3.50 per square foot for new builds that meet energy efficiency requirements, including a 25% bonus on the performance incentive for multi-unit residential buildings that install ground source heat pumps as their primary heating system.
The Community Heap Pump Program provides incentives for Indigenous communities to install heat pumps in partnership with Raven Indigenous Outcomes Funds.

Canada Greener Homes Initiative

The Canada Greener Homes Initiative is a collection of programs designed to give Canadians greater access to energy-efficient upgrades for their homes. The programs are run by the federal government through Natural Resources Canada.

The Canada Greener Homes Loan offers qualifying Canadian homeowners interest-free loans of up to $40,000 for energy-efficient retrofits.
The Oil to Heat Pump Affordability (OHPA) offers qualifying Manitobans who are heating their homes with oil up to $20,000 to switch to energy-efficient heat pumps.
The Canada Greener Homes Affordability Program is a forthcoming program that will begin rolling out in 2025; it is slated to provide low-to medium-income homeowners and tenants with no-cost home retrofits.

CMHC And Other Financing Programs

The Canada Mortgage and Housing Corporation (CMHC) offers financing for some retrofits:

The Canada Greener Affordable Housing program provides multi-unit residential property owners who offer affordable housing with pre-retrofit and retrofit funding for deep energy retrofits.

Eligibility Requirements For Heat Pump Rebates

Homeowner Vs. Rental Property Eligibility

Most heat pump rebate programs in Manitoba require the applicant to own the home they want to retrofit; tenants who are interested in retrofitting a property should talk to the property owner, as they may qualify for heat pump rebates through programs like the Canada Green Affordable Housing program or the Commercial Deep Energy Retrofit program.

The Canada Green Homes Affordability Program may offer tenants incentives to install heat pumps, but this is somewhat unlikely; heat pump retrofits typically cannot be authorized by tenants, as they do not own the property.

Additionally, it should be noted that most programs are slated for primary residences; rental properties, vacation properties, and other secondary properties typically do not qualify for heat pump rebates.

System Specifications

Programs may require heat pumps to meet certain criteria to qualify. Notably, there are different programs for ground source and air source heat pumps.

Efficiency Manitoba has design requirements for some programs; for the Air Source Heat Pump Rebate, for example, the heat pump must be intended to provide the first stage of heating.

We highly recommend reviewing program requirements to understand if your system will qualify; fortunately, Efficiency Manitoba programs must also be handled by contractors registered with Efficiency Manitoba. These contractors will understand the system specifications required to qualify for each program.

Installer Requirements

Installers must be registered with Efficiency Manitoba for the installation to qualify for a program. SWK Mechanical is qualified for air source heat pump installations with Efficiency Manitoba.

How To Apply For A Heat Pump Rebate In Manitoba

Step-By-Step Process

There is no single step-by-step process to apply for a heat pump rebate; the application process will depend on the exact rebate you are applying for. There are, however, some general steps that most applicants must follow:

Ensure that you qualify for the heat pump rebate.
Find a contractor that is registered with the program you are applying for.
Apply for the program before work begins.
Provide all necessary documentation when the work is finished to receive the rebates.

Required Documentation

For many programs, your contractor will provide all of the documentation needed to apply for the rebate. In some programs, however, you may be asked to provide the documentation yourself. Documentation may include:

Technician specifications of the equipment installed
Heat loss/gain calculations
Invoices from contractors
Building Energy Models
Basis of Design (BOD)
Systems Manual

The type of documentation you will need to provide depends heavily on the rebates and incentives you are applying for. We highly recommend reviewing each program in detail to ensure you have the required documentation.

Common Mistakes To Avoid

Rebates for heat pumps are available because heat pumps are both desirable and costly; the result of making mistakes that disqualify you from getting a rebate is also extremely costly. When applying for a heat pump rebate, avoid:

Applying for rebates you do not qualify for
Beginning work before applying for the rebate
Working with contractors that are not registered with the program you are applying for
Installing equipment that does not qualify for the program you are applying for
Only applying for one program, many programs can be used in tandem for more savings

We’ve mentioned it before, but it bears mentioning again: Read all about the program you are applying for in detail. Contact qualified contractors, and confirm the details with them to ensure that you do qualify for the program. Contact the people administering the program if you are unclear on any details.

How Much Can You Save With Rebates?

Additional Long-Term Energy Savings

The homeowner was using an electric furnace; the air source heat pump reduces their electric heating costs by 25% on average each year. Their typical heating costs are $1,275 annually, and they save $318.75 on their heating.

This means that within 12 years, the homeowner will be saving money thanks to their choice to upgrade to a heat pump.

Sample Cost Breakdown

The homeowner also qualifies for the Energy Efficiency Assistance Program, giving them access to a heat pump for $30 a month over 10 years. In total, they pay $3,600 for their heat pump.

Why Choose SWK Mechanical For Your Heat Pump Installation

SWK is registered with Efficiency Manitoba to perform cold-weather air source heat pump installations; if you’re looking for a contractor to work with that qualifies for rebates, we can help.

Our team has decades of experience serving Winnipeg; SWK stands for service, workmanship, and knowledge, and we stand by our principles. We’ll help you choose the right, qualifying air source heat pump for your retrofit, and provide Efficiency Manitoba with all the documentation it needs to send you your rebate.