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.”

Contractor University members can click here to access all of our educational resources on energy efficient and sustainable systems as well as other subjects to continue growing your team’s collective knowledge.