A majority of consumers consider sustainability when making decisions about improving their homes, and most cite the savings that can be achieved with more sustainable products, rather than concern about the environment, as their primary reason for doing so.
That’s one of the key findings of a recent survey of 600 U.S. homeowners commissioned by AUX Air USA, part of a global HVAC manufacturer, AUX Air Conditioner Co. Ltd., that’s based in China and is introducing its heat pumps to the U.S. market.
About 58% of survey respondents said sustainability was either very important or extremely important in making decisions about home upgrades. Another 29% said sustainability was somewhat important, 10% said it was not very important, and about 4% said it was not important at all, the survey found.
Just over half the respondents, 51%, said saving money was the primary reason they would consider making their homes more sustainable, while only 20% said the environment was their primary reason. Health and IAQ (16%), improving property value (12%), and being part of a sustainability trend (1%) were further down on the list.
“Sustainability is important for consumers across the United States,” said Matt Lacey, vice president of sales for Canada and the western U.S. at AUX Air USA. “Sustainability … is definitely something that’s at the forefront of their mind when they’re talking about upgrading systems.”
SALES VP: Matt Lacey is the vice president of sales for Canada and the western U.S. at AUX Air USA. (Courtesy of AUX Air USA)
“Any time a homeowner wants to upgrade, of course, they want to save money,” said Chris Hunter, principal industry advisor at ServiceTitan.
But high-efficiency, energy-saving HVAC systems are typically more costly than less-efficient systems, Hunter said.
“Those are the premium systems. They cost more,” he said. “Typically, they’re more complex. They’re hard to install.” Those premium costs are on top of dramatic inflationary increases that have hit the industry in recent years, Hunter said.
Cost can be an obstacle for homeowners who are looking to upgrade their HVAC but who are also watching their pocketbooks: The survey also found that half the respondents said the upfront cost is the main barrier preventing them from upgrading to a more energy-efficient — that is, sustainable — HVAC system. In addition, 76% cited high purchase costs, and 57% cited installation costs, as factors that make HVAC upgrades less accessible.
OBSTACLES TO UPGRADING: Upfront costs were cited by half of the survey respondents when they were asked about the main barrier to upgrading their HVAC. (Courtesy of AUX Air USA)
“One thing I thought was going to happen was how much the cost is a barrier to sustainability,” said Lacey. “I mean, it makes sense to think about that, right? But in that survey, we realized just how big of a factor it really is.”
Hunter, who is also a former contractor and a co-founder of Go Time Success Group, which provides training, consulting, and coaching to HVAC contracting businesses, said contractors need to present multiple system options to homeowners who are looking to upgrade or change out their HVAC systems.
“They can’t assume they just want the cheapest, and they can’t assume they don’t want a very eco-friendly option,” he said.
Contractors also need to present homeowners with financing options and with available consumer incentives for high-efficiency HVAC, such as rebates or tax credits, to get would-be customers closer to yes, Hunter said. But with the future of federal incentives in doubt during the initial months of the Trump administration, contractors need to make sure they’re still available before offering them to homeowners.
“The last thing a contractor wants to do is promise a rebate, and all of a sudden funding drops,” Hunter said.
AUX Air, which offers air-source heat pumps both for mini-splits and forced-air systems, has a leg up when it comes to the cost of sustainability, according to Lacey: Its heat pumps are priced competitively, and can usually be installed by one technician in one day, reducing labor costs compared to brands that require two technicians and more time to install.
“The reality is that sustainability needs to be affordable,” Lacey said. “And we offer a product that allows a more competitive installation cost to consumers than some of the other brands that are out there.”
Among the other findings of the AUX Air survey:
• A majority of respondents, 62%, said they had little or no familiarity with government or utility company rebates for sustainable home upgrades: 41% said they had heard of them but were unsure of the details, and 21% said they were not familiar with them. Only 9% reported being very familiar with rebates, while 29% said they were somewhat familiar.
• An upfront rebate was the incentive that the largest proportion of respondents, 48%, said would sway them toward investing in sustainable HVAC; another 21% listed tax credits as the most encouraging. Low-interest financing (20%), free consultations or evaluations (8%), and “other” (3%) were also on the list.
• A majority of respondents, 52%, reported being somewhat committed to sustainability in the home, while 18% reported they were very committed. Another 26% said they were neutral on the subject, and 4% said they were not committed.