Green energy tax credits in Manitoba: Geothermal and solar eligibility

Green energy tax credits in Manitoba: Geothermal and solar eligibility

Installing geothermal or solar systems can lower your energy bills, but the upfront cost is often the biggest barrier. Manitoba’s Green Energy Equipment Tax Credit helps offset that cost through a provincial tax credit for eligible clean energy equipment. If you’re wondering whether geothermal or solar qualifies—and how much support you can claim—this guide breaks it down clearly, with real program rules.

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How the Green Energy Equipment Tax Credit works in Manitoba

The Green Energy Equipment Tax Credit is a Manitoba provincial tax credit available to property owners and businesses that install approved green energy systems in the province. It applies to geothermal heat pumps, solar thermal systems, and biomass fuel energy equipment.

Here’s what you need to know.

Eligible technologies: geothermal and solar

Geothermal heat pump systems

Geothermal systems are eligible if they meet Canadian technical standards and are installed in Manitoba.

Key requirements include:

• The system must be new, not reconditioned or remanufactured
• It must meet Canadian Standards Association (CSA) requirements
• Costs must be incurred and paid by the claimant
• The system must be installed on Manitoba property

Geothermal projects are commonly used in commercial buildings, farms, and multi-unit residential properties. Residential property owners can also qualify, depending on how the system is used.

Solar energy systems: what qualifies and what doesn’t

This tax credit is limited to solar thermal energy systems, not solar photovoltaic (PV) panels that generate electricity.

Eligible solar systems must:

• Be designed to produce thermal energy (for space heating or hot water)
• Use solar collectors that meet CSA Standard F378-87 or an equivalent standard
• Be new equipment installed in Manitoba

If your project is focused on solar electricity (PV panels), it will not qualify under this specific tax credit.

Who can claim the credit?

Eligibility depends on who owns the property and installs the equipment.

You may qualify if you are:

• A property owner installing a geothermal heat pump system in Manitoba
• A purchaser installing a qualifying solar thermal system
• A business installing eligible biomass fuel energy equipment

Both individuals and businesses can claim the credit, as long as they pay for and install eligible equipment.

How much is the Manitoba green energy tax credit?

The Green Energy Equipment Tax Credit is worth between 7.5% and 15% of eligible costs.

Important details:

• The exact percentage depends on the type of equipment installed
• The credit is calculated based on eligible capital costs
• Any other government assistance you receive for the same project will reduce the amount you can claim

This is a provincial tax credit, not a cash grant. You claim it when filing your Manitoba tax return.

Tools like GrantHub’s eligibility matcher can help you filter clean energy programs by province and technology type in seconds, especially if you’re combining geothermal or solar thermal with other upgrades.

Claiming the credit

You claim the Green Energy Equipment Tax Credit through your Manitoba tax filings. To support your claim, you should keep:

• Detailed invoices showing equipment and installation costs
• Proof that the equipment meets CSA or equivalent standards
• Records of any other government funding received

Missing documentation is one of the most common reasons claims are delayed or reduced.

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Common mistakes to avoid

1. Assuming solar PV panels qualify
   Only solar thermal systems are eligible. Electricity-generating solar panels are excluded.

2. Buying used or refurbished equipment
   The credit only applies to new geothermal and solar thermal systems.

3. Ignoring funding stacking rules
   Other government assistance reduces your claimable amount. Failing to account for this can lead to reassessments.

4. Not checking technical standards in advance
   Equipment must meet specific CSA standards. If it doesn’t, the entire project may be ineligible.

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Frequently Asked Questions

Q: Is the Green Energy Equipment Tax Credit a grant or a rebate?
It’s a provincial tax credit, not a cash grant. You receive the benefit when you file your Manitoba tax return.

Q: Can I claim both geothermal and solar thermal systems on the same property?
Yes, if both systems are eligible and meet program requirements. Each system is assessed based on its own costs and standards.

Q: Are residential properties eligible in Manitoba?
Residential property owners may qualify, especially for geothermal installations. Eligibility depends on ownership and use of the system.

Q: Can I combine this credit with federal clean energy programs?
Yes, but any federal or provincial assistance you receive will reduce the eligible amount for this tax credit.

Q: Does installation labour count toward eligible costs?
Yes. Installation costs are typically included, as long as they are part of the eligible system and properly documented.

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Next steps

If you’re planning a geothermal or solar thermal project in Manitoba, confirming eligibility early can save you time and money. GrantHub tracks hundreds of active grant and tax credit programs across Canada—including clean energy incentives—so you can quickly see which options match your business, location, and project type.

See also:

• Energy Efficiency and Clean Tech Rebates for Canadian Businesses
• What Counts as a Clean or Low-Carbon Project? Eligibility Rules Explained
• How to reduce taxes and operating costs using Canadian government incentives