The government of Canada's Manitoba province is offering local homeowners and homebuilders cash, tax credits, refunds and grants if they use geothermal energy in homes and buildings.

Minister of Science, Technology, Energy and Mines Jim Rondeau announced the incentives for Manitobans as part of a national program to reduce Canada's greenhouse gases and reduce energy bills of consumers.

Under the program, a geothermal heating system in new homes entitles owners to a $2,000 refundable Green Energy Equipment Tax Credit and $1,000 in grants. Existing homeowners who convert to geothermal energy will get $2,100 in grants.

Commercial building owners can get a refund up to 10 percent of the value of installed geothermal systems. The biggest incentive of $150,000 is for building owners who install district geothermal service systems.

Although geothermal systems are very expensive to install, Rondeau said homeowners can eventually recover the cost from 50 to 70 percent savings in conventional heating and cooling cost.