Geothermal
Geothermal power is the collection of absorbed heat stored in the earth which is used to generate energy. Geothermal heat pumps use the earth’s renewable energy to heat/cool your home, are environmentally friendly and energy efficient. For more of a visual explanation of this underground process, go to http://www.earthpowerprogram.ca/ , click on the 1st link, then “view Geothermal video”.
Manitoba is the national leader (per capita) of geothermal installations, almost one third of the total annual Canadian installs.. There have been over 4,500 systems installed since 1990.
It may be right for your home. Geothermal power makes sense to new home builders as well as anyone in the position to replace an old conventional heating/cooling system in their home. It not only provides a constant or fixed cost for energy, but eventually a zero cost. Using conventional methods there would be no way of guaranteeing your monthly energy costs. The higher cost of the geothermal system, along with increased insulation controls those variables.
The benefits of geothermal technology include:
• Lower annual heating costs of up to 70 per cent
• Increased comfort and proven reliability
• Reduced environmental impact from lower energy consumption and no dependence on fossil fuels
• Increased value of your property making this a selling feature
Financing is available through Manitoba Hydro to help with the cost of installation. The bonus of the geothermal system is once the loan is paid then your monthly heating/cooling energy costs become minimal.
The benefits of a geothermal loan program include:
• Financing up to a maximum of $20,000 which is over and above the mortgage on your home
• Maximum term allowed is 15 years (minimum 1 year) at a 5 year fixed term of 4.9%
• Based on this rate, over 15 years, your monthly energy bill from hydro is fixed at $156.02
• The payment comes in the form of a monthly hydro bill, which is fixed for the term of loan
• After 6 months if you choose to make lump sum payments towards the loan, the payments go directly to the principle, then recalculating the interest rate against that principle owing and complete pay off can be at anytime with no penalty
• Once the loan is paid off, the only monthly cost remaining is to run the heat pump, compressor and fan to move the heating/cooling throughout, with continued reduction in energy costs up to 70%
• Eligible for new installations and retrofits as well
For more information, go to Manitoba Hydro
In addition, there is a provincial tax grant for $1000 for installing geothermal as well as a Green Energy Tax Credit of approximately $1500-$1800 once the system is installed, through your personal tax return for the year it was put in.