Energy-efficient home improvements are a win-win. For homeowners, it can help them save money on their energy bills and make their homes more resilient against extreme weather. For contractors, it creates an opportunity to sell higher-quality products throughout the year.
However, many homeowners may still be hesitant to take on these higher cost projects, even with the savings that can come from these upgrades. So, how can you help customers on their energy-efficiency journey— and grow your margins along the way?
Communicate the benefits of energy efficiency
- Rewiring America estimates that home electrification can save homeowners around $1,800 per year. Meaning upgrades are not only good for the planet, they’re good for the budget too.
- Higher quality upgrades are more efficient and can maximize savings. You can help your customers afford more and better upgrades with tools like financing options that offer low monthly payments.
- Around 42% of our energy-related emissions come from the home. With 70% of homeowners worried about the effects of climate change, sustainable home improvements are a great way to lower their footprint.
Explain the Inflation Reduction Act
- More homeowners may want to make upgrades due to rising utility rates and the new Inflation Reduction Act (IRA) incentives. But the transition can’t happen without knowledgeable contractors explaining the process.
- Contractors can get new customers started on their efficiency journey and revisit old customers with IRA opportunities. This provides the chance to upsell project bundles— increasing homeowner savings and your business margins.
- Incentive stacking is another benefit homeowners need to know about; it’s used to describe the multiple savings a household can receive through the IRA. For example, a homeowner may receive a water heat pump tax credit, plus an energy efficiency rebate, in addition to any state and local utility rebates offered. Incentive stacking could put a large sum of the project cost back into homeowners’ pockets.
*statistics from the Inflation Reduction Act Bill (Text: H.R.5376)
Show customers how one project can lead to the next
- Converting to a 100% clean energy house all at once may feel overwhelming to a homeowner. And few can afford to tackle all of these projects at once. Instead, help your customers see what their next project could be.
- If a customer is installing solar panels, mention they may want to consider a high-efficiency HVAC system or upgraded circuit panel. Then to conserve energy, their next project might be energy-efficient windows and doors. Someone who just bought an electric vehicle may be looking to add an EV charger, and then install solar panels and battery storage.
- Use electrification as an opportunity to establish a long-term relationship with your customers. Help them see how they can improve their home’s comfort and save money with energy-efficient upgrades. If something is outside your area of specialty, connect with other contractors and refer customers to each other. Or think about expanding your expertise to match growing demand.