The federal Inflation Reduction Act set aside billions to subsidize the purchase of high-efficiency residential HVAC products, and many states and utility companies have incentives of their own.
But public awareness of those incentives is relatively low, and that presents a challenge — and an opportunity — for HVAC contractors who want to market their products and services using consumer incentives.
A 2024 survey of 400 homeowners by myCLEARopinion, a business research firm and part of BNP Media Inc., the parent company of The ACHR NEWS, found that nearly 66% had no knowledge of or familiarity with the IRA’s HVAC incentives. Another 28% reported having some knowledge or familiarity, while only 7% said they were extremely knowledgeable about the incentives. Homeowners’ responses to questions about other incentives, such as those offered by states, showed somewhat more awareness, with 45% of homeowners saying they had some knowledge of those incentives, but less than 10% reporting they were extremely knowledgeable.
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MARKETING OPPORTUNITY: A recent survey revealed that few homeowners reported being knowledgeable about the available incentives for efficient HVAC products, especially when it comes to those in the Inflation Reduction Act. Marketing experts say this is an opportunity for contractors to position themselves as trusted experts on the incentives. (Courtesy of myCLEARopinion Insights Hub)
The same survey also contacted 120 contractors, who reported high levels of knowledge of incentives. A sizeable majority of the contractors surveyed said they were either extremely knowledgeable or somewhat knowledgeable about the incentives.
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CONTRACTOR AWARENESS: A majority of contractors surveyed recently reported being either somewhat familiar or extremely familiar with available incentives for efficient residential HVAC equipment. (Courtesy of myCLEARopinion Insights Hub)
Marketing professionals say contractors should view that knowledge gap among consumers as an opportunity to position themselves as trusted experts when it comes to HVAC efficiency incentives, and educate customers and potential customers about the incentives.
“The ability to clearly explain how these incentives can offset initial costs can transform a discussion about price into one about value,” said Chris Hunter, principal industry advisor at ServiceTitan. “It positions the contractor as a guide, turning what might seem like a higher upfront investment into a long-term gain for the customer.”
“Who’s going to educate them on it if it’s not the trusted HVAC provider?” said Ben LeDonni, chief marketing officer at BNP Media and the head of BNP Engage, a digital marketing agency.
Much of marketing involves education, LeDonni said, and contractors are in a good position to be the educators. “The value you hold is in your knowledge,” he said.
On that front, there are tools to help both contractors and homeowners.
The N.C. Clean Energy Technology Center at North Carolina State University offers DSIRE, the Database of State Incentives for Renewables & Efficiency, a nationwide catalog of energy-efficiency incentives and policies that includes an incentive search feature. Rewiring America, a nonprofit that promotes electrification, offers an electrification savings calculator that can be embedded on contractors’ websites, plus its Personal Electrification Planner, which helps homeowners create custom plans to electrify based on their priorities and the characteristics of their homes.
More than a million users have accessed the savings calculator, and companies large and small have embedded it on their websites, said Alex Amend, director of communications at Rewiring America.
“Our goal is to make it as easy as possible for homeowners to understand the savings available to them so that they make the clean electric choice,” Amend said. “Savings not just on the front end, with the purchase price of equipment, but over the long term with energy savings.”
Experts say it’s worth the effort contractors may have to put in to learn about and explain incentives.
“The worst thing that can happen is to not offer or explain to a homeowner, and then they find out about it after the fact,” said Hunter. “That’s going to be a really terrible customer experience.”
“We don’t want contractors to leave money on the table and believe that these incentives, in addition to the performance superiority of clean electric appliances, will help draw in more homeowners,” said Amend.
Experts say contractors should take a multifaceted approach to educating customers and would-be customers about efficiency incentives. Among their recommendations:
- Take to social media, on platforms like Facebook Instagram, and LinkedIn, with posts and targeted ads to inform people about incentives.
“More people interact over social media with others than they do during the day in person,” said LeDonni.
“Many homeowners spend a lot of time online, and creating short, engaging posts or videos that explain the benefits of incentives can capture their attention,” said Hunter. - Write blog posts about the benefits of high-efficiency HVAC and available incentives.
“Use simple, clear language to make the information accessible,” LeDonni said. - Encourage customers who have benefitted from incentives to share success stories online, in reviews or customer testimonials.
“This can build trust and encourage others to take advantage,” LeDonni said. - Use targeted emails and customer newsletters to spread information about incentives and offer tips for improving HVAC energy efficiency.
- Use search engine optimization (SEO), making sure website content includes keywords related to incentives and high-efficiency HVAC.
- Consider paid advertising to target consumers who are searching online for HVAC equipment or energy efficiency incentives.
- Partner with HVAC manufacturers and local energy companies that have channels for spreading the word about incentives.
- Host in-person and virtual events, such as workshops and webinars, to talk up the benefits of high-efficiency HVAC and efficiency incentives.
- Have a helpline or chat function to assist customers who have questions about incentives, and follow up after installations to gather feedback and make sure customers know how to claim the incentives.
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