A heat pump is the rare upgrade that heats and cools, cuts your bills, and qualifies for real money in Manitoba — if you pick the right type and claim it correctly. The trouble is that "heat pump" covers a few very different systems, and the rebates, financing, and tax credits each attach to different ones.
I've spent more than a decade in construction and trades, so I've watched plenty of these go in — the ones sized right that hum along through January, and the ones that leave a homeowner cranking the backup heat and wondering where the savings went. I'm a real estate agent, not the program administrator and not the installer, so treat this as a map of what's on the table in 2026 and always confirm the current details with the provider before you spend. Our site's Resources section links every program below.
Two kinds of heat pump, two kinds of money
The first fork in the road decides almost everything:
- Air-source heat pumps (ASHP) pull heat from outdoor air. They're cheaper to install and the most common choice. The cold-climate version (ccASHP) is the one built for our winters.
- Ground-source / geothermal heat pumps (GSHP) pull heat from the ground, which stays a stable temperature year-round. They cost far more upfront but perform beautifully in deep cold — and they unlock the richest incentives.
Keep that split in mind, because every rebate and tax credit below applies to one or the other.
Air-source heat pumps: the Efficiency Manitoba rebate
For most Winnipeg homes, a cold-climate air-source heat pump is the realistic entry point. Efficiency Manitoba pays a flat rebate:
- $2,000 for a centrally ducted ccASHP
- $1,500 for a ductless ccASHP
The rules that decide whether you actually collect:
- It must supplement an existing system — an electric resistance or natural gas system. Propane and fuel-oil conversions also qualify. The heat pump isn't approved here as a sole heat source.
- A registered contractor — the installer must be registered with Efficiency Manitoba. This is non-negotiable for the rebate.
- Apply within 90 days of completion. Miss the window and the rebate is gone, no matter how good the install.
- Primary residence, not new construction — this is a retrofit rebate for an existing home you live in.
You can also combine it with the Manitoba Hydro Home Energy Efficiency Loan to finance the equipment on your bill and still take the rebate — a common play is to spread the cost across the energy bill, then collect the rebate to bring the real number down.
Geothermal: no upfront cost through the Affordable Home Energy Program
Geothermal is a bigger commitment, but for the right home the financing is the headline. Through Efficiency Manitoba's Affordable Home Energy Program, a ground-source heat pump can mean no upfront cost for qualifying homeowners:
- A sizeable incentive (reported up to roughly $24,500), plus
- Interest-free financing of about $13,500, repaid at $75/month over 15 years on your Manitoba Hydro bill.
A few important caveats before you picture a free system:
- Bigger projects need an upfront contribution. Retrofit projects over $38,000, and replacement-system projects over $18,500, require a homeowner payment, and any required home-equipment upgrades may also need money up front.
- The financing is due on sale or transfer of the home, and it's non-transferable — so if a move and a project might overlap, plan for it. (The same "due on sale" rule applies to the Hydro on-bill loan.)
- Eligible geothermal can also qualify for the Manitoba Green Energy Equipment Tax Credit below — but you generally can't claim the same dollar twice across overlapping programs, so confirm the combined picture with Efficiency Manitoba first.
The Manitoba Green Energy Equipment Tax Credit
This one is provincial and refundable — meaning you can get the money back even if you owe little or no tax. It rewards green heating equipment installed in Manitoba:
- On eligible geothermal: 7.5% on the heat pump itself (if manufactured in Manitoba), plus 15% on the rest of the geothermal system (excluding the heat pump) when it's installed by an MGEA-certified installer — up to roughly 22.5% combined.
- 10% on solar thermal heating equipment.
The catches that matter: the geothermal system must use an MGEA-certified installer and meet CSA standards. This credit was made permanent in the 2023–24 budget and is available in 2026. It's administered through the tax system, so it's worth a quick word with a tax professional on how to claim it.
OHPA: extra help for oil-heated homes
If your home heats with oil, there's a federal program worth knowing — though it's genuinely niche in Winnipeg, where most homes run on natural gas or electric. The Oil to Heat Pump Affordability Program (OHPA) from Natural Resources Canada helps lower-to-median-income households switch from oil to a cold-climate electric heat pump:
- In Manitoba: a federal grant of up to $15,000 plus up to $5,000 from the province (up to $20,000 total), plus a one-time $250 payment.
- It can cover the heat pump, installation, electrical upgrades, oil-tank removal, and supplemental heating.
- Reported average savings of about $1,377/year after switching off oil.
The clock is the key detail: the Manitoba application deadline is July 31, 2026 (document upload by Jan 31, 2027; the program fully closes March 31, 2027). If you're one of the few Winnipeg-area homes still on oil — more common in some rural or older homes — this is the one not to sit on.
At-a-glance
| Path | What you can get | Who runs it |
|---|---|---|
| Air-source (ducted ccASHP) | $2,000 rebate | Efficiency Manitoba |
| Air-source (ductless ccASHP) | $1,500 rebate | Efficiency Manitoba |
| Geothermal (Affordable Home Energy) | No upfront cost for qualifying homes; incentive + interest-free financing | Efficiency Manitoba |
| Green Energy Equipment Tax Credit | Geothermal: 7.5% on a MB-made heat pump + 15% on the rest of the system; 10% on solar thermal (refundable) | Province of Manitoba |
| Oil to heat pump (OHPA) | Up to $15,000 federal + $5,000 provincial ($20,000) + $250 | Natural Resources Canada |
A contractor's eye: sizing for a real Winnipeg winter
Here's where I've seen homeowners get burned, and no rebate fixes it: the install matters more than the incentive.
- Insist on a true cold-climate (ccASHP) unit. A standard heat pump loses efficiency fast as the temperature drops; a cold-climate model is engineered to keep producing useful heat far below freezing. In our climate that distinction isn't marketing — it's whether the thing works in February.
- Right-size it; don't just "go big." An oversized unit short-cycles, runs less efficiently, and wears out sooner. A good contractor runs a proper heat-loss calculation on your house rather than guessing from square footage.
- Plan the backup deliberately. Because the rebate requires the heat pump to supplement an existing electric or gas system, the backup isn't an afterthought — it's part of the design. The system should hand off cleanly to backup heat on the coldest nights without you babysitting a thermostat.
- Tighten the envelope first. A heat pump in a draughty, under-insulated house has to work far harder. Insulation and air-sealing (both rebated separately by Efficiency Manitoba) make any heat pump smaller, cheaper, and more comfortable.
Get those four right and a heat pump is a genuinely great Winnipeg upgrade. Get them wrong and you'll be paying for backup heat all winter, rebate or no rebate.
This is general information, not financial, tax, or legal advice. Amounts, eligibility, and deadlines change often and may have been updated since this was published — always confirm current details directly with Efficiency Manitoba, Manitoba Hydro, Natural Resources Canada, or your tax professional before you spend or apply.
Thinking about a heat pump before you buy or sell?
A well-chosen, well-sized heat pump lowers bills, adds summer cooling, and can be a real selling point — a poorly sized one is just an expensive lesson. With a contractor's eye and a feel for what Winnipeg buyers actually value, I can help you judge whether a heat pump pays off in the home you have or the one you're sizing up.
Reach out for a free, no-obligation chat or home evaluation — honest answers from a local agent who knows Winnipeg homes inside and out. — Pavel Streltsov, Real Broker Manitoba Ltd.