With the rising cost of energy, HVAC contractors are in a unique position to offer their customers a reliable and cost-effective solution: efficiency. By helping homeowners and business owners make smart choices about their home or office’s heating and cooling systems, HVAC contractors can drive comfort, while reducing their clients' utility bills. When you focus on comfort, efficiency often follows - and represents a great opportunity to stand out from your competitors.
Why Selling Energy Efficient Solutions Stands Out
Selling energy-efficient solutions attracts customers who are interested in reducing their carbon footprint and saving money on their energy bills - but it also presents a significant opportunity for every firm.
Energy-efficient HVAC systems can save businesses owners anywhere from 20-34% on their energy bills annually, translating to substantial cost savings and long-term financial benefits for building owners.
But the benefit to the property owner doesn't end there - many property owners today can benefit from incentives that can dramatically reduce the upfront system cost. As more and more utilities are offering credits for energy efficiency upgrades, and distributor-focused midstream programs are on the rise, incentives represent an opportunity to convert homeowners to high efficiency systems - creating a triple win for everyone. Homeowners win with greater comfort and efficiency, contractors see higher ticket sizes and customer satisfaction, and our grid stability and efficiency improves. Ultimately, contractors can generate more revenue, but at a lower cost to homeowners.
With the passage of the Inflation Reduction Act, Homeowners have never been more aware of the benefits of energy efficiency and electrification. They want to reduce their energy costs and carbon footprint while enhancing their comfort at home. HVAC contractors that deliver on these demands are set to excel in today's market, by meeting customers where they are.
Building Value on Site with Energy Efficiency
Customers want solutions that are convenient and cost-effective. And though higher efficiency systems traditionally see higher upfront costs, highlighting incentives automatically adds value to a customer - by showcasing where a homeowner can save money and get a better system, while saving money over the long run, contractors excel.
1. Energy Audits to identify opportunities in the building envelope
During your home walk through, an energy audit helps identify areas where building's can improve energy efficiency.
With so many leaky, old homes across the country, there are many opportunities for improvement across the building envelope in every home, including insulation, windows, and doors. These provide opportunities to share value to customers and grow your business.
2. Financial Incentives for selling Efficiency for Business Owners & Building Owners
Selling energy efficiency upgrades to property owners not only benefits them but also provides financial incentives for a contractor's business. The Inflation Reduction Act (IRA) offers tax deductions for building owners who make energy-efficient improvements to their properties.
In addition to the benefits provided by the IRA, local utility programs also offer incentives for energy-efficient equipment. These programs make it easier for business owners and building owners to make the switch to more energy-efficient systems by lowering the upfront cost, while ensuring payment of the full, higher ticket size to contractors.
By promoting the benefits of energy efficiency to your customers, you can help them save money on their energy bills, qualify for tax deductions, and take advantage of utility program incentives. These financial incentives not only help your customers but also provide growth opportunities for your business.
3. Showcasing technology to sell efficiency
Technology can be a valuable aide to demonstrate the value you uniquely bring to that home. While Field Service Management software will help you get to the home - load calculation, energy modeling and sales software will help you stand out at the home.
In fact - you can show a few key things to homeowners with technology: incentives, energy savings, and why the solution is the perfect fit. Ultimately, this will help build trust with customers and differentiate the business from competitors.
1. Load calculation and energy modeling tools
Load calculation and energy modeling tools allow contractors to provide tailor-made solutions to their customer's energy efficiency needs, ensuring that they get the service they require and demonstrate the attention HVAC pros are paying to the details of a home or building on-site. By collecting data on the exact dimensions of the building, the type of insulation and windows installed, and the type of HVAC system in use, these tools can generate highly accurate models of a building's energy usage and loads.
Contractors can use these models to propose customized solutions for reducing a building's energy consumption and improving its overall energy efficiency. These solutions can include installing energy-efficient HVAC systems, sealing air leaks, and upgrading insulation.
2. Estimating savings and incentives on site
Keeping up to date on incentives is challenging - but showing your customers you know the options available at the federal and local level to them stands out. This includes taking advantage of distributor-focused midstream programs, utility program managers, and VIC programs.
3. Visuals that demonstrate the relationship of comfort and efficiency
You know better than anyone - when it comes to HVAC systems, customers are often primarily concerned with their own comfort.
By using visuals that demonstrate this relationship, HVAC contractors can help customers understand the importance of investing in energy-efficient systems. Tying together the impact of an oversized system, with their energy bills and system lifetime can be powerful to demonstrate the knowledge you uniquely hold. Finally, comparing the energy usage and cost of different types of HVAC systems side by side and demonstrating how investing in an energy-efficient system can pay off in the long run, can help you demonstrate your expertise to stand out.
In conclusion, selling energy efficiency can have tremendous benefits for HVAC contractors and property owners. By helping customers understand the long-term savings and environmental benefits of energy-efficient systems, contractors can increase revenue, enhance customer loyalty, and build their reputation as industry leaders. With the right tools and resources, such as visual aids, industry news, and performance contractor programs, HVAC contractors can successfully sell energy efficiency to both residential and commercial customers. It's a win-win situation for everyone involved - customers save money on their energy bills, while contractors can grow their business and contribute to a more sustainable future.