Until recently, homeowners looking to install a new HVAC system most often asked us about the nuances of a system’s SEER ratings or the differences between brands and models. While we still get these questions, we are starting to get questions like, “Where is this unit made?” and “Is this system impacted by tariffs?”
While homeowners are still predominantly interested in a system’s efficiency, they are starting to worry about potential price hikes associated with tariffs and other global issues affecting HVAC equipment pricing. Many homeowners hope to avoid these price increases by looking for a product made in the US. However, as HVAC professionals, we know the situation isn’t that simple.
HVAC sales teams need to get ahead of the conversation and help our customers make informed decisions. We can do this by staying informed ourselves and being proactive about homeowner education.
What’s Driving HVAC Prices Up?
Right now, refrigerant costs are front and center. Beginning January 1, 2025, the industry began transitioning to R-454B as the replacement for R-410A. However, due to ongoing trade tensions, the shipment and production of R-454B have faced significant backlogs, creating a nationwide deficit. Contractors nationwide are scrambling to secure inventory (this backlog has significantly impacted us here in California’s Bay Area).
Without enough refrigerant, some new installations may be delayed or incomplete. Since January, the price of refrigerant has already spiked by 40%, and as of May 1, many suppliers in the San Jose area have announced formal price increases. While some of these suppliers are negotiating with federal officials to secure some relief for the HVAC industry, the outcome is uncertain, and likely, these high prices are here to stay.
Beyond refrigerant, heat pumps and air conditioning systems themselves are steadily increasing in price, too. Since COVID, materials prices for wood, metal, and copper have increased significantly. With the ongoing tariff situation, as well as increased efficiency standards affecting the cost of manufacturing, the price of HVAC systems will likely continue to rise.
That said, labor costs remain relatively stable for now, and there is cautious optimism that proposed tax relief measures could help offset inflationary pressure on wages, allowing businesses to keep labor rates steady in the long run, which could help homeowners better afford much-needed upgrades, even as material costs continue to rise.
Repair or Replace? Guiding Homeowner Behavior
Economic factors like tariffs and inflation are real concerns, but they haven’t completely stalled purchasing behavior. When financing is presented clearly and responsibly, homeowners are more than willing to commit. For technicians, this means the responsibility is shifting, and now, communicating financial solutions is just as important as technical skill.
Helping customers understand their options, including rebates and payment plans, can significantly affect their decision to proceed. It is also our job to help protect homeowners from making rash decisions, such as replacing a well-functioning system far too early or pushing a system that’s past its prime too far.
Framing Cost Increases the Right Way
No one wants to hear, “Prices are up; deal with it.” But we shouldn’t sugarcoat the truth either. Good communication lies in how we explain pricing and place that explanation in context with the customer’s unique situation.
One effective strategy is to use seasonality and demand. During peak summer, demand surges, and so do prices. Remind homeowners that locking in necessary replacements before the rush can save money and stress.
Stressing urgency when it matters is not a scare tactic; it’s a practical reality of the industry and the homeowner’s personal situation. If a homeowner’s system is unlikely to last the summer, they need to know now, before it breaks down on them and before they are potentially forced to pay after-hours emergency replacement fees.
The goal is to position these conversations as value-driven, not defensive. Sharing the why behind pricing changes builds credibility and helps customers feel informed rather than pressured.
Staying on Top of Rebates and Incentives
With rising costs, rebates are more critical than ever. However, they have become more complicated. As an HVAC professional, it is your responsibility to stay informed on your area’s rebates and incentives. Though the rebates themselves may be complex, finding the information doesn’t have to be a headache.
Easy ways to keep up-to-date include:
- Subscribe to newsletters from local utility companies and rebate programs.
- Follow these organizations on social media.
- Attend local energy or community events.
- Stay informed through major news sources from both sides of the political and economic spectrum (each offers a different perspective and may highlight different opportunities for homeowners).
- Keep an eye on industry publications like ACHR News.
Making Rebates Simple for Homeowners
Even the most generous rebate is useless if it’s too complicated to claim. Many homeowners lose out because the paperwork is too confusing or the deadlines are missed. That’s why some HVAC companies are building dedicated rebate departments to walk homeowners through the process. We’ve done this at my company, IRBIS Air, Plumbing & Electrical, and it has been a resounding success, leading to happier customers and smoother installations.
Even without a full department, there are steps any contractor can take and see an immediate value add:
- Print out rebate forms from each provider and hand them directly to customers.
- Include the relevant links and deadlines on quotes or post-sale emails.
- Offer a checklist so homeowners know what to submit and when.
I cannot stress enough: the more support provided during this process, the more trust is built, which often leads to referrals later on.
Be the Guide, Not Just the Installer
Inflation, tariffs, and rebates are more than just industry buzzwords. They are now part of the day-to-day decisions homeowners are facing and the questions we are fielding as HVAC techs. When we communicate with clarity and confidence, we become more than just service providers. We become trusted advisors.
That’s where loyalty is built. And in a competitive market, trust is worth more than any promotion.