PAYS Financing Program Makes Energy Efficiency More Accessible

November 5, 2012

Manitoba Hydro announced a new financing program today that makes energy efficiency accessible to more Manitoba homeowners or tenants who rent a home.

Using on-bill financing, the Power Smart Pay As You Save (PAYS) Financing Program provides Manitoba Hydro residential customers a convenient option for completing energy efficient upgrades to their homes while keeping upfront costs and future monthly finance payments as small as possible.

To accomplish this, PAYS Financing allows a customer to use their estimated annual utility savings gained from installing energy efficient measures, such as a high-efficiency furnace or attic insulation, to pay for those measures. There is no increase in bill payments because the monthly payment for funds borrowed from Manitoba Hydro must be less than the estimated annual utility bill savings averaged out on a monthly basis.

"Manitoba Hydro's new Pay As You Save program is the first of its kind in Canada. With huge upfront costs gone, more families will be able to make smart, energy efficiency improvements to their homes and save money each month," said Premier Greg Selinger. "Together, we're putting efficiency upgrades to heating, insulation and home water heating within the reach of more families."

The PAYS Financing Program is Manitoba Hydro's response to The Energy Savings Act enacted by the Province of Manitoba in June to encourage energy and water efficiency upgrades of existing homes and buildings.

PAYS Financing is unique compared to other Manitoba Hydro financing options because it is tied to the property, allowing a customer to transfer their financing to the next homeowner or tenant renting their property. (The owner of the property must have a tenant's consent to apply the PAYS monthly payment to their utility bill.)

The program covers upgrades to the following product categories:

  • Residential space heating equipment;
  • Insulation;
  • Residential water heating and conservation, including
    • drain water heat recovery systems,
    • toilets (in conjunction with one of the above energy efficient measure).

"Manitoba Hydro has long been a leader in providing financing for energy efficiency on our customer bills," said Scott Thomson, Manitoba Hydro's President and Chief Executive Officer. "Our Power Smart Residential Loan Program has already been recognized as the most successful on-bill finance plan in North America. The new PAYS Financing Program further extends the reach of our financing options and expands the number of customers we can help get the most from their energy."

Customers, working with a contractor who must apply on their behalf, can use the PAYS Online Calculator at to calculate the amount that can be borrowed from Manitoba Hydro. Simply entering a few details about their home and the cost of the retrofit under consideration will generate the monthly payments and the term of the loan.

To make payments lower, the term of the loan can be extended - up to 25 years depending on the upgrade. If the cost of the upgrade exceeds the amount that can be borrowed, the customer can pay the difference to the contractor upfront if they choose to proceed with the work.

The monthly payment is added to a customer's Manitoba Hydro energy bill. The annual interest rate -currently 3.9 per cent - is fixed for 5 years and the minimum allowable financing amount is $500.

PAYS Financing is not available for unoccupied homes, seasonal homes (cottages), apartment buildings, or new homes under construction.

More information on the PAYS Financing Program.