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In the world of residential HVAC products, “high-end” usually means high efficiency. The abundance of available incentives for high-efficiency equipment, from the rebates and tax credits in the federal Inflation Reduction Act (IRA) to those offered by states and local utilities, provide more tools for selling those high-end products.

OEMs and HVAC-specialized marketing companies have quickly incorporated efficiency incentives into their marketing strategies, which focus on the money that can be saved through incentives, the greater energy efficiency of the products, and the long-term savings that come with lower energy costs.

Contractor-facing marketing from OEMs makes it easier for HVAC contractors to understand incentives and use them to sell higher-end equipment to homeowners.

Building Awareness

“It’s not really complicated for the contractor. It’s all really more about awareness and making sure that they talk to the consumers about those incentives,” said Francois Lebrasseur, market development manager at water heater and boiler manufacturer A. O. Smith Corp.

TAKE IT TO THE MAX: A Voltex Max heat-pump water heater from A.O. Smith. The 40-gallon model has a uniform energy factor, or UEF, of 3.6. (Courtesy of A.O. Smith Corp.)

A. O. Smith builds a number of Energy Star-certified heat-pump water heaters that qualify for incentives, such as the Voltex Max, which has a uniform energy factor (UEF) of up to 3.6 for the 40-gallon version, which means the unit is 3.6 times more efficient than the installed base. (The 80-gallon model has a UEF of 3.88.) The Voltex Max has leak-detection and leak-notification features, and can be purchased with a shutoff valve that will activate in the event of a leak.

Lebrasseur said contractors don’t need to be sales hotshots, but simply pass on the relevant information, in order to sell products like the Voltex Max.

“They’ll be surprised by the number of times the consumers actually opt for the efficient equipment,” he said. “They don’t have, really, anything to do other than driving awareness of the incentive.”

A. O. Smith has a number of online resources, including an incentive lookup feature, that help contractors market its high-end products.

“We help our retailers and contractors advertise, proactively, our Energy Star water heaters and showcase the incentives which are available,” Lebrasseur said.

Online Tools

Ditto at GE Appliances, which is owned by Haier Electronics Group Co. GE Appliances has a rebate-finder, which searches by ZIP code, on its website for HVAC professionals as well as on its site for consumers, plus a page for contractors and distributors that provides information about available rebates and tax incentives, said Chelsea Carpenter, senior director for HVAC product marketing.

In addition, “we have developed an AHRI ratings and submittal tool which will help our customers to easily digest AHRI product ratings and help identify high-efficiency product that qualifies for incentives,” Carpenter said.

HIGH SEER2: The outdoor unit of a GE Endure inverter heat pump for ductless systems, from GE Appliances. When paired with a specific indoor unit, the systems have a SEER2 rating of up 23 and an HSPF2 rating of up to 12. (Courtesy of GE Appliances)

Among the GE HVAC products that qualify for incentives are heat pumps in the GE Endure series for ductless systems, which, when paired with a specific indoor unit, have a SEER2 rating of up to 23 and an HSPF2 rating of up to 12, Carpenter said.

Endure heat pumps are rated to provide 100% heating at outdoor temperatures down to 5°F and can provide heat, the company said, when temperatures are as low as -31°F and cooling in ambient temperatures as high as 115°F. The units come in a variety of capacities and have inverter compressors and base pan heaters that prevent condensation from freezing and blocking drain openings.

Rebate Experts

Daikin Comfort Technologies North America Inc. has put together a team of rebate program experts who study the many programs available around the country, said Matthew Baker, the company’s energy efficiency and electrification programs manager.

“The team determines which of our systems qualify and for how much, and then communicates those opportunities to our sales channels,” Baker said. “Those communications usually take place with distributors and manufacturer’s reps and are designed to reach contractors through downstream communications from contractor account managers.”

Daikin also is preparing templates that contractors can use to create fliers that will link qualified Daikin equipment with the IRA’s Home Energy Rebate programs, which so far have only been rolled out in a few states.

Baker said Daikin’s key messaging around high-efficiency/high-end products is the importance of inverter technology in variable-capacity systems.

“These systems provide outstanding performance, comfort, and efficiency, and can reduce the strain on the electric grid compared to less efficient, non-inverter systems,” he said.

The Daikin Aurora multi-split heat pump, for ductless systems, is equipped with an inverter compressor. Baker said the Aurora models have a SEER2 of up to 20 and an HSPF2 of up to 9.7. They’re rated to provide 100% heating at ambient temperatures down to 5°F and can operate in heating mode in temperatures as low as -13°F, Baker said. They can provide 100% cooling in ambient temperatures up to 115°F, and come in several capacities.

INVERTER-DRIVEN: Various components of a Daikin Aurora multi-split heat-pump system. Units in the Aurora line have an SEER2 of up to 20 and an HSPF2 of up to 9.7. (Courtesy of Daikin Comfort Technologies North America Inc.)

Focused Messaging

Crystal Williams, founder of Lemon Seed Marketing, a marketing agency focused on the HVAC, plumbing, and electrical trades, said her company has used direct mail, email marketing, and social media to help customers use incentives to move their high-efficiency/high-end equipment.

“My team has created campaigns that make these incentives a central part of the value proposition, focusing on things like long-term savings, environmental benefits, and energy efficiency,” she said.

Williams offered some tips for contractors who want to better leverage incentives:

• Stay informed. “Keep up with both national and local incentives by subscribing to industry newsletters, following government agencies, and joining HVACR trade associations,” she said. “This way, you’ll always be aware of any changes or new opportunities that come up.”
• Use technology, including the online tools that show what incentives are available and where. Williams likes DSIRE, the Database of State Incentives for Renewables & Efficiency, which is run by the N.C. Clean Energy Technology Center at North Carolina State University.
  “Don’t forget to keep your team in the loop — regular training sessions can ensure everyone is up to speed and ready to communicate these benefits clearly to customers,” Williams said.
• Keep messages simple and focused on the key benefits.
  “Don’t overwhelm your audience with too much detail about the incentives. Instead, highlight the most relevant ones and offer help with the application process,” she said. “Remember, while we live and breathe HVAC every day, the average homeowner doesn’t.”