15 September 2011
In recent years, the growth of GSHP markets in Canada has shown a counterintuitive inverse relationship between installations in residential markets and single unit housing starts. Clearly, the various government and utility incentive programs available in Canada had a positive impact. However, analysis appears that the GSHP industry in Canada may not yet be ready to grow sustainably on its own environmental and economic merits. Evidence shows that market growth now relies on exogenous factors such as high fossil fuel prices and financial and incentive assistance programs. Although the authors see many opportunities for GSHP in Canada, there are still key non financial barriers to be overcome. Discipline in the labour market and standards / regulation may be a key to market growth in the medium and long term. This study is an initial effort to demonstrate that incentive programs have a lesser impact in the long term than thoughtful market development strategy.