Today’s customers have an unprecedented number of rebates and incentives available to help lower the cost of new high-efficiency heating and cooling systems. For contractors, these programs present a tremendous opportunity for sales growth. However, customer skepticism can be a challenge. As customers explore these cost-saving opportunities and compare the benefits of premium systems, contractor knowledge of rebates and incentives is vital to guide customers through the process. 

Maximized cost savings for all customers

Historically, many incentive programs delivered cost savings through end-of-year tax rebates. Although these programs could be lucrative, they often created a challenge for customers who were unable to afford the upfront cost of the system. Today’s programs provide an opportunity to reach a broader customer base using a combination of point-of-sale discounts, tax rebates and affordable financing options. 

Combined, these programs can equip more customers with premium systems at considerably lower costs – and allow contractors to reach a more diverse customer base.  

Federal programs such as the High-Efficiency Electric Home Rebate Act (HEEHRA) provide point-of-sale rebates for low- and moderate-income households interested in converting their traditional home HVAC systems to high-efficiency heat pumps. The program offers an immediate discount to reduce financing and first-cost limitations many customers face, and it can cover up to 100% of an $8,000 heat pump for qualifying customers. Additionally, many states are poised to roll out Customers Managing Energy Savings (HOMES) program guidelines in the coming months. This provides customers at all income levels access to tax rebates on high-efficiency heating and cooling systems. 

When combined, these programs provide historic levels of federal funding that customers can use in addition to state, municipal and HVAC equipment manufacturer programs. 

In addition to rebates, there are several advantages for customers weighing financing options. Many utility companies – both electric and natural gas – offer incentives for customers who upgrade to high-efficiency heat pumps or furnaces. These programs often feature low interest rates and allow customers to combine the cost of their home comfort system with their monthly utility bill. Some HVAC manufacturers also offer simplified financing options that provide customers with fixed monthly payments. 

Leveraging digital storytelling to engage customers

Cost savings can often create a compelling offer for customers deciding when to upgrade their systems, but many are unaware of the opportunities available now and even for those who may be uncertain about how these programs work or how a premium HVAC system can impact comfort and efficiency. Over half of customers start their HVAC buying process with online research, even before contacting a contractor. That’s why it’s essential to begin the education process before a customer even sets foot in the door. 

By building a “digital brag book,” contractors can compile and share tools, testimonials and product information on their website and social media accounts to educate and inform customers before meeting face to face. On the website, tools, including incentive databases and savings calculators, allow customers to easily estimate cost savings. On social media, you can use a series of graphics and videos to focus on key details, allowing customers to build their knowledge.

As contractors develop strategies to leverage online marketing, manufacturers provide a valuable resource. Some manufacturers will provide web- and social media-ready content that can be easily branded and leveraged as part of the contractor’s marketing strategy. Manufacturers may also offer sales and marketing training opportunities to help contractors harness and grow these skill sets. 

For example, the Johnson Controls Ducted Systems Academy offers virtual and in-person training courses in sales and professional development designed to help contractors navigate challenging situations and achieve success. Additionally, contractors can advance their knowledge of premium and high-efficiency systems to prepare for their growing demand.  

Building confidence through expertise

Rebates and incentives can be an unfamiliar topic for many customers, and some may feel uncertain about the process. Contractors can help to ease their concerns by serving as an adviser. Customers often want to understand how rebate checks are issued and when they will be received. 

In some instances, the savings can be immediate, while other programs may mail a check directly to the homeowner.  Staying up-to-date on these processes and having documentation from each source can help overcome hesitation. Some contractors may use HVAC-specific customer relationship management (CRM) software to access a rebate and incentive database to gain insight. For those who do not have these programs in place, manufacturers can also be a helpful resource.   

In addition to understanding the details of rebate and incentive programs, contractors who can educate customers about the benefits of premium systems, such as variable-capacity air conditioners and heat pumps combined with ultra-high (up to 98%) efficient furnaces, also stand to gain increased profit margins. 

Many cost-savings programs apply specifically to high-SEER/EER equipment. Emphasizing how these systems can reduce utility bills and maintenance costs over time is another important part of the conversation. The digital brag book can come in handy in this phase also by providing a resource where contractors can highlight previous installations and customer testimonials that demonstrate these results. 

By educating customers before and during the sale, contractors can build relationships with customers and help them navigate their options. By combining cost-saving rebates and incentives with low-interest financing, customers can upgrade their homes with high-efficiency, premium HVAC systems while contractors grow their business. 

Ken North is Director Of Channel Development and Strategy at Johnson Controls.