Snapshot Survey Results | Energy Efficient/Sustainable Systems
In the October 2023 Snapshot Survey, we asked contractors about their approach to new high-efficiency systems and how customers are responding to them. Here’s one survey question and its results from the “Energy Efficient/Sustainable Systems” summary report, which will be available in its entirety to EGIA members on 11/20/23.
Do customers ask if they can have a less efficient system if it means more savings up front?
A striking 76% of contractors indicated that their customers have inquired about opting for less efficient systems to save on initial costs. Specifically, 15% reported that customers ask for less efficient systems “all the time.” Conversely, only 20% of respondents stated that customers never ask for less efficient systems.
This data highlights a significant inclination towards upfront savings over long-term efficiency, and raises questions about the effectiveness of contractor communication regarding the long-term financial benefits of high-efficiency systems.
This trend is particularly intriguing given the recent introduction of the Inflation Reduction Act (IRA) in 2023, allowing customers to receive a 30% tax credit (up to $1,200) on installation costs for qualifying high-efficiency systems, potentially making them as cost-competitive as their less efficient counterparts.
Here’s what an HVAC contractor from Oregon said in the survey:
“Most customers are sold on high-efficiency right away once we start telling them all of the financial benefits and savings. The environmental factors are just an added bonus for most people.”
